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.

The sector model remained with a mix of cyclical and defensive leadership during the month. Entering October, the sector model is overweight Information Technology, Communication Services, and Utilities. Health Care and Financials remained marketweight. Industrials and Energy joined Consumer Discretionary, Consumer Staples, Materials, and Real Estate at underweight.

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

Full strategy commentary: NDRSASDH202310031

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

Other posts

NDR Dynamic Allocation Strategy December 2024 Update

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

January 27: The Week Ahead

BY TEMATICA
DeepSeek Rattles AI, The Fed, Looming Trump Tariffs Read more →

Thoughts From the Divide: The (Golden) Path

BY JON WEBB
While the road to hell is paved with good intentions, it appears that the “golden path” to a soft landing (which by way of reminder is a “triumph of hope over experience”, if you ask Mr. Summers) is paved with rate cuts. In an interview earlier this week, the Chicago Fed president Austan Goolsbee cast another vote in favor of “adjustment cuts”, saying that “You risk the golden path if you are going to be as restrictive as we are now”. Meanwhile, Jerome Powell was quick to assure the audience during his latest interview that “today I am not going to be sending any signals, one way or the other on any particular meeting” as far as rate cuts are concerned. However, that did not prevent the Chair from referring to ol’ reliable of monetary policy, “long and variable lags”, to explain why, “if you wait until inflation gets all the way down to 2%, you’ve probably waited too long”. Read more →
Back to all posts →