May 11, 2019
Welcome to the Bollinger Bands Letter Update for Saturday May 11, 2019.
Despite the bad news on Friday, we turned in an outside day, a lower low than Thursday's low and a close above Thursday's high, a positive pattern. That has been the hallmark of recent market action, strength in the face of adversity.
It looks and feels like we are in a minor correction. At this time I do not detect anything worse. Our intermediate-term outlook for US stocks remains positive and we expect to see higher prices on the other side of this correction. One potential problem is the level of bullish opinion in the sentiment surveys, which is getting rather high. Countering that we have a level of underlying fear that was highlighted by the recent surge in the VIX. All told we are still on track with a chance of further correction. Our tactic here is to look for stocks that we want to own that are at interesting reentry levels.
This is a newsletter week, the May Bollinger Bands Letter will be posted Saturday the 18th.
The Value Line Program exited the market Friday. With the Value Line Geometric at 538.45. The Friday buy stop stands at 546.57. The classic version remains in the market with a Friday sell stop at 511.22.
There is one change to the ETF program this week, sell IGN and buy PBJ, which is a switch from tech to food & beverage.
The ETF Program portfolio holdings:
Style (21): IVW 2, IWR 7, IWP 1
International (21): EWH 8, EWL 1, EWI 12
Sector (27): PBW 1, PBJ 1, SOXX 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.