Squealing stops with brakes

My 89 Formula recently started squealing when I take off. It's coming from the front wheels and it stops when I apply the brakes.
I've read the Chilton's and Hayne's already, but there is no explanation of the squeal. I'm thinking it's a wear indicator telling me to replace the brake pads. Am I correct?
Also, my rotors appear to have grooves in them as if excessively worn, but, they feel smooth to the touch. And comments about this would be appreciated as well.

Thats usually a sign of wear indicators. Those grooves in the rotor could be caused by exposed rivets in the brake lining. When/If you change the pads, make sure to turn or replace the rotors.

I thought the indicators squeal when you press the brakes...You can look at the brakes and easily tell if its the wear indicator. If its touching the rotor, its time for brakes. A lot of times those wear indicators need adjustment. Ive seen them on several occasions start contacting the rotor before the brakes are even half worn down.

Maybe sombody put brakes on it and didnt put that brake lube on them. if thats the case that would explain the brake chatter haulting when you apply the brakes.