August 25, 2018
Welcome to the Bollinger Bands Letter Update for Saturday August 25, 2018.
It doesn't get much better than this for stocks. The stock market is able to ignore terrible political, interest rate and trade news while pushing out to new highs. All of our tracked advance-decline lines made new highs last week in concert with many of the averages. Charles Dow's Theory is in bullish mode. Our Value Line Plan has been in the market for 22 straight weeks. Our FAANG Index has made a classic Bollinger Band double bottom and turned higher. Smaller stocks are leading and growth is holding an edge over value.
This can't go on forever, but we see no signs of deterioration yet. Our outlook for stocks remains bullish and we expect higher prices into the fall. This could prove to be one of the years in which the negative fall seasonals get overrun. We are on the alert for trouble, as it all seems too good to be true, but so far, so good.
Keep calm and carry on.
The Value Line Program is in the market, with the Value Line Geometric at 589.32, the Friday sell stop is 575.97.
There were no changes to the ETF portfolios last week.
The ETF Program portfolio holdings:
Style (21): IJT, 1, IWF, 6, IVW, 7.
Country (21): EWQ, 7, EWL, 1, EWA, 6.
Sector (27): XLK, 8, PSJ, 4, XLY, 5.
Our allocations are 60% US stocks, 10% international, 10% yield and 20% cash.
Aggressive accounts should be 70% stocks, 10% cash.
Details on our Allocations, Ice Breaker positions and ETF portfolios along with our weekly Market Timing Chart Pack can be found here:
Until next time, I wish you well.
John Bollinger, CFA, CMT
Copyright 2018 by Bollinger Capital Management, Inc.