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Smart Money rotation


Have you ever wondered why some industries move in tandum, why some industries move up, some down or sideways ? Well the good news is that you don't have to worry about why does happens. All you have to know is that there are indexes and with a bit of technical analysis understanding you can spot which sectors are travelling in the direction you wish to invest your money and time.

What is the Global Industry Classification Standard (GICS®)?

The Global Industry Classification Standard (GICS®) was developed by Morgan Stanley Capital International (MSCI) and Standard and Poor’s (S&P) in 1999 in response to the global financial community’s need for a reliable, complete and standard industry classification system.

The GICS methodology is widely accepted as the industry analysis framework for investment research, portfolio management and asset allocation. Its universal approach to industries worldwide has contributed to increased transparency and efficiency in the investment process. The GICS has become an industry model widely recognized by market participants worldwide, including adoption of GICS Direct by eight of the top ten buy-side firms and nine of the top ten sell-side firms. It sets a foundation for the creation of replicable, custom-tailored portfolios and enables meaningful comparisons of sectors and industries globally.

The GICS structure has four levels of detail: 10 sectors, 24 industry groups, 64 industries, and 139 sub-industries. For details of changes to the GICS structure, please go to http://www.msci.com or http://www.gics.standardandpoors.com.

We will assume that by now you have learn and read through the beginners and intermediary sections on this web site.

So how do you decide which stocks are performing better ? The best way to find out are to scan through the various market indexes available. Spot which index is trending up. Use different time frames so that your thoughts are confirmed by changing to weekly and monthly charts. Once you have found a good performing sector trending in your direction find the stocks that are in that sector and that have a similar or better trend than the index. This are usually your leading stocks in that sector.








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