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

Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy, model and allocations update.
BY BRIAN SANBORN

The Day Hagan/Ned Davis Research Smart Sector® with Catastrophic Stop strategy entered this month recommending a fully invested position. 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 maintained mixed leadership this month. Entering September, Health Care, Consumer Staples, Energy, and Utilities are above benchmark weight. Financials and Industrials dropped to marketweight. Real Estate, Communication Services, and Materials are below benchmark weight.

Full strategy commentary: NDRSASDH202409041

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

Other posts

Will the S&P 500’s Losing Streak Extend to Five Days?

BY TEMATICA
Nvidia's guidance offers something for the bulls and the bears, but here's our take Read more →

MI2 PartnersThoughts From The Divide: No Soup for Lu!

BY JON WEBB
Subscribers will not have been surprised by the return of the tariff monster. In our June Research Dossier, “When Fiscal Dominance Met De-Globalization” we wrote, In essence, Trump’s team decided that the correct sequencing involved getting the Big Beautiful Bill (BBB) deal across the line before subsequently circling back to tariffs. Doing it in this order prevents Congress from tying support for the budget to tariff special pleading, giving the Trump team much more freedom of manoeuvre. Moreover, the massive fiscal stimulus (CBO) implicit in the BBB presents an implicit case for budget hawks to reverse some of the fiscal damage with tariffs.” Read more →

C8 Currency Compass – September 2024

BY JON WEBB
We are firmly in the 50bp rate cut camp – if  the Fed is worried about employment, they need to get ahead of the curve.  This is likely to put further pressure on the USD in the near term.  USDJPY has hit its downside target (see below) so the benefit is more likely to accrue to the EUR and GBP.  We also see the BoJ on hold this week, which adds weight to this view.  However, we note our systematic models still point to EURUSD and GBPUSD weakness over time, so any bounce may prove a good opportunity to add EUR and GBP hedges.  Read more →
Back to all posts →