The Early Take on the Market:
The U.S. Dollar, Fed policy, options expiration, and Russia are the focal points on this third Friday in December. Don't look now fans, but "King Dollar" has resumed its charge higher since the election and closed Thursday at a 14-year high against a basket of 16 major currencies. The problem here is three-fold. First, a rising dollar tends to hamper economic growth in terms of exports. Second, a stronger greenback makes trillions of dollar-denominated debt around the world tougher to pay back. And finally, a higher dollar negatively impacts the bottom lines of multinational corporations. And since a great many of the S&P 500 companies do business globally, the strength in the dollar remains something to watch. Next up is the Fed. Although there has been plenty of analysis on this week's FOMC meeting, the ongoing rally in the dollar is expected to become a factor in future Fed policy. And while the "dot plot" suggests three rate hikes in 2017, if the dollar continues to strengthen, some analysts believe that number could fall. Next up this morning, let's recognize that today is a "quad witch" options expiration session, where strange things can happen. As such, don't be surprised if we see intraday volatility. Then there is Russia. It is widely reported this morning that Russian hackers actualy failed to penetrate the GOP computer network during this year's Presidential campaign. This is in stark contrast to the successful hack of the DNC's network, where the attack was significantly more aggressive and persistent. While this story isn't likely to impact markets in any way, it does raise the question of data security in today's economy. Looking at the futures, stocks look to open slightly higher and bond yields are ever-so slightly lower at the current time with the U.S. 10-Year currently at 2.568%, which is down from yesterday's high of 2.621%.

Turning to our portfolio, the CORE exposure model is now a smidge below the recommended exposure (75% vs. 81%) due to the fact that our cycle composite now points higher into the end of the year. However, since we currently have 93% of the recommended exposure level in place, we will not be in any rush to make a move.

No change. We are standing pat with our current positions in the LEADERS model and will review on Monday afternoon.

In the TRADING model, we continue to look for a solid "set up" for a trade. However, with the situation on the calendar, this may prove problematic. But we will continue to look for an opportunity.

Note: The TRADING model is not designed to do "market timing," instead, it attempst to add value to the portfolio through low-risk trading opportunities.

Have a great day!

% 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

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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.