Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy March 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.

Entering March, the sector model continued to overweight Value areas such as Energy, Materials, and Financials, and added more Growth-oriented Consumer Discretionary to its overweights. Interest-rate sensitive sectors such as Consumer Staples, Real Estate, Communication Services, and Utilities were recommended underweights, as well as cyclically-oriented Industrials and defensive Health Care.

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

Full strategy commentary: NDRSASDH202303021

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

Other posts

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 →

C8 Currency Compass – September 2024

BY JON WEBB
We are firmly in the 50bp rate cut camp – if  the Fed is worried about employment, they need to get ahead of the curve.  This is likely to put further pressure on the USD in the near term.  USDJPY has hit its downside target (see below) so the benefit is more likely to accrue to the EUR and GBP.  We also see the BoJ on hold this week, which adds weight to this view.  However, we note our systematic models still point to EURUSD and GBPUSD weakness over time, so any bounce may prove a good opportunity to add EUR and GBP hedges.  Read more →

C8 Weekly Bulletin: Trend Following

BY ROBERT MINIKIN
Central banks have had to act aggressively to contain inflation expectations - leading to an unwinding of excess global liquidity and divergent responses across asset classes.  A return to "normal" financial markets, with less policy support for asset prices and higher market volatility.  In this context, there is also new investor interest in trend-following strategies that exploit diverging market dynamics. C8 Studio contains both high quality trend-following indices and innovative combination technology. Read more →
Back to all posts →