February 9, 2019
Welcome to the Bollinger Bands Letter Update for Saturday February 9, 2019.
We got very overbought on a short-term basis and are expecting a bit of a pullback in US stocks, or perhaps a bit more consolidation. Jim Miekka's summation work is now positive and the Russell 1000 advance – decline line has made a new high. The market remains healthy and roughly in balance with a lot of group / sector rotation evident. We see no clouds in the indicators at present and our outlook remains positive. Use any weakness to add to positions.
Interested in a bit of speculation? Have a look at the Shanghai Composite.
There are two changes to the ETF portfolios this week: Sell IWD and buy IWR, a switch from large-cap value to mid-cap. Sell XLV and buy IAU, a switch from health care to gold. I am leery about the switch to gold, but those are the numbers and that is how we roll.
The Value Line Program remains in the market, with the Value Line Geometric at 522.72 the Friday sell stop stands at 511.27.
The ETF Program portfolio holdings:
Style (21): IVV 9, IWR 2, IWP 1
International (21): RSX 3, EWL 9, EWZ 2
Sector (27): IAU 1, XLU 6, PSJ 3
Our allocations are 70% US stocks, 10% international, 10% yield and 10% 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.