Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy July 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 began to shift toward a mix of cyclical and defensive leadership during the month. Entering July, the sector model is overweight cyclical sectors such as Information Technology, Consumer Discretionary, and Industrials, as well as defensive sectors like Health Care and Utilities. Energy, Communication Services, and Real Estate moved to marketweight. Materials, Financials, and Consumer Staples remain underweight.

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

Full strategy commentary: NDRSASDH202307061

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

Other posts

Thoughts From The Divide: Signs of Life

BY JON WEBB
For those of us who regularly follow the “wonksphere” on social media, it’s been hard to ignore the pushback against the doom and gloom that economic sentiment surveys have consistently reported. Commentators like Stancil and Sahm have bitterly complained about the disconnect between the public’s negative perceptions relative to the hard economic data, which is ostensibly pretty good. In this, they have been carrying water for policymakers like Lael Brainard, who have attempted to burnish the Administration’s economic achievements to push back against the negative perception of the economy. The most obvious of those achievements is the decline in inflation – see, we told you it was transitory! Read more →

Thoughts From the Divide:  Tremendous

BY JON WEBB
While there is likely some argument within the Administration as to whether supply chain shocks are both necessary and sufficient or simply necessary (mirrored by the Fed’s own divergence in views), it’s clear that Yellen and the White House are not too concerned about the Philips Curve, nor seem to put stock in John Cochrane’s “fiscal theory of the price level”. After all, Yellen is still quoted as saying that the US is on a responsible fiscal path, despite the deficit (which is, as Mosler notes, the public’s surplus). Or perhaps they think that with some proper cajoling, the greedflation genie can be put back in the bottle (at least temporarily) as CEO’s find a renewed sense of civic virtue and community? We wouldn’t hold our breath. Read more →

C8 Weekly Bulletin:  Thor Financial now available on C8 Studio

BY JON WEBB
C8 Technologies is pleased to announce that five indices derived from Thor Financial Technologies will now be available through the C8 platform. The strategies will be available to C8 clients to be accessed through direct indexing and will be fully included in C8 studio and thus available to be combined with other strategies and allocations optimized to create complete portfolio solutions for clients. Read more →
Back to all posts →