February 12, 2026 We recommend the following changes…
A further collapse in our Gorilla Index along with a renewed decline in our AI Index this week signal that market weakness is spreading. With these technical warnings growing louder, we are recommending the following defensive update to our Model Fund Portfolio:
- Increase the Direxion Daily S&P 500 Bear 1X ETF (Symbol: SPDN) from 5% to 7%. We are incrementally raising portfolio defenses with this S&P 500 inverse index fund. For more information about inverse index funds or to see alternative options to SPDN, please see The “Bare Necessities” About Bear Funds in the Subscriber Library.
Following this change, the Model Fund Portfolio is comprised of 58% long positions, 7% in an inverse index ETF, 5% in an intermediate Treasury ETF, and 30% cash held in short-term Treasurys or a money market fund. This results in 51% net equity exposure.