The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending a fully invested position. 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 had some rotation this past month. Entering February, Financials, Health Care, Industrials, Consumer Discretionary, and Utilities are above benchmark weight. Energy improved to benchmark weight. Information Technology, Communication Services, Real Estate, Materials, and Consumer Staples are below benchmark weight.

Full strategy commentary: NDRSASDH202502041

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

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“It’s obvious that there’s going to be stress and losses”. The comment is from Janet Yellen’s comments this week and comes from the discussion of the ongoing CRE dumpster fire. Stress and losses aside, the Treasury Secretary was unruffled, following up with the comment, “I hope and believe that this will not end up being a systemic risk to the banking system.” Yellen did admit that size matters. While “The exposure of the largest banks is quite low,… there may be smaller banks that are stressed by these developments” Read more →

NDR Fixed Income Allocation Strategy July 2024 Update

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Thoughts From The Divide: The Undead

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