Free Sector Rotation Analysis Free
Free Relative Rotation Graph (RRG) - Track sector momentum and strength with no registration required
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Current Sector Positions
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RRG Quadrant Guide
Leading (I)
High RS, High RM
Strong sectors continuing upward
Weakening (II)
High RS, Low RM
Strong sectors losing momentum
Lagging (III)
Low RS, Low RM
Weak sectors continuing downward
Improving (IV)
Low RS, High RM
Weak sectors gaining momentum
Understanding Sector Rotation
What is Sector Rotation?
Sector rotation is the movement of investment capital from one market sector to another as economic conditions change. Different sectors perform better at various stages of the economic cycle - technology and growth sectors often lead during expansions, while defensive sectors like utilities and consumer staples typically outperform during downturns.
How to Read RRG Charts
Relative Rotation Graphs plot sectors across four quadrants based on relative strength and momentum. Leading sectors show strong performance with positive momentum. Weakening sectors maintain strength but lose momentum. Lagging sectors show poor performance with negative momentum. Improving sectors remain weak but gain momentum. Understanding these patterns helps investors time sector allocation decisions.
Sector Rotation Trading Strategies
- Economic Cycle Timing: Rotate into cyclical sectors during expansion, defensive sectors during contraction
- Momentum Following: Invest in leading sectors while avoiding lagging ones
- Contrarian Positioning: Identify improving sectors before they reach the leading quadrant
- Risk Management: Reduce exposure to weakening sectors before they become lagging
- ETF Implementation: Use sector ETFs like XLK, XLV, and XLF for direct sector exposure
- Diversification Strategy: Balance portfolio across multiple sectors based on rotation analysis