January 20, 2022: We recommend the following changes…

Due to the recent sharp breakdown in our Canary Index (which has now broken all support levels), plus the emergence of bearish Distribution in our Negative Leadership Composite (which moved decisively below -50 today), we are taking a more defensive stance in InvesTech’s Model Fund Portfolio and effectively reducing equity exposure. 

To accomplish this, we advise purchasing a 5% position tomorrow (Friday) in the following S&P 500 “Inverse” ETF: the Direxion Daily S&P 500 Bear 1X Shares (symbol: SPDN).  This hedge increases our overall invested allocation to 79% but, due to the inverse nature of the fund, reduces our net long exposure to the market to 69%.

Note that our portfolio is already more defensively positioned with a high cash reserve and conservative sector allocation.  Additional information on this position will be discussed in this week’s issue of InvesTech Research and included on Friday’s regular InvesTech Weekly Hotline.