February 23, 2019
Welcome to the Bollinger Bands Letter Update for Saturday February 23, 2019.
We remain positive on the market and expect higher prices into the middle of the year. Looking through our Market Timing Chart Pack we see some reasons for short-term caution, and sentiment is getting a bit one-sided, so chances of a pullback are increasing. We are short-term overbought and getting near intermediate-term overbought as well, but there are no signs of trend deterioration yet. If we do get such a pullback, I would use it to add to positions.
Our FAANG index is stalled and we think that there are better places to be, like mid- and small-cap stocks.
In the February ninth Update I wrote the following: "Interested in a bit of speculation? Have a look at the Shanghai Composite." It is up eight percent since and I think it has a long ways to go yet.
Stay the course.
The Value Line Program remains in the market, with the Value Line Geometric at 546.57 the Friday sell stop stands at 533.71.
The ETF Program portfolio holdings:
Style (21): IWO 10, IWR 2, IWP 1
International (21): RSX 12, EWL 2, EWZ 4
Sector (27): IAU 3, XLU 8, PSJ 5
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.