Wall Street charting pioneer John Bollinger shared his views on the market and his methods of assessing market health in an exclusive interview for CNBC PRO with Mike Santoli.
On his money management style: "We're more of a quantitative-oriented shop, we look at trends in the market. We like to focus very strongly on groups and sectors," Bollinger said. "We combine some technical analysis, some fundamental analysis, and some quantitative analysis into an approach that tries to take the emotions out of the trading process so we're not forced to make bad decisions at market extremes."
On ETFs: "They've had a tremendous impact. All these exchange traded funds – things like the SPY, DIA, and QQQ just to name a few of the big ones – they have a really interesting effect that people don't really talk about very much," he said. "They weld the market together. Because these big lists of stocks are bought and sold simultaneously, they cause the action of all of the individuals stocks to become much more correlated than it had been in the past."
Bollinger is the president and founder of Bollinger Capital Management, an investment management and research firm that provides technically driven money management and research. The analyst is most famous for his development of Bollinger Bands in the 1980s. The bands are intervals on a price that demarcate relative highs and low given current market volatility.
He also discusses:
- Bollinger Bands.
- Market volatility.
- President Donald Trump's focus on infrastructure.
- Big growth stocks.
- Why certain indicators are always reliable.
The interview is exclusively for CNBC PRO subscribers.