Spotting sector rotations isn't rocket science—it's really about staying on top of two things: sector performance metrics and trading volume patterns. Here's the thing though: investors who nail this consistently tend to see significantly better returns and manage to dodge the worst drawdowns.

Why? Because rotation signals often appear in the data before price moves catch up. When volume starts concentrating in specific sectors while others cool off, that's usually your cue. Compare it to watching a crowd—if you notice people shifting before the rush actually happens, you're ahead of the game.

The practical play: Keep a solid watchlist, track how money actually flows between sectors, and don't ignore what the volume bars are telling you. Small edge? Maybe. But compound that edge over dozens of trades, and suddenly you're looking at noticeably improved outcomes versus the folks just holding and hoping.