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Cautiously Bullish

Today SPY, the ETF based on the S&P 500, broke through into new all-time high ground. Of course the bears are pointing wildly to the divergences, of which there are many—as there must be. In the process of the market moving into new all-time high territory, inevitably there will be leaders and laggards. We are mostly interested in the tradables and note that IJR, the massive small stock ETF, and MDY, the massive mid-cap ETF, are each just a few ticks away from new highs. We focus on the actual determinants of portfolio performance, the securities people buy and sell, which we call tradables. We think that focus adds quite a bit of value to our analytical process.

We remain cautiously bullish, recommending small- and mid-cap ETFs for those that need additional portfolio exposure.

John Bollinger, Capital Growth Letter,, 310-798- 8855, June 6, 2016

John Bollinger is the president and founder of Bollinger Capital Management. The firm provides money management and proprietary technical analysis research and tools for institutions and individuals. John Bollinger is a Chartered Financial Analyst (CFA) and a Chartered Market Technician (CMT). His Bollinger Bands and related tools have been integrated into most charting platforms. His book, “Bollinger on Bollinger Bands” has been translated into eight languages and he is the founder of eight web sites for investors:,,,,, and He is an active member of the financial community, a featured expert in the financial media and a speaker at financial conferences worldwide. Mr. Bollinger is the recipient of the 2005 Market Technicians Association Annual Award for Outstanding Contribution to the Field of Technical Analysis.