The Early Take on the Market:
Despite the headlines touting the NASDAQ's march to new highs on a daily basis, it is important to note that the rest of the major indices are currently stuck in a sideways trading range. In addition, we would be remiss if we ignored the fact that stocks are currently overbought and sentiment readings are at extreme levels. So, unless/until the S&P 500, the DJIA and the Midcap/Smallcap indices can break out of their respective ranges, some caution would appear to be warranted in the near-term.

Turning to our portfolio...

We remain largely in line with the recommended exposure level from our CORE model at (60% vs. 70%). So, we prefer to utilize a "do nothing, absolutely nothing, until there is something to do" approach at this time.

We will review the current market leaders for the LEADERS Model again this afternoon. However, given the current whipsaw environment, it is important not to be hasty or to "chase" things here.

While it may be boring, we remain on hold in the TRADING model. However, we will continue to monitor the situation closely and be on the lookout for short-term opportunities. But frankly, at this stage, we would prefer to buy a dip.

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.

Portfolio Note: The DDTS Portfolio is intended to consist of all 3 models - we trade the models independently to make things easier to follow.

Have a great day!

Target Exposure Explained
This column is the goal percentage in terms of the overall exposure for the model. This is shown due to the fact that we utilize leveraged ETFs.

% of Model Explained
The number shown in this column represents the percentage of the the model this position represents.

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.