zeegit: Your Squier is grounded properly, it seems. This is what SHOULD happen when you touch your strings! If you look at the electronics, you should even see a wire coming from the bridge (which connects, therefore, to the strings) to ground.
You should do likewise if you haven't already. In addition to the process of eliminating ground loops, you need to connect your bridge to ground. This is done different ways for different guitars, but the only thing you need to concern yourself with is getting a wire from the 'strings' to ground.
In other words, you don't solder to the strings themselves, obviously, but you need to make it electrically continuous. If your strings touch a wood bridge, you can't ground the bridge for obvious reasons. But using your craftiness and ingenuity, you need to ground a wire from any location that's electrically continuous with your strings. In a strat, this is often the trem claw! In a telecaster it's any part of the bridge. In an LP, there's usually a small wire that leads from the bridge post (the post connects to the bridge, the bridge connects to the strings-- electrically continuous!).
I've done modified GuitarNuts shielding for both my electrics (with help and guidance from LoveKraft and others!), so if you have any questions, I'm pretty familiar with the sometimes-ambiguous wording.
Greg