Introduction

Sector rotation contains a lot of detailed information about what is going on beneath the surface of the market — information that you can’t see by just watching the broad market S&P 500 (SPX).  The SEAF Model provides us with this information by tracking the velocity of money moving around the 11 Sector SPDR ETFs, which together comprise the S&P 500.

Late last year we launched our Beyond The SEAF Model Video for the purpose of getting into even more detail than just tracking the SEAF Model graphic and investing in the top-ranked sectors while avoiding the bottom-ranked ones.  This weekly video by Jack Kosar, MSF, includes a heat map that shows where sector-related assets are going and where they are leaving in three different time periods, highlighting the sectors that are coming off of the bottom rankings and improving, before they reach the top rankings

The video has been a part of our Monday Keys To This Week: Market Sectors & Industry Groups report since late 2023 but, when talking to subscribers, we have found that many have missed it. 

For those who are particularly interested in sector rotation, or just want to have a better and more in-depth understanding of what is really happening inside of the broad market, we think this video will be of interest to you.


 

Disclosure/Disclaimer: The information on this website is provided solely for informational purposes and is not intended to be an offer to sell securities or a solicitation of an offer to buy securities. The strategies employed in managing this and other model portfolios may involve algorithmic techniques such as trend analysis, relative strength, moving averages, various momentum, and related strategies. There is no assurance that these strategies and techniques will yield positive outcomes or prevent losses. Past performance as indicated from historical back-testing is hypothetical in nature and does not involve actual client portfolios, does not consider cash flows or market events, and is not predictive of future performance. The model is managed by contemporaneously recording hypothetical trades. Such trades are not live trades and are not influenced by emotional or subjective reactions to extraneous market, economic, political and related factors. The performance for such model(s) is derived from utilizing a variety of technical trading strategies and techniques. Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models utilize mathematical algorithms to attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, new data is accurately incorporated, or the software can accurately predict future market, industry, and sector performance.  Asbury Research LLC does not and cannot provide any assurance that an investment in the model portfolios will yield profitable outcomes. The risk of loss trading in financial assets can be substantial, and different types of investment vehicles, including ETFs, involve varying degrees of risk.  Therefore, you should carefully consider whether such trading is suitable for you in light of your financial condition. An investor’s personal goals, risk tolerance, income needs, portfolio size, asset allocation and securities preferences, income tax, and estate planning strategy should be reviewed and taken into consideration before committing to a specific investment program. Please consult with your financial advisor to discuss the appropriateness of any strategy prior to investing. All investments involve risk. Principal is subject to loss, and actual returns may be negative. Returns are not guaranteed in any way and may vary widely from year to year.