October 5, 2017
Welcome to the Bollinger Band Letter Weekly Update for Thursday the 5th of October 2017.
I'm leaving to attend the International Federation of Technical Analysts annual meeting and will be traveling for the next ten days. I am not sure what update schedule will be possible, so I am posting this interim update as I head for the door. I have also posted an updated Market Timing Chart Pack.
The stock market remains quite healthy, with no sign of the usual October troubles yet. Our FAANG Index (see chart below) is still lagging the market, but we wouldn't make too much of that just yet. So far our fall caution has been unwarranted. The VIX is at levels consistent with a price correction so the name of the game is to look for a trigger; none in sight yet, but the markets have a way of getting volatile whenever I travel, so this trip might just provide the trigger.
I continue to recommend using the strength in the energy sector to reduce our overweight position in the energy stocks. I am not arguing to eliminate energy, just not to be over-weighted.
Smaller stocks have moved from playing catch up to being market leaders and growth is slightly preferred to value.
I took an initial position in Apple, AAPL, today for my own account, mostly to focus attention. I'll want to see how the pattern develops a bit more before making a proper commitment. So far, the pattern looks like a classic relative-strength pivot.
Details on our Allocations, Ice Breaker and our ETF portfolios can be found here:
Until next time, I wish you well.
John Bollinger, CFA, CMT
Copyright 2017 by Bollinger Capital Management