Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy February 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.

Entering February, the sector model continued to overweight Value areas such as Energy, Materials, and Financials, as well as added more Growth-oriented Technology to its overweights. Real Estate also moved to a slight overweight. The prior month’s significant underweights in Consumer Discretionary and Communication Services were neutralized. Defensive sectors such as Consumer Staples, Health Care, and Utilities were recommended underweights, as well as cyclically oriented Industrials.

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

Full strategy commentary: NDRSASDH202302021

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

Other posts

Trump’s Bill Moves to the Senate, Flash May PMI Data on Deck

BY TEMATICA
Seeing an upswing in investment banking activity Read more →

C8 Hedge – Hedge with an Edge

BY JON WEBB
We are delighted to announce that C8 Technologies is launching a systematic FX hedging platform which helps businesses easily and effectively manage their currency exposures. C8 Hedge offers corporate treasurers and investment professionals precise guidance for actively and optimally managing their foreign exchange exposures across multiple currencies, using intuitive and simple to use online tools. Read more →

C8 Currency Compass – The end of the implied USD equity hedge? – May 2025

BY JON WEBB
European investors now own 15% of US stocks, whilst they have reduced EURUSD and GBPUSD hedges over the past 4 years, as any risk aversion from lower US equities has driven EURUSD lower - being underhedged counterbalances US equity returns. However, this did not work last Summer and the USD has been notably weak during the recent equity sell-off (see full discussion overleaf). With this correlation reversed, we note that European investors now find themselves underhedged their US equity exposure. It has been a volatile month for FX however the USD held key levels and recovered from the lows as US trade policy has become more measured.  The longer-term risks remain for USD, as the Administration attempts to rebalance the US economy, whilst positioning is structurally long USD. Read more →
Back to all posts →