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
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