The Early Take on the Market:
The comeback, the immigration situation, the French election, and Germany's economic data are in focus on this fine Monday morning. First, love 'em or hate 'em, you have to respect the biggest comeback in Super Bowl history by the New England Patriots. Next up is the growing issue of the election in France. While there are serioud doubts about her ability to win the Presidency, Marine Le Pen (the far-right candidate) unveiled her manifesto over the weekend, which included making the Bank of France independent, restoring a national currency, and a wide range of protectionist measures. Also across the pond, the data on Germany's economy continues to be good as factor orders surged by 5.2% in December, the most since 2014. Here at home, traders may be a bit distracted yet this morning, but futures currently point to a weak open on Wall Street.

Turning to our portfolio...

LEADERS Model: Since it is Monday, we will look at the rankings and review the holding in the model. So far at least, we've held the "right stuff" in the model and have outperformed the S&P.

CORE EXPOSURE Model: The indicators are strengthening a bit within our longer-term, core exposure models, which means that we find ourselves a bit light compared to the recommended exposure for the model at 75% vs. 90%. Thus, we will be looking for an opportunity to add exposure.

TRADING Model: We currently hold two "momentum breakout trades" in the materials sector and the emerging markets, and are currently looking for "insider buying" trades this week. So keep your eyes peeled for a trade alert.

How To Use the DDTS Models: The DDTS is designed to be a modern, multi-strategy, risk-managed portfolio. Thus, the overall portfolio is a combination of all 3 models. However, we trade the models independently to allow for the use of the models on a standalone basis. If we were to choose just one model to follow, it would be the LEADERS for growth orientation, the CORE for a more conservative, risk managed approach, and the TRADING model for an opportunistic "value-add" approach.

Note: The TRADING model attempts to add value to the portfolio through what are perceived to be low-risk trading opportunities and is not intended to be a "market timing" strategy.

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.

Wishing You All The Best in Your Investing Endeavors!

The Front Range Trading Team

Daily Decision Links:
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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.