The Early Take on the Market:
With the number of trading days left in calendar year 2016 dwindling fast, the question of the day is if the post-election melt-up will continue or if traders will decide to do some profit-taking before the New Year's celebration continues. Things are fairly quiet in the early going this morning with the only real news items worthy of note include the offical vote in the electoral college and the softer trade in both yields and the U.S. dollar. Traders also continue to monitor the action in the oil market as supplies and macro forecasts continue to be in focus. In terms of our overall view on the market, we believe that stocks are overbought and due for a rest, but that the dips should be bought here.

Turning to our portfolio, the CORE exposure model is now a smidge below the recommended exposure (75% vs. 80%). However, as we've been saying, we will not be in any rush to make a move.

We will be reviewing the positions in the LEADERS model later today.

In the TRADING model, while we hate to sound like a broken record, there are times when patience is required. Thus, we continue to look for a solid "set up" for a trade but are not going to force anything at this time of year.

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

Publishing Note: I am traveling the first half of the week and then the Holiday Season arrives shortly thereafter. During this time of year, I like to take a break from the keyboard and recharge the batteries. So for the next couple weeks, the morning report will be sporadic - but rest assured that we will send trade alerts whenever we make a move.

Here's wishing you and yours a Happy Holiday Season!

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.