The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending a 50% cash 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.

This month’s allocation to U.S. equities is overweight Energy, Industrials, Health Care, Materials, Consumer Staples, Real Estate, and Utilities. The model is underweight Information Technology, Financials, Consumer Discretionary, and Communication Services. The sector allocations are determined using NDR’s Sector Model, where each sector has sector-specific, weight-of-the-evidence composites of fundamental, economic, technical, and behavioral indicators to determine the sector’s probability of outperforming the S&P 500.

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

Full strategy commentary: NDRSASDH202206061

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

Other posts

December 9: The Week Ahead

BY TEMATICA
All-time highs for everybody! Also, what will CPI and PPI updates tell us about the Fed? Read more →

S&P 500 Nears Overbought, Fed Heads & Inflation on Deck

BY TEMATICA
Equity futures point to a down market open later this morning,… Read more →

NDR Dynamic Allocation Strategy November 2022 Update

BY BRIAN SANBORN
Dynamic Allocation Strategy, indicators, weightings update Read more →
Back to all posts →