Sector Rotation Scanner
Money moves into sectors before it moves into individual stocks. The sector rotation scanner tracks where institutional capital is flowing, ranks every sector and industry group by relative strength, and then finds the leading names inside the groups that are gaining momentum — stocks with both individual strength and a powerful group tailwind.
Professional money managers do not buy stocks in isolation. They allocate capital to themes — technology, energy, healthcare, industrials — and then fill those allocations with the best names in each group. When a sector begins to attract institutional capital, the effect compounds: early buyers push prices higher, momentum screens light up, and more funds pile in. By the time the rotation is obvious on financial television, the leaders in that sector have already made a significant portion of their move.
The scanner is designed to spot where big money is rotating before the crowd catches on. It measures sector relative strength across multiple timeframes — 4-week, 8-week, and 13-week windows — and flags groups where strength is accelerating. A sector that was ranked 15th four weeks ago and is now ranked 3rd is more interesting than a sector that has been ranked 3rd for months. Acceleration tells you that new money is arriving.
Within the top-ranked sectors, the scanner isolates the individual stocks showing the strongest combination of price action, volume patterns, and relative strength. These are the names leading their groups higher — the ones institutions are accumulating most aggressively. A strong stock inside a strong sector is the highest- probability setup in the market, because it has demand pulling from both levels.
Research going back decades confirms that roughly half of a stock’s price movement is attributable to the strength of its sector and industry group. A great stock in a weak sector has to fight against the current. The same stock in a surging sector gets carried by institutional flows it cannot even see. Sector rotation analysis puts you on the right side of that current.
How the sector rotation scanner works
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01
Rank every sector by relative strength
Every evening after the close, the scanner ranks every sector and industry group by price performance over 4-week, 8-week, and 13-week windows across the full universe of roughly 1,900 US stocks.
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02
Detect accelerating flow
Groups showing accelerating relative strength — improving rank over time — are flagged as rotation targets. Volume and price patterns within each group are analyzed to detect institutional accumulation.
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03
Screen individual stocks
Within the top-ranked groups, each stock is evaluated for its own relative strength, base pattern quality, and volume signature. The scanner finds stocks leading their group, not lagging it.
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04
Score dual strength
Each result is scored on both its individual strength and its group’s strength. Stocks that rank highly on both dimensions rise to the top — this dual filter eliminates strong stocks in weak sectors and weak stocks riding a sector wave.
What you see in each result
Sector rank
Where the stock’s sector and industry group rank in relative strength, and whether that rank is improving or deteriorating.
Group acceleration
The change in sector rank over the past 4 and 13 weeks. A sector jumping from 20th to 5th is flagged as a rotation target.
Individual RS rank
The stock’s own relative strength within its group and against the broader market. Leaders within leading groups get the highest priority.
Volume pattern
Accumulation/distribution analysis at both the stock level and the group level, showing whether institutions are building positions.
Daily chart
Candlestick chart with moving averages and volume, showing the stock’s base pattern and breakout proximity.
Sector heatmap
A visual overview of all sectors ranked by relative strength, so you can see the rotation landscape at a glance.
Questions about the sector rotation scanner
What is sector rotation?
Sector rotation is the pattern of institutional money flowing from one area of the market to another. Large funds reallocate based on the economic cycle, earnings trends, and policy changes. Tracking which sectors are gaining relative strength lets you position in stocks most likely to benefit from sustained institutional inflows.
How does the scanner find the best stocks in each sector?
It ranks every sector and industry group by relative strength over multiple timeframes, identifies which groups are accelerating, and then within those top groups finds the individual stocks with the strongest price action, volume patterns, and relative strength. The result is names with both individual strength and group tailwind.
Why does sector strength matter for stock picks?
Research shows roughly 50% of a stock’s price movement comes from its sector and industry group. A strong stock in a weak sector fights the current. A strong stock in a strong sector benefits from institutional flows at both the group and individual level. Sector rotation analysis puts you where the big money is already committed.
How to spot a rotation early and which sectors tend to lead at each stage of the cycle: sector rotation guide.
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