March 2, 2019
Welcome to the Bollinger Bands Letter Update for Saturday March 2, 2019.
The market has stalled a bit and fear of a downturn has caused some rotation out of mid-cap and smaller stocks into the "relatively safer" large-cap stocks, and our FAANG Index also remains stalled. Of all the stocks in the index Google has the best chart. I remain bullish on stocks, both here and abroad. One of the reasons is the market’s reaction to news; lots of bad news just hasn't caused much damage, which is a sure sign of strong underlying demand.
Speaking of news, you might want to check out a new news-based web site, bettertrader.co. It does a nice job of analyzing market response to economic new releases; sort of a smart econ calendar. I think that in the March letter I'll survey some of the investment sites and tools I think are worthwhile.
A friend recommended Berkshire B stock this weekend. Value-oriented investors might want to have a look as it is starting to develop a nice chart. Speaking of nice charts, MMM is trying to break out and should run to test the old highs if it does.
Stay the course.
The Value Line Program remains in the market, with the Value Line Geometric at 544.46 the Friday sell stop stands at 533.71.
There are two changes to the ETF program this week, sell IAU and RSX, buy PBW and EWH. That is a switch from gold to clean energy and from Russia to Hong Kong.
The ETF Program portfolio holdings:
Style (21): IWO 7, IWR 2, IWP 1
International (21): EWH 1, EWL 2, EWZ 11
Sector (27): PBW 1, XLU 7, PSJ 4
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.