← Guides

How to learn sector rotation

Sector rotation is money moving from one group of stocks into another: out of software into chips, out of oil into solar, out of everything into staples. The way to learn it is not a textbook but a board that shows it happening. Watch 30 sector baskets re-rank every session, read breadth next to rank so you can tell a real rotation from one name, and look at the same board at the same times each day until the shapes become familiar.

Right nowTop basket Insurance +1.01% · 10 of 10 names greenTape 16 of 30 greenupdates every few minutes

The routine

  1. Watch the rank every session. The order of the 30 baskets is the rotation. A basket climbing from the bottom third to the top five over a few sessions is money arriving; the reverse is money leaving.
  2. Read breadth, not just rank. A basket can rank high because one name gapped. Breadth tells you whether the group agrees. Rotation you can lean on shows most names green.
  3. Learn the pairs. Some baskets trade against each other: oil and gas against solar, staples against consumer discretionary, the macro basket against risk. When one leads and the other lags, that is rotation with a story.
  4. Look back ten sessions. A single day is noise. The rank path over ten sessions and a month shows how long a move has been building, which is what tells you whether you are early or late.

Example

Over ten sessions from August 12 to August 25 the Rare Earth basket climbed from 30th of 30 to 5th on the close ranks, while several of the AI compute baskets drifted down the board. Nothing about that showed up in a single day; it was only visible as a path. Some members read the ten day view every morning for that reason.

Common questions

How is a sector ranked on the board?

By the average move of the whole basket, with breadth alongside, against the other 29 baskets, every few minutes during the session and again at the 4pm close. It comes from the tape, not from headlines.

How many sectors are there?

Thirty baskets, curated and versioned: the classic groups like banks, oil and gas and healthcare, and the thematic ones like quantum, space, nuclear and the AI compute stack.

How long does it take to learn?

Most members say the board reads itself after a couple of weeks of looking at it at the same times each day: the open, midday, and the close.

Is rotation predictable?

No, and this site never claims it is. What the board does is show rotation as it happens, often before it is written about, so the reader is watching the tape rather than reacting to the story.

Open the live boardThe board is free. Members get the names behind the movers, the alerts, and the ten day and one month views. Upgrade to Pro

More guides

About the sectors