December 15, 2018
Welcome to the Bollinger Bands Letter Update for Saturday the 15th of December.
Larger stocks continue to outpace their smaller brethren by a wide margin and growth is now substantially outperforming value. The market continues to sell off overrunning positive signals almost as they are generated. Needless to say this a very frustrating time, but clearly despite all the positive set-ups there is more selling that needs to be accommodated. Perhaps it is the biggies not wanting to show certain assets on their books at year end, or perhaps it is simply fear. Whatever the case, no increase in the allocation for US stocks yet. I did buy some IJR and IBM for managed accounts, but that looks to be early.
I added a Miekka Summation chart with a reference line for his buy level to our Market Timing Chart Pack. It is Chart 12. I also switched DJP for DBC in both the sector grid and commodity chart, which looks to be an improvement that increases the information content.
I'll take another pass at a search for Bounce candidates this week and post them in next week's Update. There certainly doesn't seem to be any urgency to get the bouncers bouncing, making this one of the latest Bounces ever.
I understand that these are turbulent times and will post a mid-week comment.
As the British WWII poster advised: Keep calm and carry on.
The Value Line Program is out of the market. With the Value Line Geometric Average at 493.08, the Friday buy stop stands at 500.85.
There are no changes to the ETF portfolios this week.
The ETF Program portfolio holdings:
Style (21): IVV 4, IWD 4, IVE 9
International (21): RSX 4, EWL 8, EWZ 1
Sector (27): XLV 5, XLU 1, XLP 4
Our allocations are 50% US stocks, 10% international, 10% yield and 30% cash.
Details on our Allocations, Ice Breaker positions and ETF portfolios along with your weekly Market Timing Chart Pack can always be found here:
Until next time, I wish you well.
John Bollinger, CFA, CMT
Copyright 2018 by Bollinger Capital Management, Inc.