Relative Rotation

Jun 19, 2025

Connect

When you are comfortable applying the Lutey Recession Indicator then you understand how to apply it during the relative sector rotation.

For example, when the market is leading with prevsiously weakening or lagging stocks such as financials or utilities then you know it is time for things to turn over.

Or if it is leading up while volume is weakening then you know that it is time to do something to protect your assets.

Those are the first warning signs.

View the challenges inside the the Dr. Lutey Recession Indicator 'Elite' Circle to aply the relative rotation. If you haven't already - please sign up for Optuma platform for viewing the Relative Sector Rotation and creating the sector rotation strategies. If you are a Bloomberg subscriber you may view the relative rotation in Bloomberg also.

Current Sector Analysis

Using the VPCI MA10 model from Optuma we can see the current breakdown of the sectors. From 12/1/1993-12/7/2025: XLC - Communication Services Returns 3.2% Volatility 9.4% VPCI MA10 Rule Following the sector Returns 12.1% Volatility 13.6% XLY - Consumer Discretionary Returns 8.8% Volatility 17.7% VPCI MA10 Rule Following the sector Returns 23.1% Volatility 23.4% XLP - Consumer Staples Returns 4...

Sector Rotation Strategies

Please sign up for the Fall 2025 Sector Rotation Strategy Challenge inside of the Dr. Lutey 'Elite' Recession Indicator circle. This challenge will allow you to re-build sector rotation strategies that involve technical analysis and volume price momentum. We will discuss as a group what strategies might be effective for navigating the market going forward over the next 3-6 months. The challenge...

Beyond the Basics: Advanced Tactics for Interpreting and Applying the Lutey Recession Indicator

Hello there, finance enthusiasts! Welcome to this week's newsletter where we're going beyond the basics and diving into the deep end of the Lutey Recession Indicator. We'll be exploring advanced tactics that will help you interpret and apply this economic tool with greater precision and effectiveness. So, buckle up and get ready to enhance your financial acumen! Understanding the Lutey Recessio...

Technical & Tactical

Go Beyond the Signal. Advanced Tactics for Applying the Lutey Recession Indicator.

RESOURCES

SERVICES

ABOUT

Work with me