September 24, 2026: We Recommend the following changes to our Model Fund Portfolio
InvesTech’s time-tested Negative Leadership Composite (NLC) is giving an important warning as the bearish Distribution component hit -100. As leadership deteriorated, breadth has also broken down as measured by the InvesTech A/D Divergence Index. With these important technical indicators ringing alarm bells, 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 8%. 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 62.5% long positions, 8% in an inverse index ETF, 5% in an intermediate Treasury ETF, and 24.5% cash held in short-term Treasurys or a money market fund. This results in 54.5% net equity exposure.