The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy remains fully invested. The NDR Catastrophic Stop model is based on the combination of two proprietary composites: 1) the Internal Composite (technical and price-related indicators) and 2) the External Composite (fundamental, economic, interest rate, and behavioral/sentiment indicators). Each composite is one-half of the overall score.

This month’s allocation to U.S. equities is overweight Energy, Information Technology, Utilities and underweight Communication Services, Materials. The sector allocations are determined using NDR’s Sector Model, where each sector has sector-specific, weight-of-the-evidence composites of fundamental, economic, technical, and behavioral indicators to determine the sector’s probability of outperforming the S&P 500.

Click the link below to read more about the strategy’s positioning.

Full strategy commentary: NDRSASDH202108051

Visit the Day Hagan research page for access to additional commentary and webcasts.

Other posts

Thoughts From The Divide: The Undead

BY JON WEBB
“Why is it people got so incensed about the reason why inflation might be happening?” Happy Halloween! Tis the season for ghouls, gremlins and zombies, so perhaps we should not be so surprised that even President Biden has gained a taste for flesh! (Though it’s not the first time?) We kid of course, but one might be forgiven for suspecting “Irish Alzheimer’s”, given the latest “garbage” gaffe/misstep. Of course, Trump is not one to miss an opportunity. This comes at an inopportune time as the election heats up with various election-related stories battling for headlines. Voter fraud! Early voting shenanigans! Election market manipulation! Some might joke that POTUS himself would be hard to pick out among the ranks of the undead (we would never stoop so low …), but the more intriguing zombie speculation is the election. It wouldn’t be the first time the lawyers have found ways to keep the monster alive. This got us thinking about the economic issues which just refuse to give up the ghost and have yet to be settled: “undead” topics that just won’t die! Read more →

Thoughts From The Divide: Is it safe?

BY JON WEBB
We were very sad to see that Warren Mosler has decided to take an extended break from posting on X. Mr Mosler has helped inform our views about the overall policy stance. Most of all, Mosler was right: tight monetary policy did not stop the economy, and those who bet on that lost. Fiscal was certainly a factor, although reasonable people might debate how much of a factor. But with Fed officials mostly of like mind in thinking it is time to cut rates (see quote above), the question we find ourselves asking is whether it is finally safe to bet against Mosler. Or, to put it another way, “Is the U.S. consumer tapped out?”. Read more →

NDR Dynamic Allocation Strategy March 2023 Update

BY BRIAN SANBORN
Dynamic Allocation Strategy, indicators, weightings update Read more →
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