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Market Analysis  |  AUG 2012

Applying The Sector Rotation Model

Two simple tools can help you incorporate the macro perspectives of the stock market in your technical analysis: the sector rotation model and the yield curve. Both are based on macro fundamentals, both have a technical application, and both have signals that usually precede major market reversals and highlight signals from classic technical analysis. In this article I will explain the logic of the first, the sector rotation model, and present a simple indicator to monitor its waves.

by Giorgos E. Siligardos, Ph.D.

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