Sector rotation from defensive stocks (XLV,XLU,XLP) to production stocks (XLK,XLI,XLY) is a breeze when you have the correct tools to guide you.
Funds moving to defensive sectors also reflect changes in the economy, and of course in a world of near ZERO interest rates the need to chase yield is a powerful force.
Cycles are a excellent timing tools for managing sector rotation. Below is the cycle between defensive and product type sectors.
Knowing the defensive sectors where near a bottom late 2013 it was time to review a popular defensive sector XLV (Health). Our RTT Market Timer showed strength in Nov 2011 and managing price action with Wyckoff logic it was a must to take advantage of strong trend of XLV.
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