01/03/17 Welcome to John Bollinger's Capital Growth Letter Hotline for Tuesday the 3rd of January 2017.
We wish you and yours a healthy, happy and prosperous 2017!
As of Friday the Value Line Program generated an exit signal by just a few cents. We will wait for confirmation this Friday, the sixth. Why? This is indicator-black-out time and we do not take market-timing signals in this period, especially marginal ones.
We have seen a study that suggests that the last week of the year and the first week of the new year are generally mirrors of one another in terms of gains and losses. That is if the last week is up, the first week tends to be weak and vice versa. So far this turn of the year is following that pattern.
We remain constructive on the US stock market. The NYSE advance - decline line made a new high on the 28th and new lows remain non-existent, even through tax selling and window dressing. We continue to favor mid-cap and smaller stocks and note that for those stocks growth is starting to pick up some relative strength on value.
There is one change to the ETF portfolios this week, sell EWJ and buy EWI, which is a switch from Japan to Italy.
Be careful out there!
The Value Line Plan is *in* the market with a Friday sell stop of 506.45.
The Value Line Geometric Index stands at 510.75.
The current allocations are: 60% US stocks, 10% International, 10% Yield, 10% Forex and 10% Cash.
The ETF Program portfolio holdings: Style (21): IUSV 2, IJJ 6, IWN 1 Country (21): EWC 6, RSX 1, EWI 2 Sector (27): IGN 5, IXG 1, SOXX 5