Sector Rotation Signals from ETF Performance, RSI, and Volume
Summary
This indicator compares six sector ETFs with the S&P 500 proxy, displaying each fund’s daily performance, RSI, volume relative to its lookback average, and one-bar direction. It identifies the strongest and weakest sectors and flags a potential rotation when their performance gap exceeds a threshold. It also marks a risk-off pattern when consumer staples and utilities are positive while technology is negative, and reports elevated volume when any tracked fund’s volume ratio crosses its threshold.
The summary suggests stocks associated with the strongest sectors for longs and those associated with the weakest sectors for shorts. These are rule-based watchlists, not tested trade signals: the script supplies no performance results, position sizing, or exit rules. Although it offers selectable timeframes and a summary display, its RSI and volume measures provide context rather than further filtering the recommendations. The sector universe is limited, and the rotation and risk-off rules are simple heuristics that may not capture broader market leadership or changing conditions.
Key ideas
- The indicator ranks six sector ETFs by daily performance and displays the S&P 500 proxy for context.
- It flags rotation when the performance spread between the strongest and weakest tracked sectors exceeds its set threshold.
- A risk-off flag requires positive consumer staples and utilities performance alongside negative technology performance.
- Volume confirmation is triggered if any tracked ETF’s volume exceeds its lookback average by the specified ratio.
- Long and short stock lists are selected from the strongest and weakest sectors, without tested entry or exit rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.