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From the May 2019 Bollinger Bands Letter

We have had a short-term correction in the US stock market brought on mostly by trade-war fears. Internally the market has stayed strong as can be seen via a classic buy signal, the theoretical Dow tagging its lower 4% band with Intraday Intensity positive. At the same time we have had a substantial rotational correction with many stocks, groups and sectors moving in and out of favor. For example, a favorite like Tesla is down 46% without producing a knock-on effect for the market as a whole and there are plenty of stories like that.


The FAANG stocks remain under pressure, and as expected investors are looking elsewhere for leadership. These 'internal' corrections often resolve into broader corrections and we wonder if that isn't what we have just seen. Thus, the real short-term question is whether we will retest the lows.

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