Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy August 2023 Update

Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy, model and allocations update.
BY BRIAN SANBORN

The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending a fully invested allocation. 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.

The sector model remained with a mix of cyclical and defensive leadership during the month. Entering August, the sector model is overweight Consumer Discretionary, as well as Health Care and Utilities. Information Technology dropped to marketweight. Materials, Industrials, Financials, Consumer Staples, Communication Services, and Real Estate are underweight.

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

Full strategy commentary: NDRSASDH202308021

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

Other posts

Thoughts From The Divide: A Giant Global Margin Call

BY JON WEBB
It’s possible to read too much into things. Consider it a flaw in our nature. But when we are told the “Worst of market sell-off might be over but hold on tight”, we can’t help but wonder about the hedged language. After all, if Goldman sees recent price action as prompted by a “giant global margin call”, surely the sell-off is an opportunity? Apparently not, as the GS note in question suggested that the flows they have seen were not consistent with “a ton of selling”. Is this diagnostically useful, and if so, in what way? If forced to offer an opinion (and we are), we would agree with GS that volumes have certainly not been indicative of capitulation. In fact, recent volatility might be better thought of as evidence of preternaturally low levels of liquidity. That in itself begs the question of why liquidity is so poor. August doldrums, or evidence of a Potemkin market? Read more →

Targeted Exposure Models From Tematica

BY TEMATICA
The Tematica Select Model Suite is now available. Get access to everything from Core holdings to the favorite companies of Cash Strapped Consumers to Nuclear Energy & Uranium, not to mention a Market Hedge and even some high yielding income models. Read more →

NDR Fixed Income Allocation Strategy April 2024 Update

BY BRIAN SANBORN
The NDR Fixed Income Allocation Strategy, Positioning Update Read more →
Back to all posts →