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Sector Rotation Map Usage

To get the most out of this tool, follow these strategic guidelines for identifying and acting on sector trends.

  • Identify Leadership: Look for sectors in the Leading phase with high Relative Volume (RV) to confirm institutional conviction.

  • Early Cycle Plays: Watch for Technology (XLK) and Consumer Discretionary (XLY) to enter the Leading phase as economic conditions shift from Recession to Early Recovery.

  • Defensive Rotation: If Utilities (XLU) and Consumer Staples (XLP) begin Improving while growth sectors fade, it may signal a transition into a Recessionary phase.

  • Momentum Trading: Focus on sectors that are both in the Leading phase and show increasing Relative Strength values.

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