Ready, Set, Rotate

The market might be going nowhere fast but rotation in and out of sectors appears to be quite robust.

First thing's first. When the traders talk about sector rotation what do they mean?

According toInvestopedia, "it’s the action of shifting investment assets from one sector of the economy to another. The idea is that some sectors profit more than others merely because of where we are in the economic cycle – or on the calendar."

Now what the trading strategy?

Steve Cortes, President Of Veracruz says he’s betting against tech as a sector. “I believe the recent period of outperformance is coming to an end for two reasons. 1) Tech is a cyclical business that’s dependent on the business cycle and 2) tech is dependent on consumer spending," he says on Fast Money.

And what's the play?

"I'm selling tech and buying S&P against it," he says. Also he says, "I'm looking at quality financials such as Goldman and Morgan against tech shorts."

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Trader disclosure: On Feb. 26th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (EEM), (MON), (BAC), (FXI), (VIP); Seymour's Firm Owns (COP), (FCX), (RIO); Terranova Owns (OTS), (FXC), (XBI), (BRCM), (WYNN), (INTC), (DELL), (JOYG); Terranova Owns (IBM) Call Spread; Terranova Owns (AMGN) & (AMGN) Puts; Macke Owns (MS), (TM), (SDS), (AAPL); Finerman's Firm Owns (DNA), (MSFT), (RIG); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO), (VNO), (BBT); Finerman's Firm Owns (WFC) Preferred, (BAC) Preferred

Cortes Is Short Nasdaq
Cortes Owns (XLE), (GS), (MS)