sector rotation for beginners

The problem

Identifying market leadership is difficult for non-institutional investors who lack expensive data terminals. Retail traders often entry sectors at their peak or hold laggards because they cannot quantify relative strength or macro alignment.

What it does

• Evaluates sector ETFs using price-to-market ratio charts to identify outperformance.
• Synthesizes macro indicators like interest rates and inflation into actionable sector biases.
• Filters noise using volume-based breadth checks and moving average persistence.
• Generates a numerical scorecard to rank sectors for monthly or quarterly rotation.

Why this beats prompting it yourself

General LLMs often provide vague financial advice or hallucinate complex technical indicators. This skill enforces a specific, disciplined ranking framework that balances price action with fundamental macro logic, preventing emotional trading decisions.

Use cases

• Identify which equity sectors to overweight in a monthly portfolio rebalance.
• Determine if a recent sector spike is supported by volume or is a bull trap.
• Scan for sectors that remain resilient during broad market downturns.
• Match current Federal Reserve policy to the most historically favorable industries.