2018 Performance Update: Daily Decision LEADERS
+24.1%
(vs. S&P 500
19.7%)
Today's Model Review:
LEADERS Model: The LEADERS currently holds positions in the Technology, Industrials, Health Care, and Financial sectors. Heads up - given the rotation occurring in market leadership, we are going to expand our holdings to improve diversification/reduce risk. We will be looking for an opportunity to make the moves this week. The idea here is simple. When sector rotation occurs, it is difficult to determine the difference between long-term, sustainable leadership and what I call "hedge fund follies" (aka a quick trade). So, in a rotational environment (where it is VERY easy to get whipsawed and beaten up), the plan is to diversify your holdings and wait for true leadership to emerge.
CORE (Risk Managed Exposure) Model:
Today's CORE model's exposure is largely in line with the current target at 90% vs. 115%. As a reminder, the goal of this model is to stay in tune with the overall risk/reward environment. Therefore, we make adjustments only when there is a meaningful and sustained divergence between the target model reading and our current positions.
TRADING Model: We currently hold trades in the Russell 2000, India Small Caps, Eurozone, a dividend-payer ETF, and the emerging markets. Look for a trade coming here soon as well as we look to upgrade the FVD position.
Below are the current holdings of each model portfolio:
Daily Decision Trading Service
Current Portfolio Summary | ||||||
The LEADERS Model | ||||||
Position | ETF Symbol | % of Model | Date Purchased | Purchase Price | Current Rating | |
Technology Select Sector SPDR | XLK | 25% | 12.1.16 | $46.64 | Buy | |
Industrial Select Sector SPDR | XLI | 25% | 8.14.17 | $68.58 | Buy | |
Health Care Select Sector SPDR | XLV | 25% | 11.27.17 | $81.79 | Buy | |
Financial Select Sector SPDR | XLF | 25% | 12.12.17 | $28.19 | Buy | |
The CORE EXPOSURE Model | ||||||
Position | ETF Symbol | % of Model | Date Purchased | Purchase Price | Current Rating | |
ProShares UltraPro S&P (3X) | UPRO | 30.00% (Equiv 90% Long) |
Various | $98.78 | Buy | |
The TRADING Model | ||||||
Position | ETF Symbol | % of Model | Date Purchased | Purchase Price | Current Rating | |
iShares Eurozone ETF | EZU | 20% | 5.11.17 | $40.25 | Buy | |
First Trust Value Line Dividend Fund | FVD | 20% | 5.11.17 | $28.88 | Buy | |
iShares Emerging Markets ETF | EEM | 20% | 6.112.17 | $41.57 | Buy | |
VanEck Vectors India Small-Cap Index ETF | SCIF | 20% | 7.18.17 | $58.00 | Hold | |
iShares Russell 2000 ETF | IWM | 20% | 10.19.17 | $146.09 | Buy | |
% 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 Models:
The Daily Decision is designed to be a simple, easy-to-follow e-letter service showcasing 3 different model portfolios. The LEADERS model is the flagship, growth oriented strategy that focuses on "where the action is" in terms of market leadership. The CORE model is a longer-term, risk-managed approach to keeping exposure to market risk in line with prevailing conditions. And as the name implies, the TRADING model is intended to be a tactical, opportunistic trading strategy.
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.