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.