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Dave, to better answer your question I do a series of “Delta Relative Strength Sorts” of sectors in comparison with the S&P500. For example, last swing point low on 1/03/06 to current the S&P gained 1.48% in value. The following sub-sectors place in the top 5
Semi-Memory chips +17.33%
Building Materials Wholesale +12.45% and so on
Then I’ll pick out other swing points or major lows from different time points and see what rises to the top. This does not indicate that I trade a stock with-in the sector, but it does let me know the money was flowing into Semi-Memory chips when it has gone up 17.33% in such a short time. By applying this simple technique it helps in finding rotation of money. This simple technique is part of my annalist of the sectors and does pretty well at picking out rotation and influx of money flow within the sectors themselves.
Just wanted to clear this up with a more defined answer.
This is an example of the Delta Relative Strength as it rotates through time as sectors rise and fall off the top 20 list. Notice how many sectors keep hitting in the top 5-10 spot. This does not signal a trade but just where the money has been flowing with in the sectors on a relative basis from past swing highs or lows.
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