Today I’ll be continuing with the sector rotation strategy for finding profitable trades. If you haven’t been reading the series, here is a list of articles:

1. Sector Rotation: Investing In The Current Economy
2. Using Sector Trends To Find Profitable Trades

The next concept for using sector rotation to find profitable trades is to analyze money flow into and out of sectors and industry groups. The theory is relatively simple; if you were to stack rank each industry group every trading day, and keep track of that ranking over time, you would have a very useful chart that details the ebb and flow of big money throughout the stock market.

Until recently I was doing this by hand each week, individually ranking each industry group and writing down the rankings in a spreadsheet. The good news is that now there is a free tool available from Prophet.net that takes care of this tedious task for you.

Welcome To Historical Industry Relative Strength Rankings

Click To Enlarge

Thanks to this wonderful tool, it is now simple to find stocks and analyze charts for up, down, and sideways markets. Click on the picture below to watch the video on how to use this tool to find profitable trades.

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