November 4, 2018
Welcome to the Bollinger Bands Letter Update for Sunday the 4th of November.
I believe that the stock market correction is over and that we have entered a period of base building that will transition into a rally phase once distribution and accumulation come back into balance. Our main job now is to work out what the likely leadership will be for the ensuing rally and position ourselves accordingly.
I am on my way home and will be back in the office Monday.
Stay calm and carry on!
There are two changes to the ETF portfolios this week. Use the international cash allocation to buy RSX, which is the Russia ETF. Sell XLK and buy XLV, which is a move from technology to healthcare.
The Value Line Program reentered the market Friday, with the Value Line Geometric Average at 538.47, the Friday sell stops stands at 525.71.
Style: IVV 4, IWF 5, IVW 1
International: RSX 2, EWL 3, EWZ 1
Sector: XLV 3, XLU 2, XLP 1
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.