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Wondering how to reconcile all the different tools to help with a simple Sector Rotation Strategy.
The Stock Selector tool can show the Trend indicator, and ST/LT strength indicator for a Single Symbol (XLE as ex.).
– Shouldn’t this tool show the Trend, ST/LT for all your stocks in your portfolio in a table as an option? I understand doing research on one stock but what is the use of the Portfolio? It is just a list. When you click on a symbol in the Portfolio all it does it take you to the Stock Selector page and shows the one symbol.The Top [Stocks and] Sector ETFs tool can show best LT RS head-to-head between sectors (All Symbol).
– Does the Top Sector tool also take the trend indicator into consideration?
– Do I have to use both tools:
– Top Sector tool to get the Top Sectors based on LT RS, and then
– Stock Selector tool to see if the Top Sectors have a Positive Trend?– Shouldn’t the Top Sector tool display the LT and ST indicator in the output data set?
– It says the LT is used first, then the ST to break ties, but in the output one does not know if the LT and ST are positive or negative.– Is there any back test of a Sector Rotation Strategy rotating into the the Top Sectors weekly/monthly?
Each tools seems good, but I thought one could use these tools to implement a strategy, but seems cumbersome since the tools seem dis-jointed. For a strategy, one would need to bring decision points together for several symbols and let the computer help in the decision based on rule ranking. You have some of this but all the indicators don’t come together, unless I’m missing something.
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Hey Robert!
Thanks for the great post, here are our answers:
Shouldn’t this tool show the Trend, ST/LT for all your stocks in your portfolio in a table as an option? I understand doing research on one stock but what is the use of the Portfolio? It is just a list. When you click on a symbol in the Portfolio all it does it take you to the Stock Selector page and shows the one symbol.
ANSWER: Correct, the portfolio is an easy way to keep a list of the stocks you are watching. Clicking them will autofill the Stock Selector tool where you can check the current technical and fundamentals for each. We are working to make the technical and fundamental indicators display in the portfolio in the future.The Top [Stocks and] Sector ETFs tool can show best LT RS head-to-head between sectors (All Symbol).
– Does the Top Sector tool also take the trend indicator into consideration?
ANSWER: The sectors are compared using the RS tool. Relative Strength with Point and Figure Charting doesn’t look at trend, it looks at which stock/ETF is performing better. However, the Top performer is very likely in a positive trend since it is the best of all sectors.– Do I have to use both tools:
– Top Sector tool to get the Top Sectors based on LT RS, and then
– Stock Selector tool to see if the Top Sectors have a Positive Trend?
ANSWER: This will depend on how strict your investing strategy is. Holding a sector is similar to holding the market. Some will opt to sell the market when it is negative to prevent significant loss but there can be missed opportunities on gains this way. In our individual stock investments we require a positive trend but when it comes to market or sector ETFs it may be acceptable to hold even if in a negative trend.– Shouldn’t the Top Sector tool display the LT and ST indicator in the output data set?
– It says the LT is used first, then the ST to break ties, but in the output one does not know if the LT and ST are positive or negative.
ANSWER: The top sectors are each put into the RS tool vs each other. With 11 sectors there are 55 comparisons made. Each sector is compared to the other 10. The sector with the most LT head to head wins is the top performing. We can certainly add the number of long term head to head wins if that is something that would be beneficial?– Is there any back test of a Sector Rotation Strategy rotating into the the Top Sectors weekly/monthly?
ANSWER: We are currently working on a 5-year+ back test using our own top sectors lists and plan to publish it late 2024!Thanks again for the great questions!
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