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How to Track a Capital Rotation Event in Three Charts
by Brandon Chapman, CMT

“Are we in a capital rotation?” I think I’ve been asked that question more in the past week than at any time in the past 20 years. 

Most investors just aren’t typically attuned to seismic shifts in sentiment, but maybe the retail investor community is finally catching on!

The idea of a capital rotation event has been around for a long time. Typically, technical analysts call this “sector rotation,” but one thing about language is that it’s always changing. While language changes, the underpinnings of rotation indicators don’t.

Here’s how to track and understand what’s happening as it unfolds but before the rest of the market figures it out…