Welcome to the Bollinger Bands Letter Hotline for Thursday the 18th of May.
Wednesday's market action generated Ice Breaker buy signals for all five of the five monitored ETFs. Frontier Communication tells us that our servers will not be back on line until Monday, so I have computed the signals by hand. There were Ice Breaker buy signal buys for SPY, DIA, QQQ, IJR and MDY.
The recent highs in the averages were well confirmed. The odds of a substantial decline in the wake of such confirmation is small, so we will treat this pullback as an opportunity to add to existing positions and initiate new positions in securities we find attractive.
For many the urge to panic is strong here, but we insist on hewing to a rational line of action. Remain calm.