January 22, 2019
Welcome to the Bollinger Bands Letter Update for Tuesday the 22nd of January 2019.
The recent rally off the panic lows carried us into overbought territory and set the stage for Monday’s action; the pullback we expected looks to be upon us. Given the strength of recent market action and the quality/variety of the buy signals that were generated at the lows we expect the pullback to be mild and will use it as a buying opportunity and an opportunity to increase our allocation to US stocks. We remain bullish on US stocks and to a significant, but lesser extent, international stocks.
The Value Line Program is in the market. With the Value Line Geometric Average at 508.01, the Friday sell stop stands at 504.17.
There are no changes to the ETF portfolios this week.
The ETF Program portfolio holdings:
Style (21): IVV 7, IWD 8, IWP 1
International (21): RSX 4, EWL 6, EWZ 1
Sector (27): XLV 6, XLU 12, PSJ 2
Our allocations are 60% US stocks, 10% international, 10% yield and 20% 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 2019 by Bollinger Capital Management, Inc.