Recap from the January issue of Trading Strategies and Tactics.
January Strategy Recap — Positioning into 2026
As we entered 2026, our posture shifted decisively from broad bullish participation to selective opportunity and rising defensive exposure. The emphasis was on time exhaustion, narrowing leadership, and failed bullish structures.
Bitcoin — Bear Market Positioning (BITI)
On December 4, 2025, we recommended buying BITI (inverse Bitcoin ETF) as a directional bearish trade aligned with cycle inversion and liquidity deterioration.
Entry: 22
Target: 31
Structure: Long ETF and call options
Thesis: Early phase of a multi-week decline in Bitcoin
This was not a hedge. It was an outright bearish position anticipating acceleration lower.
Critical confirmation level on Bitcoin itself remained 80,255. Failure of that support was expected to drive continuation.
High-Tech Breakdown — FNGD (Inverse 3× FANG+)
On December 1, 2025, we recommended buying FNGD as a directional bearish trade aligned with narrowing leadership and expected breakdown in high-tech.
Entry: ~55 (post 10:1 reverse split adjusted)
Target: Tactical downside acceleration (no fixed numeric target issued at initiation)
Structure: Long ETF
Thesis: Failed bullish patterns in semiconductors and large-cap tech; violation of cycle lows expected to trigger momentum selloff
This was not framed as a hedge. It was a direct bearish position anticipating breakdown in the FANG complex as part of the broader late-2025 / early-2026 peak thesis.
Confirmation trigger: Violation of the most recent trading cycle low in high-tech indices. Invalidation: Sustained recovery above the violated cycle low and resumption of higher-high / higher-low structure.
Holding FNGD.
