Sector Analysis Rotation with TopScope

Sector analysis rotation of the Stoxx600 via TopScope

Chapters

• 00:00 Intro – a fresh look at 2025
• 00:40 TopScope: 1- and 4-year performance
• 01:50 Alligator Indicator – Direction & Momentum
• 03:10 Benchmark Stoxx600 – sleep mode and consolidation
• 04:30 Sector examples – cars, banks, commodities
• 05:45 Further sectors – media, oil & gas, technology
• 06:40 Strongest and weakest sectors in focus
• 07:40 Conclusion – sector rotation & outlook

Quickly to:

• Description
• Study overview
• Sectors in detail
• Key points
• Short FAQ

Description

A fresh look at the Stoxx Europe 600 sectors.
In this update we use the TopScope study in combination with the Williams Alligator indicator.
This will give you a clear overview of performance at 1 and 4 years, with an eye for direction, momentum and trend strength.
We compare weak sectors such as Food & Beverages with strong like Banks, and see where the opportunities lie.
Performing this combination monthly will provide you with a sector analysis rotation overview.

Study overview

• TopScope diagram: 1 year of performance (daily) and 4 years of performance (weekly).
• Alligator HOLD: three rising balance lines = stable uptrend.
• Alligator SHORT: descending lines = longer downward phase.
• Crossbreeds: often indicate entry or exit moments.
• Contrarian view: SHORT mode can provide longer term opportunities.

Sectors in detail

Some examples from the Stoxx600 sectors:

• banks: clear bullish trend, balance lines are rising consistently.
• Cars & Parts: downward, but momentum is losing power.
• Food & Beverages: weakest performer since 2022, remains in SHORT mode.
• Technology: recovery from consolidation, higher highs visible.
• Telecom: one of the strongest sectors, possibly above 2021 peak.
• Utilities: consolidation, but chance of a breakout above 395.

Key Points Sector Analysis Rotation

• TopScope provides direct insight into performance over several years.
• Alligator indicator helps to estimate direction and momentum.
• Strong vs. weak sectors: Banks and telecom lead, food and healthcare lag behind.
• Contrarian odds: prolonged weakness can create opportunities.

Short FAQ

This publication is for educational and informational purposes only. It does not constitute an invitation to buy or sell, nor does it constitute personal investment advice.