OPEN-SOURCE SCRIPT
Sector Alert Signals
This Pine Script v6 indicator is a Macro Regime & Sector Rotation Engine. It synthesizes inter-market relationships across 17+ tickers to detect structural shifts in the US equity market that are often invisible on a single-asset chart.
📊 Executive Summary
It utilizes Z-score normalization, volatility-adjusted performance, and ratio analysis to identify 9 distinct macro scenarios. By monitoring the flow of "Smart Money" between defensive and cyclical sectors, the script provides real-time alerts on regime transitions, liquidity cycles, and credit stress.
🛠 Core Macro Scenarios
The engine monitors the following regimes:
1. Risk-On / Risk-Off (XLY/XLP)
Macro Divergence: Identifies when Consumer Discretionary (XLY) leads Staples (XLP) while SPY remains hesitant—a classic "early cycle" recovery signal.
Bubble Alert: Detects extreme greed when SPY is overbought and the XLY/XLP ratio hits a +2.0 Z-score.
2. Monetary Policy & Rate Sensitivity (XLK/XLF)
Rate Cut Front-run: Detects aggressive tech bidding paired with financial weakness, signaling market anticipation of easing.
Growth-to-Value Rotation: Confirms structural shifts when Tech retreats while Financials and Energy surge.
3. Inflation & Reflation Logic
Reflation Trade: Flags "Bond Proxies" (Utilities/Real Estate) plunging while "Hard Assets" (Energy/Metals) surge.
4. Systemic Risk & Credit Stress
KRE Liquidity Collapse: Monitors the spread between Regional Banks (KRE) and Diversified Financials (XLF). A widening negative spread during price drops signals structural credit tightening.
Small Cap Stress: Tracks IWM/SPY divergence as a canary in the coal mine for liquidity withdrawal.
5. Volatility & Liquidity Regimes
High-Vol Leaders: Identifies sectors showing "True Strength" (Performance / Volatility) even when the VIX is > 20.
Liquidity Party: Detects synchronized "High Beta" explosions (SOXX, IGV, XBI, CLOU) indicative of FOMO-driven liquidity peaks.
6. Market Breadth (RSP/SPY)
Concentration Risk: Uses the Equal-Weight vs. Cap-Weight Z-score to alert when the market is narrowing (dangerous) or broadening (healthy).
📊 Executive Summary
It utilizes Z-score normalization, volatility-adjusted performance, and ratio analysis to identify 9 distinct macro scenarios. By monitoring the flow of "Smart Money" between defensive and cyclical sectors, the script provides real-time alerts on regime transitions, liquidity cycles, and credit stress.
🛠 Core Macro Scenarios
The engine monitors the following regimes:
1. Risk-On / Risk-Off (XLY/XLP)
Macro Divergence: Identifies when Consumer Discretionary (XLY) leads Staples (XLP) while SPY remains hesitant—a classic "early cycle" recovery signal.
Bubble Alert: Detects extreme greed when SPY is overbought and the XLY/XLP ratio hits a +2.0 Z-score.
2. Monetary Policy & Rate Sensitivity (XLK/XLF)
Rate Cut Front-run: Detects aggressive tech bidding paired with financial weakness, signaling market anticipation of easing.
Growth-to-Value Rotation: Confirms structural shifts when Tech retreats while Financials and Energy surge.
3. Inflation & Reflation Logic
Reflation Trade: Flags "Bond Proxies" (Utilities/Real Estate) plunging while "Hard Assets" (Energy/Metals) surge.
4. Systemic Risk & Credit Stress
KRE Liquidity Collapse: Monitors the spread between Regional Banks (KRE) and Diversified Financials (XLF). A widening negative spread during price drops signals structural credit tightening.
Small Cap Stress: Tracks IWM/SPY divergence as a canary in the coal mine for liquidity withdrawal.
5. Volatility & Liquidity Regimes
High-Vol Leaders: Identifies sectors showing "True Strength" (Performance / Volatility) even when the VIX is > 20.
Liquidity Party: Detects synchronized "High Beta" explosions (SOXX, IGV, XBI, CLOU) indicative of FOMO-driven liquidity peaks.
6. Market Breadth (RSP/SPY)
Concentration Risk: Uses the Equal-Weight vs. Cap-Weight Z-score to alert when the market is narrowing (dangerous) or broadening (healthy).
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.