Hey trader,
Your portfolio bleeding when the S&P 500 is near all-time highs
The index grinds higher, yet your holdings keep losing value.
How is that even possible?
Because you are watching the wrong number.
The index is a lie.
Twenty names prop it up while everything underneath collapses.
By the time the index finally breaks, you have already lost months of gains.
So, how did the professionals already exit?
Because they weren’t watching the S&P 500. They were tracking something else entirely.
And today, you’re going to learn how to do the same.
There are 11 specific industry groups that matter. When leadership breaks across these groups, the market follows. Every single time.
Institutions track these groups daily to spot market tops before they happen. Meanwhile, retail traders stare at the index and wonder why they always exit too late.
Today, I’ll show you exactly which 11 groups to track, how to measure their leadership, and what breakdown pattern signals the market is finished.
This is the same framework institutions use.
And it’s the same framework that the Genesis Cog Scanner automates and alerts you when leadership starts breaking.
The scanner keeps my members in front of the moves, and ensures we aren’t going against the grain.
👉 See how the Genesis Cog Scanner tracks the 11 groups automatically
The 11 Groups That Matter
You need to track 52-week highs across these sectors daily:
- Consumer Discretionary
- Consumer Staples
- Energy
- Financials
- Healthcare
- Industrials
- Materials
- Real Estate
- Technology
- Telecommunications
- Utilities
Each morning, I pull up every single one of these industry groups.
I look at how many stocks within each sector are making 52-week highs versus 52-week lows. That ratio tells me where institutional money is flowing.
When three or four groups simultaneously show expanding 52-week high lists, the bull market has legs. When those lists start contracting across multiple sectors, you are watching leadership break down in real time.
Right now, discretionary is getting destroyed. Tech has rolled over. But energy, materials, and utilities are still holding.
That mix tells me the market has not broken yet. But it is close.
The S&P 500 lies to you every single day. The index keeps grinding higher while individual stocks get liquidated on earnings.
When you track leadership by sector, you see the truth. Discretionary loses 52-week high leadership in October. Tech follows in January. Financials crack in February. That sequence matters.
Once leadership breaks across three major groups, the index cannot hold. I have traded for 39 years. Every major correction starts the same way. Leadership contracts sector by sector. Then the index gaps down and everyone acts surprised.
This takes five minutes every morning. Pull up each of the 11 industry group ETFs. Look at the percentage of stocks within that group making 52-week highs.
If consumer discretionary showed 15% of stocks at 52-week highs last week and only 8% this week, leadership is contracting. If tech drops from 20% to 12%, another leg is breaking.
When that pattern repeats across three or four groups simultaneously, the market top is forming.
Now, check out this comparison of industrials to consumer discretionary retail stocks.
Right now you can see it happening.
Industrials hold leadership while retail collapses. That divergence shows where institutional money flows before the index breaks.
Track all 11 groups this way and you spot the rotation before price confirms it.
The Genesis Cog Scanner does this automatically before price confirms the rotation. I do not guess when to get defensive. I watch the numbers tell me.
Right now I am getting rotated against every single day. XLP started working. Netflix finally came around. But other positions are bleeding because sector leadership keeps shifting.
When no sector can sustain leadership for more than two days, the market is preparing to break. The algorithms are probing for support. When they do not find it, they will dump everything at once.
I am 55% cash right now. I am not shorting aggressively because the market has not broken trend yet. But I am watching leadership carefully.
The bull market is not dead yet. But once market leadership breaks down across multiple sectors, that is the end.
Track your 11 groups every morning. Watch the 52-week high counts. When they start contracting together, you have your signal.
The Genesis COG System tracks sector rotation automatically and identifies when leadership is breaking down before retail sees the move.
See how the Genesis COG System tracks the 11-group framework in real time →
You do not need to guess when the market will break. The jigsaw puzzle shows you.
Professor Jeffrey Bierman
Creator of the Genesis COG System