April 24, 2017
Welcome to the Bollinger Band Letter Hotline for Monday the 24th of April 2017.
I have a feeling that this consolidation period is coming to an end. New highs are expanding a bit, interest in growth is quickening, the advance - decline line made a new high Thursday, and smaller stocks are trying to regain their leadership role. But what really convinces me is that the bear raids just aren't successful; there is enough demand out there that they just can't take prices down. On the other hand, there is still quite a lot of sector rotation going on. I don't think we will be able to stage a breakout until more of the oars are in the water and pulling in the same direction. Our outlook for the market remains positive while we wait for the next rally to develop.
There is one change to the ETF portfolios this week, sell IUSV and buy IUSG, which is a switch from value to growth and is exactly the sort of switch I would make in the current environment. It is always nice when these switches line up with what you think. However, when they don't they can be important alerts that suggest a review of your outlook.
If you are following Ice Breaker, please be sure to have a look at the two new Ice Breakers, IJR and MDY. We now have five Ice Breakers, small- middle- and large-cap, the Dow and NASDAQ 100.
There are no changes to the Core portfolios this week.
Be careful out there!
The Value Line Plan is in the market with a Friday sell stop of 507.75.
The Value Line Geometric Index stands at 517.27.
The current allocations are:
70% US stocks, 10% International, 10% Yield and 10% Cash.
The ETF Program portfolio holdings:
Style (21): IUSG, 2, IWF, 1, IWB, 4.
Country (21): EWO, 3, EWP, 2, EWT, 9.
Sector (27): XLK, 2, IGV, 1, SOXX, 6.
Details on our Allocations, Ice Breaker and our ETF portfolios can always be found online:
Until next time, I wish you well.
John Bollinger, CFA, CMT
Copyright 2017 by Bollinger Capital Management