Sector rotation is one of the most reliable patterns in the market. When the economy is expanding, money flows into cyclicals and growth. When it's contracting, money hides in defensives and utilities.
The Four Quadrants
Leading — Sectors gaining relative strength while the market trends up. These are your best long candidates. Think tech in a bull market, energy during an inflation cycle.
Weakening — Sectors that were leading but are starting to lose momentum. Time to tighten stops and take profits.
Lagging — Sectors with poor relative strength in a weak market. Avoid or short these.
Improving — Sectors starting to gain relative strength from a low base. These are early-stage rotation plays — high risk, high reward.
How MAC Terminal Helps
The Sector Rotation card in the Overview tab shows you exactly where money is flowing right now. Each sector is classified into one of the four quadrants, and you can click into any sector to see the top-performing stocks within it.
The key: fish where the fish are. Don't fight sector headwinds — trade the sectors that have institutional money flowing into them.