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 May, the sector model is overweight defensive sectors such as Health Care, Utilities, and
Energy. Information Technology dropped to marketweight. All other sectors are underweighted with significant drops in allocation to Real Estate and Financials.

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

Full strategy commentary: NDRSASDH202305021

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

Other posts

Thoughts From the Divide: Avoiding the Inverse

BY JON WEBB
Along with the release of the January Fed minutes this week, there was a deluge of Fed Speak, with Jefferson, Harker, Waller, and Cook all opining on the outlook for cuts. Most of the refrain was along the lines of Powell’s need for “confidence”, with Waller saying that he needed “to see at least another couple more months of inflation data” and Cook echoing the idea, saying that “as we gain greater confidence that disinflation is ongoing and sustainable, that changing outlook will warrant a change in the policy rate”. Harker pushed back on immediate cuts, asking for markets to “just give us a couple of meetings”, following up by saying, “I would caution anyone from looking for it right now and right away”. But while there may be some pushback on timing, that cuts are coming appears to be very much fait accompli in the mind of the Fed. Read more →

Day Hagan/NDR Smart Sector® with Catastrophic Stop Strategy December 2024 Update

BY BRIAN SANBORN
The sector model maintained mixed leadership this month. Entering December, Consumer Discretionary, Financials, and Utilities are above benchmark weight. Communication Services improved to marketweight. Information Technology, Real Estate, Industrials, Materials, Energy, Consumer Staples, and Health Care are below benchmark weight. Read more →

MI2 Partners Thoughts From The Divide: Who Blinked First?

BY JON WEBB
Some might think it academic, but we can’t help being curious about who blinked first. There are at least two games of chicken we have been closely watching. Clearly, everyone is watching the game of chicken between Xi and Trump. However, the casual observer might think there was also one involving Powell and Trump. In the case of Xi, its not entirely clear who blinked first. Read more →
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