Welcome to John Bollinger's Capital Growth Letter Hotline for Tuesday the 21st of February 2017.
The stock market continues to make new highs with no signs of technical deterioration. That strongly suggests that there is more upside to come. I know that this is feeling like nose bleed altitude to many investors, but I would like to remind them of the old saw 'The most bullish thing the stock market can do is get overbought and stay so.' We'll stay the course until we see some concrete signs of deterioration.
Over the weekend a storm-driven outage caused substantial damage to our data infrastructure. Our analytical sites are down and we regrouping and assessing our options.
There is one change to the ETF portfolio this week. Sell RSX, which had quite a nice run, and buy EWA, which is a switch from Russia to Australia.
Ice Breaker has three open positions, one in SPY and two in QQQ, with an average gain of nine percent.
There were no other changes to the portfolios this week.
Be careful out there!
The Value Line Plan is in the market with a Friday sell stop of 512.57.
The Value Line Geometric Index stands at 525.17.
The current allocations are:
70% US stocks, 10% International, 10% Yield and 10% Cash.
The ETF Program portfolio holdings:
Style (21): IUSV, 8, IWF, 8, IWB, 1.
Country (21): EWO, 1, EWA, 2, EWT, 0.
Sector (27): IGN, 3, IXG, 1, SOXX, 6.
Details on our Allocations, Ice Breaker and our ETF portfolios can always be found on the Capital Growth Letter web site.
Until next time, I wish you well.
John Bollinger, CFA, CMT
Copyright 2017 by Bollinger Capital Management