Welcome to John Bollinger's Capital Growth Letter Hotline for Monday the 27th of February 2017.
Both the daily and weekly versions of the NYSE Advance Decline Line continue to march higher confirming new highs in the indices, and our version of the late Richard Russell's Primary Trend Index continues in a dramatic up trend. There can be little doubt that we are in a bullish environment. The most interesting thing is that there are no signs of technical deterioration evident yet. None of the usual warning signs of a top are even close to worrisome. Our outlook for stocks remains positive and we recommend whatever level of exposure you are comfortable with. There is no doubt that there will come a time for caution, but the advent of such is simply not evident in the numbers at this time.
Large-cap stocks have developed some relative strength recently, but we still think that the sweet spot in the market going forward will be the mid-cap sector. Growth is also showing some signs of gaining traction. The combo, mid-cap growth, looks very interesting; IWP and IJK would be good ETF choices to play this sector.
There are no changes to the ETF portfolios this week.
Ice Breaker has three open positions, one in SPY and two in QQQ.
There are no changes to the Core portfolios this week.
We are still recovering from our server outage. The most important thing that is still broken is the Ice Breaker update page. We hope to have that fixed soon. In the meanwhile I will provide updates here.
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 528.14.
The current allocations are:
70% US stocks, 10% International, 10% Yield and 10% Cash.
The ETF Program portfolio holdings:
Style (21): IUSV, 8, IWF, 2, IWB, 3.
Country (21): EWO, 6, EWA, 4, EWT, 2.
Sector (27): IGN, 8, IXG, 8, SOXX, 7.
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