Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy June 2022 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 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

Putin Renews Geopolitical Tension, Walmart Earnings

BY TEMATICA
The S&P 500 Outlook - Bank of America vs. Goldman Sachs Read more →

Thoughts From The Divide: The Harvest

BY JON WEBB
Even in times of turmoil (see President Lincoln’s Thanksgiving Day Proclamation), fall is a time to give thanks. And what should we be more thankful for than the gift of shopping? Retail sales reflected “continued resilience in the American consumer” and one might think recent Fed surveys are indicative of a new sense of optimism? The Empire Fed Manufacturing Survey’s headline index “shot up forty-three points to 31.2, its highest reading in nearly three years, and the six-month outlook showed that “firms remained optimistic about future conditions”. The Philadelphia Fed survey was not quite as ebullient in its reading of the current environment, the headline index dropping from 10.3 to -5.5 (a section headline drily noting “Most Current Indicators Soften”), but, on balance, the sense of optimism was palpable and mirrored the Empire Fed, (“Most Future Indicators Rise”) with the future activity jumping “from 36.7 to 56.6 in November, its highest level since June 2021”. Read more →

February 18: The Week Ahead

BY TEMATICA
A short week, but some good earnings insights ahead Read more →
Back to all posts →