Ranking the Strength Across Sectors Methodology

This document is a technical report that outlines a methodology developed by Trendrating to measure the strength of trends across sectors in the US large and mid-cap markets. It details how the methodology calculates the flow of buyers versus sellers, which is a key driver of price action. The report assesses the percentage of rising versus falling stocks within each sector, providing a measure of market breadth. It explains that changes in this ratio can quickly identify expected market direction. Additionally, the report presents actual rankings of sector strength based on aggregated trends, including detailed metrics for various sectors such as Energy, Materials, and Health Care. The report emphasizes the importance of this ranking for making informed selection and allocation decisions in investment strategies. It also includes a disclaimer regarding the use of the services provided, highlighting that they are intended for finance professionals who understand the complexities of financial products and market risks.