Practical Guide To Theme Rotation (+ a prompt)

Below you'll find some of the platforms, prompts, and pieces I use to analyze themes + relative strength. I noticed everyone was bookmarking a reply I made about finding the next *themes + strongest stocks in those themes*. So here's a guide: Step one. Find a platform or data source that analyzes theme performance, provides thematic maps, or has data of theme-specific movements. I will use @finviz_com's "Maps" tab for this example, but you can also use @thenewmoney_tnm's "Trends" tab (or others) as a backup.

Step one.

Click on the "Maps" tab in the nav bar.

Next, click on "Themes" in the left side panel.

Once on "themes", filter by 6-month, 3-month, and 1-month performance. For each, take a screenshot of the full map. So you'll have 3 screenshots at the end of this.

Once you have these 3 screenshots, pull up your favorite LLM and use this prompt: (I prefer @PPLXfinance/@perplexity_ai for this exercise, but@ChatGPTapp,@grok, etc...work well too) Copy and paste this prompt into the LLM, along with the 3 thematic map screenshots:

You are a professional macro + equity market strategist specializing in sector rotation and thematic momentum analysis.I will provide 3 images showing stock market thematic performance heatmaps:Image

A = 6 month performance by theme

Image B = 3 month performance by theme

Image C = 1 month performance by themeYour job is NOT to describe the images.

Your job is to detect capital rotation, acceleration, and exhaustion. Follow this exact framework:

Step 1 — Normalize

Identify all themes that appear across the timeframes. Treat each theme as a factor competing for capital allocation.

Step 2 — Momentum Shift Classification

For each theme classify into ONE of these categories:

1. Early Accumulation

(weak at 6M → improving at 3M → strong at 1M)

2. Established Leadership

(strong across all timeframes)

3. Peaking / Late Cycle

(strong at 6M → weaker at 3M → weak at 1M)

4. Capitulation / Bottoming

(very weak at 6M → still weak at 3M → stabilizing or mixed at 1M)

5. Dead Capital

(weak across all timeframes)

Step 3 — Capital Rotation MapExplain where capital is moving FROM and TO.

Example format:

“Capital rotating out of X into Y, with Z as emerging secondary beneficiary.”

Step 4 — Acceleration AnalysisIdentify themes with the largest rate of change in performance between:

6M → 3M

3M → 1M

Focus on second derivative momentum (speed of improvement), not just absolute performance.

Step 5 — Predict the Next ThemeBased ONLY on rotation behavior (not opinions), predict:

• the next leading theme

• the most probable laggard

• one surprise theme the market is quietly accumulating

Explain the logic using institutional behavior (positioning, crowding, macro narrative evolution).

Step 6 — Trading ImplicationsGive actionable conclusions:

• what type of stocks traders should now prefer (cyclical, duration, speculative, defensive, infra, etc)

• whether the market is risk-on, risk-off, or transitioningDo NOT be vague.

Do NOT summarize the images.

Reason about capital behavior like a portfolio manager deciding allocations.

You receive an answer from the LLM...here's part of my answer based on the screenshots of thematic performance + the prompt, (which I agree with):

But listen closely.

This is a piece of the puzzle. Something to support a thesis. Data that can help you make decisions. But you still need to do deeper research, analyze the strongest stocks in that theme, and manage your risk if you decide to get involved.

TL;DR. > find the strongest themes using performance % across timeframes > compare, analyze, and uncover trends > make more educated decisions on rotation + "what's coming next"

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