Based on the May model update, the Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy remains fully invested. 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 has overweights on Financials and Real Estate and underweights on Industrials and Information Technology. 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: NDRSASDH202105051

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

Other posts

NDR Dynamic Allocation Strategy July 2023 Update

BY BRIAN SANBORN
Dynamic Allocation Strategy, indicators, weightings update Read more →

Thoughts From the Divide:  Subjest to Change

BY JON WEBB
As the saying goes, “needs must when the devil drives”. We have no problem understanding the Fed’s decision to announce (at 7pm last night) that the details of the BTFP program needed to be altered. The problem was the overly juicy arbitrage, whereby banks could use the BTFP window to flip cash from the Fed into the RRP and pocket the not-insubstantial difference. We were impressed by the chutzpah involved in arbitraging two Fed facilities! Read more →

C8 Hedge – Hedge with an Edge

BY JON WEBB
We are delighted to announce that C8 Technologies is launching a systematic FX hedging platform which helps businesses easily and effectively manage their currency exposures. C8 Hedge offers corporate treasurers and investment professionals precise guidance for actively and optimally managing their foreign exchange exposures across multiple currencies, using intuitive and simple to use online tools. Read more →
Back to all posts →