May 1, 2017
Welcome to the Bollinger Band Letter Hotline for Monday the 1st of May 2017.
Happy May Day! Before May Day was politicized in the late 1800s it was a holiday to celebrate spring. Needless to say we prefer the older--and still current in many countries--sense of the day. In that vein we wish you and yours a happy May Day, may winter release its hold on you as the days get longer and the weather warmer. "May the road rise up to meet you. May the wind always be at your back. May the sun shine warm upon your face, and rains fall soft upon your fields."
The advance - decline line made a new high last week and new 52-week highs expanded dramatically. We see no signs of a top at this time, but remain a bit wary about a certain lack of momentum on the breakout. Our outlook remains positive and we believe that the rally has room to run yet. There had been a chance of a Bollinger Band top developing in the S&P 500, but last week's break of the upper band voided that setup. Frankly I'd prefer it if all sectors and styles had similar momentum, but rotation seems to be the name of the game, so we will have to live with that.
There are no changes to the ETF portfolios this week.
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.
If you need additional equity exposure, consider the Vanguard Growth Funds, VUG.
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 511.46.
The Value Line Geometric Index stands at 524.34.
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, 1, EWP, 3, EWT, 12.
Sector (27): XLK, 2, IGV, 1, SOXX, 8.
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