January 21, 2018
Welcome to the Bollinger Bands Letter Weekly Update for Sunday, the 21st of January 2018.
For US stocks large versus small remains a push with stocks of all sizes performing in roughly the same manner, however growth is maintaining a small advantage over value. Our FAANG index made a new high last week before pulling back a bit. The US stock market is walking up its upper Bollinger Band with few signs of trouble. We have seen a little flurry of new lows and we are a bit over bought, but other than that the coast is clear. We had seen a slight divergence in theoretical Intraday Intensity, but even that has been closed. The international markets are largely confirming the strength we see here. Even the VIX is off its most worrisome low levels. Grin and bear it seems to be the motto of the day. In any case, we are keeping our eye out for trouble. On the worrisome side, interest rates continue their march higher, but so far the market doesn't care. The crypto markets have put in bottoms, next week's action will likely tell us whether they are for real or not.
With the Value Line Geometric Average at 584.45, the Value Line Plan is in the market with a Friday sell stop of 571.15.
The current allocations are:
50% US stocks, 10% International, 10% Yield and 30% Cash.
There are no changes to the ETF portfolios this week.
The ETF Program portfolio holdings:
Style (21): IUSG, 4, IWF, 7, IWB, 1.
Country (21): EWO, 1, EWJ, 3, EWN, 5.
Sector (27): XLK, 4, IXG, 1, XLY, 2.
Details on our Allocations, Ice Breaker positions and ETF portfolios along with our Market Timing Chart Package can be found here:
Until next time, I wish you well.
John Bollinger, CFA, CMT
Copyright 2018 by Bollinger Capital Management, Inc.