To review, the NEW Daily Decision Portfolio is designed to be a risk-managed, multi-strategy approach to the markets.
To start, 50% of the portfolio is allocated to our Risk Managed Growth strategy, which itself is comprised of 3 management strategies (with each position representing 1/3 of that portion of the portfolio). This is a longer-term "core" strategy that is designed to focus on market leadership during bull markets and reduce exposure to risk during bear markets.
Next, 20% of the portfolio is allocated to our Market Leadership strategy, which has proven very successful since inception.
And finally, 30% of the portfolio is dedicated to 10 Top Gun stocks. In short, these are our favorite names in leading industries.
As we mentioned earlier in the week, we are currently in the process of building out the portfolio. While we believe the market could correct in the near-term, we also need to make sure we have positions in place to benefit from any advance.
Thus, we have taken full positions in the Risk Managed Growth and Market Leadership allocations. As a side note, the Risk Managed Growth strategy currently has a modestly defensive position, with 17% of the allocation in the safety of cash.
Then this morning, we decided to take initial positions in our Top Gun stocks. The idea is to establish a base position and then build on to the position when opportunities present themselves
After this morning's trades, the current portfolio has been established and looks like this:
Next, we will begin "managing" the positions on a daily basis. As stated, we will be on high alert for opportunities to add to our stock positions.
All the best,
The Front Range Trading Team
At the time of publication, the editors held long positions in the following stocks mentioned: AAPL, MSFT, GOOGL, AMZN, FB, SPGI, JPM, PFGC