Usage

Sector ETF Flows Usage

The Sector ETF Flows indicator is best used to identify macro market trends and sector leadership, helping you decide where to allocate capital for the highest probability of success.

How it works

The indicator calculates the end-of-day balance changes for the selected sector ETFs. Depending on the chosen "Plot Mode", it either displays the net dollar change (Inflows/Outflows) or calculates the percentage share of a specific sector relative to the total group (Dominance). This raw data is then smoothed using a configurable SMA (Mean Length) and can be statistically normalized using a rolling Z-Score to highlight significant accumulation or distribution events.

Interpreting the Data

• Inflows & Outflows: Consistent net inflows into growth sectors (like Technology and Consumer Discretionary) indicate a strong "risk-on" environment. Large outflows from these sectors combined with inflows into defensive sectors (like Utilities and Staples) signal a "risk-off" rotation and potential broader market weakness.
• Dominance Mode: Monitoring Sector Dominance helps identify leadership. A rising dominance in Financials and Industrials often accompanies an early-cycle economic recovery, while rising dominance in Technology suggests late-cycle momentum.
• Using the Dashboard: The dashboard provides a quick snapshot across multiple timeframes (7D to 365D). Green highlights indicate positive flows, while red indicates negative flows. Look for sectors that are turning green on the short-term (7D/14D) while already possessing strong long-term (90D+) inflows to find high-momentum trends.