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 moved more cyclical during the month. Entering June, the sector model is overweight cyclical Growth sectors such as Information Technology, Communication Services, and Consumer Discretionary, as well as Utilities. Industrials moved to marketweight. All other sectors are underweighted with significant drops in allocation to Health Care and Financials.
Click the link below to read more about the strategy’s positioning.
Full strategy commentary: NDRSASDH202306061
Visit the Day Hagan research page for access to additional commentary and webcasts.