Construct a regime-aware context from sector rotation

What a sector rotation model describes

A market sector is defined as a group of companies conducting similar types of business. A sector rotation model describes which sectors are expected to be most active during different periods of the economic cycle.

In that workflow, the sector rotation model is a cycle-based map of which industry groups tend to lead or lag as money availability and economic activity expand or contract. The archive presents two macro-technical tools, the sector rotation model and the yield curve, as ways to put stock-market technical analysis into a broader context.

Rotation and rate of change as separate pieces

Industry rotation belongs with market-regime work. It takes cross-market prices, volatility, carry, and portfolio weights on a weeks-to-months horizon, and its job is to put a single trade into a diversified or regime-aware context.

Rate of change is a different piece. It is a signal drawn from OHLC price structure and chart scale, usable from the intraday horizon to several weeks, and it turns a repeatable chart condition into a falsifiable trade hypothesis.

Editorial reading: keep the chart condition inside the rotation map. Rate of change asks whether a price condition is present. The map asks which industry groups are expected to be most active as the economic cycle shifts. Neither piece, on its own, is the full context.

Regime classification, the yield curve, and SRMIND

Market regime classification uses the same class of inputs as industry rotation: cross-market prices, volatility, carry, and portfolio weights, on a weeks-to-months horizon. It is the layer that places one trade inside a diversified or regime-aware setting.

The yield curve is a related macro-technical context tool, complementary to sector rotation, for highlighting possible market-regime turns. SRMIND is a composite long-horizon indicator that scores whether economically sensitive sectors are leading defensive ones.

Editorial reading: use SRMIND as a summary of leadership inside the rotation map, and use the yield curve as a second context check. They help assemble the regime picture. They do not replace the sector definition, the rotation map, or the rate-of-change condition.