April 9, 2019
Welcome to the Bollinger Bands Letter Update for Tuesday April 9, 2019.
I prefer not to write and publish the letter over the Easter weekend, so it will be early this month, Saturday April 13th.
The US stock market remains in very good condition with market internals strong across the board. Even smaller stocks, which have been laggards in this rally, are thinking about trying to play a little catch-up. Irrational fears concerning a "yield curve inversion" seem to be abating. A real bonus is the improved performance of the international markets against the noise of economists reducing their projections, which goes for the emerging markets as well. We continue to like and recommend EEM, the emerging-markets ETF.
There is one danger area, the energy stocks, which are not echoing the strength in crude. We prefer to see the stocks in the lead as an indication of a sustainable rally. Other than that it is "all clear". I know there is a lot of negativity out there and a lot to worry about, but we'll alert you when we see clouds on the horizon.
The Value Line Program remains in the market, with the Value Line Geometric at 548.53 the Friday sell stop stands at 535.39.
There is one change to the ETF program this week, sell utilities, XLU and buy technology, IGN.
The ETF Program portfolio holdings:
Style (21): IVW 3, IWR 5, IWP 1
International (21): EWH 1, EWL 2, EWI 6
Sector (27): PBW 3, IGN 1, PSJ 11
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.