September 1, 2018
Welcome to the Bollinger Bands Letter Update for Saturday September 1, 2018.
Our FAANG Index etched out a classic Bollinger Band W bottom and has now retraced more than half its correction. See the chart below. In Bollinger Band terms, a bottom just doesn't get any better than that.
All of our tracked advance-decline lines made clear and unequivocal new highs last week. This may not be a one way market, but it is a strong market that is giving no signs of topping out. We remain constructive on US stocks and on the lookout for developing strength in the emerging markets.
Bitcoin made a bottom, turned higher, and the secondary coins and tokens stopped going down. We are currently in a rally mode walking up the upper Bollinger Band.
There were no changes to the ETF portfolios this week.
The Value Line program remains in the market; with the Value Line Geometric Average at 591.18 the Friday sell stop stands at 577.81.
The ETF Program portfolio holdings:
Style (21): IJT, 1, IWF, 3, IVW, 2.
Country (21): EWQ, 8, EWL, 1, EWA, 6.
Sector (27): XLK, 7, PSJ, 3, 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:
Happy Labor Day.
Until next time, I wish you well.
John Bollinger, CFA, CMT
Copyright 2018 by Bollinger Capital Management, Inc.