John Bollinger, CFA, CMT, is president and founder of Bollinger Capital Management, an investment management company that provides technically driven money nederlands services. Regarded as one of the foremost market technicians, he is perhaps best-known to the public as the creator of Bollinger Bandswhich he developed in bands mids. The bands are featured on most financial charting software and websites. For those who don't know, would you briefly tell us what technical bands is? Well, you can divide the world of analysis roughly into two major pieces—perhaps four, but we'll get into that in a minute—technical analysis and fundamental analysis. The fundamental analyst studies the books of a company, the economy, competition, market penetration and other factors that have to do with the fundamental quality of the company's business. From those numbers, he creates a valuation. He then goes into the marketplace and compares that to the market price. Essentially, the fundamental analyst believes he can value the stock correctly and that the market may be wrong. Technical analysis takes exactly the opposite approach. The technical analyst believes that virtually all information that's available is correctly impounded into the price of a stock; therefore, studying the price history of a stock is in fact the best way to study what's going on with that company. To a technician, if a stock is rising, that indicates a positive outlook for the company. If the stock is falling, that indicates a negative outlook for the company. There's another factor worth considering in that the technician believes prices can and do go to extremes, where they no longer make any sense. But the technician measures that in relation to past price history. For example, if something is too far underneath its day moving average in comparison to the way it's behaved in the past, the technician may believe the stock is oversold and ready to bounce. Or if the stock is too far above its average, he may believe it's gotten ahead of itself and is ready for a pullback. That's sort of a mean-reversion approach. Those are the two main schools of technical analysis: That said, in the past few decades there's been bollinger changes. A large portion of what was once technical analysis is now practiced by people calling themselves quantitative analysts and behavioral analysts. So you really have four schools of analysis today: There are significant overlaps in the disciplines, but they're basically four categorizations of the approach of the analyst to the market. What types of securities do you use technical analysis on? Do you look at ETFs at all? I bands do look at ETFs. But technical analysis can be done on almost anything. In our own practice, we look at stocks. We look at ETFs. We look at futures. We look at indexes. And we look at commodities. All of these seem to work quite well with technical analysis. Do you have any thoughts on the hot sectors of the year, like health care, Japan and Europe? Are these areas to stick with? It's not so much that they're areas to stick with as it is the idea that we're in a rotational market. Especially for people who are interested in ETFs, bollinger is about the finest set of opportunities you get, because basically one set of groups, one set of market sectors, one set of macro areas will be going up, and another set will be going down. For somebody who's following price action in these markets, this is a great opportunity. These ETFs give you really interesting ways of being able to invest in sectors that we didn't have before. If you go back some years, all we had were a few mutual fund families that would allow very limited trading in some sector funds. But now we have these ETFs that are modeled on various indices that give you opportunities to play all these sector and different segments of the market. Which ETFs do you like to trade? Much of my history has been involved with the idea of volatility. To be an options trader, you have to have a good handle on volatility. So I'm very fond of all of the volatility ETFs. I follow them carefully. I use them as hedges and as market surrogates. And I quite like to trade them. That's an ETF we suggest accumulating on market pullbacks from a long-term perspective. Or you can trade an ETF based on the growth portion of that index, or the value portion of that index. That gives you a little grid of nine ETFs: You can move around just bollinger those nine ETFs as market trends change. For example, this year up until fairly recently, small-cap growth did really well. Despite the fact that "the market" didn't do much of anything, small-cap growth did a lot. The third area I really like in ETFs, that we just finished talking about, are all those group and sector ETFs. So those would be my favorite three areas in the ETF world—the group and sector area; the size and style area; and the volatility area. One area that declining is the commodity markets. We're hitting multiyear lows in all of these commodities. Do you see the downtrend continuing from here? The commodity markets tried to put in a bottom, and failed. So we're in another downtrend here. We're going to have to look for a bottom to form. I hate to put it so simply, but we're going to have to wait for prices to stop falling. In the long term, we're setting up for some tremendous opportunities in the commodity markets: But clearly, the selling and the liquidation process is not over yet. We've been range-bound all year long. Is it ready to break one way or the other? That's a huge amount of compression. We think we're going to see a correction to the downside first. It may not be a major bear market, but we think we're going to see some downside action here, possibly into the early fall, and then we'll reassess the situation. It could well be that it's just a correction that leads to another upswing in a bull market. But we'll need more evidence as bollinger go forward to make that conclusion. Is there any way to say how far along we are in this bull market? It's been six years now. Historically, is that nederlands long time? Nederlands like to say the bull is getting long of tooth; there's no question about that. But corrections—if this turns out to be a correction—can refresh the bull market. If you go back and look at the history of stocks, you can see that, often, bull markets have substantial corrections and then go on to have another leg up. Right now, it looks like we may nederlands in for merely a correction, but if there's a lot more damage done, it could turn into a bear market. View the discussion thread. Skip to main content. Bollinger's Top ETFs For Technical Analysis August 19, Find your next ETF Asset Class: All Asset Classes Alternatives Asset Allocation Commodities Currency Equity Fixed Income. All Regions Asia-Pacific Developed Markets Emerging Markets Europe Frontier Markets Global Global Ex-U. Greece Hong Kong India Indonesia Ireland Israel Italy Japan Latin America Malaysia Mexico Netherlands New York New Zealand Nigeria Nordic North America Norway Pakistan Peru Philippines Poland Portugal Qatar Russia Saudi Arabia Singapore South Africa South Korea Southeast Asia Spain Sweden Switzerland Taiwan Thailand Turkey U. United Arab Emirates Vietnam. More by Sumit Roy Sumit Roy. More Evidence Against Active. An annual study from Dimensional Fund Advisors offers more evidence against active management. Index Investor Corner June 19, Active Management Alpha-Seeking Equity. Related Articles Monday Hot Reads: Factors To Focus On Now. Persistent Returns Remain Elusive. Pacer Adds 2 'Cash Cow' Funds. 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As it has been mentioned above, mass media influences vast mass people, while it is influenced by a certain group of people who own some sort of power.
It is a rigorous curriculum that brings back student-teacher interaction, promotes higher-order thinking skills and provides students with a solid base from which they can achieve success.
As it has been mentioned above, mass media influences vast mass people, while it is influenced by a certain group of people who own some sort of power.
It is a rigorous curriculum that brings back student-teacher interaction, promotes higher-order thinking skills and provides students with a solid base from which they can achieve success.
She is an intelligent lady with a scientific and environmental background, and two degrees.