March 30, 2019
Welcome to the Bollinger Bands Letter Update for Saturday March 30, 2019.
We are in a bull market and I remain constructive on stocks thinking that pull backs are buying opportunities. However, this is a selective market so think about selling off the stuff that isn't performing and upgrading to better merchandise.
Many of the banks are on pullbacks and can be bought here. Citi, C, and Morgan Stanley, MS, look to be nicely set up for meaningful rallies.
I suspect that a strong theme going forward is going to be Biotech; have a look at IBB, the biotech ETF to get a feel for the sector. There are many patterns at present like this that will lead to meaningful rallies. For the adventurous, a second chance on Boeing, BA. It is on a pullback to its breakout level.
A wave of big IPOs is starting to hit. Lyft was first and Uber is soonish with more to come. Huge amounts of capital are being raised to fund these IPOs. Common stocks are mostly the source of those funds, which is depressing prices of stocks in general and creating opportunities for you.
The Value Line Program remains in the market, with the Value Line Geometric at 533.04 the Friday sell stop stands at 520.34.
There are no changes to the ETF program this week.
The ETF Program portfolio holdings:
Style (21): IVW 2, IWR 5, IWP 1
International (21): EWH 1, EWL 2, EWI 3
Sector (27): PBW 12, XLU 9, PSJ 1
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.