The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending an allocation to cash. 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 remained with a mix of cyclical and defensive leadership during the month. Entering November, the sector model is overweight Communication Services, Utilities, Materials, and Industrials. Information Technology dropped to marketweight, while Energy and Real Estate improved to marketweight. Health Care and Financials joined Consumer Discretionary and Consumer Staples at underweight.

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

Full strategy commentary: NDRSASDH202311031

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

Other posts

C8 Weekly Bulletin – Adding Uncorrelated Returns

BY JON WEBB
With equity and bond markets having moved in tandem for the past few years, this week's Bulletin focuses on the potential to add uncorrelated returns to an equity/bond portfolio.   Read more →

Nvidia’s Guidance Weighs on Equity Futures

BY TEMATICA
Today brings another round of Fed speakers and retail earnings. Read more →

Thoughts From The Divide: Danger to Itself

BY JON WEBB
In an op-ed for MSNBC, the “former Federal Reserve economist” warned against the Fed keeping “interest rates too high for too long”, which would cause it to “fail at its job” and snatch defeat from the jaws of victory. Sahm argues that the economy is “on course” for a soft landing, but “Federal Reserve Chair Jay Powell is not flying the plane, despite the popular narrative” (which is a far kinder metaphor than Jay being a toddler in the back seat with a toy steering wheel). Sahm suggests that “giving the Fed credit means we could learn the wrong lesson”. Read more →
Back to all posts →