April 28, 2019
Welcome to the Bollinger Bands Letter Update for Sunday April 28, 2019.
Our FAANG Index recovered most of its losses but is still lagging the market. However, the market itself is not paying much attention and keeps moving higher. Our outlook for stocks remains positive and we like sectors which have seen recent pullbacks like healthcare and biotech. Double bottoms are always a possibility after these pullbacks, so patience may be rewarded, but these sectors look attractive to me. I bought some MRK and am looking at ABT, LLY, and NVS. Shocks like this in bull markets are usually what the old relative-strength traders called pivots. A nice parallel is the banks back in early March.
On the international front Shanghai is pulling back to its most recent breakout level and a nice reentry point. We also like EEM on the current pullback.
Despite extreme security one of our network attached storage (NAS) machines was hacked Friday night by a ransom-ware attack. We have backups and are recovering. The threat is real and must be taken seriously. Remember to be careful and take all appropriate precautions with your computers!
Keep calm and carry on.
The Value Line Program remains in the market. With the Value Line Geometric at 550.26 the Friday sell stop stands at 537.84. The stop for the classic version is 509.95.
There are no changes to the ETF program this week.
The ETF Program portfolio holdings:
Style (21): IVW 3, IWR 8, IWP 4
International (21): EWH 1, EWL 2, EWI 12
Sector (27): PBW 8, IGN 7, SOXX 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.