Thursday, August 23 2017
John Bollinger Commentary From August 2017 Newsletter
The Stock Market
I strongly suspect that we have made the highs for the year in the US stock market and will now work our way lower into a late fall, early winter market bottom that will, in turn, usher in another good period to own stocks. This seasonal pattern has a long history, but it occasionally fails so we wait for it to actually set up rather than trying to anticipate it. That is a very important concept.
So much of what we do has to do with finding a setup where the odds are in our favor, the amount risked is less than the potential reward and then waiting for confirmation. That last bit involves giving up a bit of gain in exchange for increasing the odds of success. I am not sure how many traders have thought that through, but it has been a core concept here since our beginnings.