November 26, 2017
Welcome to the Bollinger Band Letter Weekly Update for Sunday the 26th of November 2017.
The last two weeks saw a renewed surge in interest in smaller and mid-cap stocks coupled with continued interest in growth. Interest in the FAANG Index we have been tracking has waned a bit as interest in smaller stocks has picked up again, which we view as healthy. The advance – decline lines have all rallied to new highs and the market looks to be in remarkably fine health. Both implied and historical volatility measures remain too low for comfort; other than that the overall picture has improved quite a bit over the past two week.
Upward pressure continues on short-term interest rates. That is not a problem for the present, but there will come a time when it will be a problem.
I may have some further comments tomorrow when I have had a chance to fully catch up, but for now it looks like the market has done a remarkable job of avoiding the usual fall selling spree.
There were no changes to the ETF portfolios either last week or this week.
With the Value Line Geometric Average at 549.04, the Value Line Plan is in the market with a Friday sell stop of 536.15.
The current allocations are:
50% US stocks, 10% International, 10% Yield and 30% Cash.
The ETF Program portfolio holdings:
Style (21): IUSG, 3, IWF, 1, IWB, 5.
Country (21): EWO, 10, EWI, 11, EWN, 9.
Sector (27): XLK, 1, IGV, 4, PSJ, 3.
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