April 29, 2022: We recommend the following changes…

There continues to be a gradual yet persistent deterioration in the technical environment.  Most notably this week, our Gorilla Index made an initial break through its second important technical support level, confirming the earlier breakdown in our Canary (in the coal mine) Index.  Additionally, both market breadth and leadership have been poor, even on days where the market has been trading higher.

Considering the ongoing technical weakness, we are incrementally reducing the equity exposure of the Model Fund Portfolio.  To accomplish this, we advise reducing the allocation to the Invesco S&P 500 Equal Weight Technology ETF (symbol: RYT) from 14% to 11%.  This trade brings the net invested allocation of the Model Fund Portfolio down to 55% and bolsters the portfolio’s already defensive positioning.