The Early Take on the Market:
Good Monday morning and welcome back. Politics in D.C., China, BREXIT plans, and France are in the news this morning. The good news on this first day of May is that the U.S. Government will not be at risk of shutting down (well, until the end of September, that is), as House and Senate negotiators appear to have reached a bipartisan deal on a $1.16 trillion spending bill. The vote on the bill could be held mid-week. In other news, China's primary gauge of factory production came in short of expectations. China's Manufacturing PMI came in 51.2 in April, which was down from March's 51.8 (an almost 5-year high) and below the estimates for a reading of 51.7. The services PMI also fell, coming in at a 6-month low of 55.1. (Recall that readings over 50 indicate expansion and below 50, contraction.) Next, the EU summit in Brussels ended with U.K. PM Theresa May's expectations for post-BREXIT trade being referred to as unrealistic. And lest we forget, France's Presidential run-off election is just 6 days away. And so far at least, markets appear to be none the worse for wear to start the week.

Turning to our portfolio...

LEADERS Model: The LEADERS Model currently holds Technology, Consumer Discretionary, and Materials and we continue to be pleased with the outperformance of the model versus the S&P 500 (the LEADERS is up 8.7% ytd vs. 6.5% for S&P 500).

CORE EXPOSURE Model: With the major indices stuck in a trading range, our indicators have been flip-flopping quite a bit lately. This morning, the CORE model's exposure is above the model's recommended level at 50% vs. 25%. As such, we will be watching the action closely.

TRADING Model: We remain cautious from a trading standpoint but continue search for lower-risk entry points.

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.

How To Use the DDTS Models: We trade the 3 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.

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:
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.