The Daily Decision for 6.19.17

The Early Take on the Market:

Although the ECB and FOMC Meetings are over and rates have been increased in the U.S., the Fed remains a focal in the markets due to the fact that we have a full calendar of Fed-speak on tap for this week. For example, at 8:00 a.m this morning, Federal Reserve Bank of New York President, William Dudley will speak, with Chicago Fed President Charles Evans scheduled to speak at 7:00 p.m. Then tomorrow, Vice Chairman Stanley Fischer, Boston Fed chief Eric Rosengren, and Dallas Fed President Robert Kaplan will all speak. And Governor Jerome Powell and St. Louis Fed President James Bullard are on the calendar later in the week. The questions that investors want more information on include (a) what the "unwind" plans for the Fed's balance sheet will look like and (b) if any FOMC members favor additional rate hikes in 2017.

Turning to our portfolio...

LEADERS Model: The LEADERS Model made an adjustment last week (Wednesday) by taking profits in our position in Consumer Discretionary (XLY) and replacing it with Healthcare (XLV). Thus we currently hold Technology, Healthcare, and Materials. As for performance, we continue to be pleased with the results of the model versus the S&P 500. The LEADERS model is up 10.6% ytd compared to 8.7% for S&P 500.

CORE EXPOSURE Model: The CORE model's exposure is a bit below today's target at 50% vs. 60%. Note that it is the weakness in the big-picture models that is keeping the exposure limited. However, given the recent signs of improvement, we may increase exposure in the near-term.

TRADING Model: We currently hold trades in oil, the Eurozone, and a dividend ETF.

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.



Daily Decision Trading Service
Current Portfolio Summary
The LEADERS Model

Position
Target
Exposure
ETF
Symbol
% of
Model
Date
Purchased
Purchase
Price
Current
Rating
Health Care Select Sector SPDR 33.3% XLV 33.3% 6.14.17 $77.84 Buy
Technology Select Sector SPDR 33.4% XLK 33.4% 12.1.16 $46.64 Strong Buy
Materials Select Sector SPDR 33.3% XLB 33.3% 3.17.16 $52.38 Buy
The CORE EXPOSURE Model

Position
Target
Exposure
ETF
Symbol
% of
Model
Date
Purchased
Purchase
Price
Current
Rating
ProShares UltraPro S&P (3X) 50% UPRO 16.67% 12.1.16 $80.79 Buy
The TRADING Model

Position
Target
Exposure
ETF
Symbol
% of
Model
Date
Purchased
Purchase
Price
Current
Rating
United States Oil Fund 20% USO 20% 4.25.17 $10.23 Strong Buy
iShares Eurozone ETF 20% EZU 20% 5.11.17 $40.25 Buy
First Trust Value Line Dividend Fund 20% FVD 20% 5.11.17 $28.88 Buy



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



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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.

Posted to Daily Decision Trading Se... on Jun 19, 2017 — 9:06 AM
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