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Bollinger: No One’s Heeding Bullish Market Signs

Is the market full of bullish signals that everyone’s ignoring? John Bollinger thinks so.

“I am pretty constructive on stocks here. Part of the reason is that few other people are,” the founder of Bollinger Capital Management said on “Fast Money” Wednesday. “The background is pretty bullish. We have good seasonals for us. We have good market internals.”

Bollinger, known for his technical analysis, said at least two positive seasonal forces were coming into play.

“We’re just coming into the best part of the year to own stocks, December through May,” he said. “In addition, from the four-year perspective, this is the best part of the presidential cycle to own stocks.”

Bollinger invoked the Dow theory buy signal, saying that stocks have “turned up and cleared resistance.”

The time to buy in this “net positive environment” would be on any pull-backs.

“I don’t think you have to worry about stops so much here. You may have to be doing a little bit of hedging if we get some untoward news events here,” Bollinger said.

Institutional investors are largely underinvested, playing low-beta, defensive positions.

“There’s going to be a lot of catch-up to play here,” he said. “We could see some pretty big upside in the market.”

Bollinger added a caveat.

“Seasonality never works perfectly,” he said. “It’s background information. It gives you a direction you can follow if nothing else intervenes.”

There are no sure plays in the current environment, said trader Joe Terranova.

“The financial world that we transact in has completely changed,” he said.

Trader Tim Seymour said the S&P 500 tipping point was 1,280.

From there, “I think you get a waterfall effect up to the 1,330 level,” he said. “That’s what I would be playing for.”

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Trader disclosure: On Dec. 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Seymour is long AAPL; Seymour is long BAC; Seymour is long INTC; Seymour is long CSCO; Gartman is long Gold; Terranova is long EMC; Terranova is long SU; Terranova is long NCR; Terranova is long UPC; Terranova is long TRLG; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long AXP; Terranova is long IBM; Terranova is long HES; Terranova is long CAT; Terranova is long SWN; Terranova is long CNI; Terranova is long DECK; Terranova is long SBUX; Murphy is long AKS; Murphy is long BAC; Murphy is long BTU; Murphy is long PCX; Stutland is long INTC; Stutland is long IBM ; Stutland is long CSCO and short calls; Stutland is long WMT and short calls; Stutland is long FXE put spread ; Stutland is long EWZ and short call; Stutland has GOOG short put spread; Stutland is long LQD; Stutland has TLT short puts; Stutland is long TIPS; Stutland is long DBA and short calls; Stutland is long AAPL and short calls; Stutland is long MSFT and short calls;

For Brian Kelly
Shelter Harbor Capital is long IWM

Shelter Harbor Capital is long EUO

Shelter Harbor Capital is long AUSSIE $

Shelter Harbor Capital is long RRC

Shelter Harbor Capital is long LNG

Shelter Harbor Capital is long CAT

Shelter Harbor Capital is long UK Gilts

Shelter Harbor Capital is long CAF

Shelter Harbor Capital is long Oil

Shelter Harbor Capital is long Corn

Shelter Harbor Capital is long Soybeans

Shelter Harbor Capital is long Rice

Shelter Harbor Capital is short Suisse Franc

For Brian Stutland
Stutland Volatility Group is a market maker holding hedged positions in VIX and VXX underlying and options holding hedged positions in SPY and SPX underlying and options.

For Jeff Palma
Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers and were prepared in an independent manner, including with respect to UBS, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report.

For John Bollinger
Bollinger has positions in SPY

For Michael Graham
No disclosures

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