February 3, 2023: We recommend the following trades in our Model Fund Portfolio:

• Increase the allocation to the Industrial Select Sector SPDR ETF (symbol: XLI) from 6% to 8%.
• Increase the allocation to the VanEck Vectors Gold Miners ETF (symbol: GDX) from 5% to 6%.

The technical data has continued to improve following the Breadth Thrust signal from mid-January. With notable easing in downside market leadership in recent weeks, the bullish Selling Vacuum component of our Negative Leadership Composite has moved within striking distance of its +20 signal threshold. As a result, we are making the above changes to the Model Fund Portfolio.

With these changes, the Model Fund Portfolio now has an invested allocation of 53% with the remainder (47%) held in in short-term Treasurys or a money market fund. While there has been improvement in the technical data, significant market risks remain which continue to warrant a defensive approach. Future changes will continue to be made based on changes in the weight of the evidence, as the dichotomy between the macroeconomic and technical data continues to unfold in the weeks and months ahead.