Electrical sheathing removal for pool light?
ABSOLUTELY NOT!

You should not be using cable or cord for ANY wiring to and for a pool light, with the exception of wiring that is within a building or structure. An insulated green ground is mandatory. The only exception to this is the cord that comes factory attached to a wet-niche type underwater light (luminaire).

PLEASE read up on the codes involved with pool wiring, it is NOT a place you want to mess around or cut corners!


  680.23 Underwater Luminaires
  
  This section covers all luminaires installed below the normal water level >of the pool.
  
  (F) Branch-Circuit Wiring.
  
  (1) Wiring Methods.
  
  Branch-circuit wiring on the supply side of enclosures and junction
  boxes connected to conduits run to wet-niche and no-niche luminaires,
  and the field wiring compartments of dry-niche luminaires, shall be
  installed using rigid metal conduit, intermediate metal conduit,
  liquidtight flexible nonmetallic conduit, rigid polyvinyl chloride
  conduit, or reinforced thermosetting resin conduit. Where installed on
  buildings, electrical metallic tubing shall be permitted, and where
  installed within buildings, electrical nonmetallic tubing, Type MC
  cable, electrical metallic tubing, or Type AC cable shall be
  permitted. In all cases, an insulated equipment grounding conductor
  sized in accordance with Table 250.122 but not less than 12 AWG shall
  be required.
  
  Exception: Where connecting to transformers for pool lights, liquidtight flexible metal conduit shall be permitted. The length
  shall not exceed 1.8 m (6 ft) for any one length or exceed 3.0 m (10
  ft) in total length used.
  
  (2) Equipment Grounding.
  
  Other than listed low-voltage luminaires not requiring grounding, all
  through-wall lighting assemblies, wet-niche, dry-niche, or no-niche
  luminaires shall be connected to an insulated copper equipment
  grounding conductor installed with the circuit conductors. The
  equipment grounding conductor shall be installed without joint or
  splice except as permitted in (F)(2)(a) and (F)(2)(b). The equipment
  grounding conductor shall be sized in accordance with Table 250.122
  but shall not be smaller than 12 AWG.
  
  Exception: An equipment grounding conductor between the wiring chamber of the secondary winding of a transformer and a junction box
  shall be sized in accordance with the overcurrent device in this
  circuit.
  
  (a)   If more than one underwater luminaire is supplied by the same
  branch circuit, the equipment grounding conductor, installed between
  the junction boxes, transformer enclosures, or other enclosures in the
  supply circuit to wet-niche luminaires, or between the field-wiring
  compartments of dry-niche luminaires, shall be permitted to be
  terminated on grounding terminals.
  
  (b)   If the underwater luminaire is supplied from a transformer,
  ground-fault circuit interrupter, clock-operated switch, or a manual
  snap switch that is located between the panelboard and a junction box
  connected to the conduit that extends directly to the underwater
  luminaire, the equipment grounding conductor shall be permitted to
  terminate on grounding terminals on the transformer, ground-fault
  circuit interrupter, clock-operated switch enclosure, or an outlet box
  used to enclose a snap switch.