Daily Decision Trading Update for 12.8.16


Welcome to the new Daily Decision Trading Service!


This new service is made up of 3 trading models: The CORE Model (risk-managed core holdings), The LEADERS Model (the top sectors), and The TRADING Model (an opportunistic trading strategy). Each model is traded separately live - in real time - on Marketfy. And the combination of all three models makes up the Daily Decision Trading Service's overall portfolio.


We hope you enjoy this new pro-level, hedge fund-like service, run by a professional trading team with more than 35 years of trading experience!


Cheers!
The Front Range Trading Team



The Early Take on the Market:
The talk on the street this morning is focused on yesterday's joyride to the upside and the ECB meeting. In case you missed it, "Super Mario" announced this morning that the ECB will extend the period of time the bank will buy bonds each month (aka their QE program) from March to December. At the same time, Draghi says the ECB will "taper" the amount of monthly purchases to €60 billion from the current rate of €80 billion. Traders here at home aren't exactly sure what to make of this so far, but the good news is the bulls appear to be trying to hold their ground in the early going.

Turning to our portfolio, we are now a bit underweight in the CORE exposure model (75% vs. 80%) due to the improvement in our indicators. However, with stocks overbought, we will likely exhibit some patience here.

There is no change the LEADERS model - we are holding our current positions instead of "chasing" the new leaders higher.

In the TRADING model, we have a small trade on, which now appears to be nicely in the green. We will continue to monitor this position closely.

Have a great day!



Daily Decision Trading Service
Current Portfolio Summary
The CORE Model

Position

Symbol
% of
Model
% of DDTS
Portfolio
Date
Purchased
Purchase
Price
Current
Rating
ProShares UltraPro S&P UPRO 25.0% 8.33% 12.1.16 $76.93 Hold
The LEADERS Model

Position

Symbol
% of
Model
% of DDTS
Portfolio
Date
Purchased
Purchase
Price
Current
Rating
SPDR Financials ETF XLF 33.3% 11.1% 12.1.16 $22.89 Hold
SPDR Technology ETF XLK 33.4% 11.1% 12.1.16 $46.64 Buy
SPDR Industrials ETF XLI 33.3% 11.1% 12.1.16 $62.82 Hold
The TRADING Model

Position

Symbol
% of
Model
% of DDTS
Portfolio
Date
Purchased
Purchase
Price
Current
Rating
ProShares Ultra S&P SSO 15% 5% 12.5.16 $73.89 Hold



% of Model Explained
The Daily Decision Trading Service (DDTS) is comprised of three models. The number shown in this column represents the percentage of the specific model the position represents.

% of DDTS Portfolio Explained
The Daily Decision Trading Service (DDTS) is comprised of three models. The number shown in this column represents the percentage of the overall portfolio (all 3 models combined) the position represents. (This percentage is shown to illustrate what the holding of the position would be if the DDTS was in a single account.)

Current Rating Explained
This is our rating for the day. The Current Rating tells you what action we would take if we did not currently hold the position. A "Buy" rating means we would be willing to purchase the position at current prices. A "Strong Buy" suggests this would be our first choice to buy. A "Hold" rating indicates we would not make new purchases at current levels. And a "Sell" rating indicates we will likely exit the position in the near-term.

Positions Can Change
Positions often change during the trading session. Remember that we will send a Trade Alert via SMS Text Message and/or Email BEFORE we ever make a move in the models.

About the Daily Decision Trading Service
Our easy-to-follow Daily Decision Trading Service is a modern, pro-level, multi-strategy, multi-manager approach that is made up of three models:

  • The CORE Model
  • The LEADERS Model
  • The TRADING Model

We start with THE CORE Model holdings. This risk-managed position is designed to provide the appropriate level of exposure to the U.S. stock market given the current risk/reward environment and makes up one-third of the overall DDTS portfolio. The goal of the CORE is to give us "the forest" and to stay in tune with the market's big, important moves. And when the bears come to call, the CORE is designed to take defensive measures by moving into capital preservation mode.

Next, we allocate one-third of the overall DDTS portfolio to THE LEADERS Model. This model focuses on the top sectors in the market. Because in short, when technology, biotech, the banks etc., start to heat up, we want to make sure we have an overweighted exposure to the market leaders.

And finally, one-third of the DDTS portfolio consists of THE TRADING Model. This model seeks trading opportunities based on swing-trading and mean-reversion strategies. These are designed to be short-term positions and the primary goal is simple: to add value via an opportunistic approach to trading!

When combined, the three models represent a modern, multi-strategy, risk-managed portfolio.

Cheers!
The Front Range Trading Team


Daily Decision Links:

Daily Decision Resource Page

Interactive Performance Details


NOT INVESTMENT ADVICE. The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Investors should always consult an investment professional before making any investment.

Posted to Daily Decisions Service on Dec 08, 2016 — 10:12 AM
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