Business cycles and sector rotation

Here are some pictures to identify the business cycles and to analyze the M of the CANSLIM method.



"The chart obviously simplifies a lot of detail but should give you a graphical understanding of the relationships between sectors and the state of the economy. You can also go the other way -- looking at the relative performance of the sectors to see where the economy is heading. You can do this by viewing Smart Money's Market Map or looking at Stock Chart's sector performance charts or StockChart's market view.




S&P has a similar classification.

You can read the regular columns of the sector rotation guru Sam Stavoll at Business Week's online web site.

You might want to check the industry rankings at the http://www.rabbittanalytics.com.

Source:
[1] http://www.heroncapital.com/sectormodel.html
[2] http://www.businessweek.com/investor/list/stovall_toc01.htm