May 26, 2018
Welcome to the Bollinger Bands Letter Weekly Update for Saturday May 26th, 2018.
The FAANG stock index that we keep has made a new a new high, which is a minor ‘all clear’ signal for the market. The advance-decline lines that we track are all either at, or extremely close to, new highs, which is another positive factor.
Despite a sharp down day and the subsequent consolidation, our outlook for stocks remains positive. The market timing charts are all positive or neutral and there is no sign of the sort of internal deterioration we would expect to see if a market top were developing.
One important factor is the market’s reaction to news. It is still able to shrug off bad news, which is a fundamental indication of internal strength.
I had thought that working remotely might be problematic, but it turns out that the opposite is true. Away from the distractions of the office there is more time to observe what is going on and to think about the markets and our portfolios. At least in this regard, technology is living up to its promise and proving to be liberating.
There are no changes to the ETF portfolios this week.
There are no changes to the portfolios this week, maintain all positions including our spec trades if you made them.
I’ll be working from the road for two more weeks and our physical office will be closed. Even so, it is business as usual. If you need anything just email or call. (There may be some time zone delays.)
The Value Line Program is in the market. With the Value Line Geometric at 565.84, the Friday sell stop is 553.62.
The ETF Program portfolio holdings:
Style (21): IJT, 1, IWF, 7, IWO, 6.
Country (21): EWS, 3, EWU, 2, EWH, 1.
Sector (27): XLK, 5, PSJ, 1, XLY, 6.
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.