Tuesday, April 10 2017
John Bollinger Commentary From April 2017 Newsletter
The NYSE advance - decline line made a new high on Friday March 31. Strong stock-market internal indicators like that simply do not suggest that a negative outlook for the market is appropriate at this time. In the face of such internal strength our outlook has to be positive, which means that we are looking to buy weakness.
It is not that the possibility of a negative outcome is forgone, it is just that the odds are against a serious decline at present and we play the odds. Confirming the strength in the advance - decline line is an absence of new 52-week lows during the recent consolidation. If this were a top being built we would expect to see both the advance - decline line roll over and turn down and new lows start to expand.