TechDev Newsletter - Market Update Issue #84

Sector Selection: Positioning for the Next Leg

The local bottom continues to develop. We’re approaching the window for the relief rally I’ve been anticipating - likely materializing in the final days of December or very early January. Once that bounce confirms, I’ll provide an updated read on the Relief Rally Meter and the subsequent path toward our projected Q1 2026 double bottom.

Today’s primary focus, however, isn’t on the short-term gyrations. It’s on something that will matter far more for your returns over the next 12-24 months: sector selection.

As I discussed last issue, the altcoin market is more congested and complex than ever before. Thousands of tokens compete for capital across dozens of narratives. In this environment, choosing the right sectors will separate those who capture substantial gains from those who watch the market rise while their holdings underperform.

I’ve spent considerable time constructing sector indices where none existed in TradingView over a long enough time horizon - selecting tokens with sufficient chart history to produce reliable reads. What emerged is a clear hierarchy of opportunity, from continuation plays in established sectors to deep-discount compression patterns in beaten-down categories.

This analysis will help you understand not just which sectors I believe offer the best risk-adjusted returns, but why the charts point to these conclusions. I’ll also present five sample portfolios across the risk spectrum, complete with specific token allocations, so you can position according to your own risk tolerance.

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Today’s Topics

Market Update

• Ethereum

• Bitcoin

• Low Timeframe Structure

Sector Analysis

• Layer 1: The Continuation Play

• DeFi: Strength in Structure

• AI: High Risk, High Reward

• RWA: Compression Ready to Release

• DePIN: Deep Discounts, Deep Opportunity

Sample Portfolios

• Portfolio Construction Philosophy

• Five Portfolios Across the Risk Spectrum