It is more easy for a retail investor to spot the next sector if he/she keeps observing price actions in various sectors over a period of time.
Simplest thing to do is to keep watching the 52 weeks high list on a regular basis. If a lot of stocks from the same sector start featuring in this list on a consistent basis, then it makes sense to have a look at chart patterns of individual stocks.
If most of them start showing bullish formations of similar or different kinds, then it adds to the conviction. Next step is to listen to the commentary of these companies wherever possible and do some digging.
If all the above things fall in place, then you have probably stumbled on to the next big sector. Next thing is to observe the behaviour of these bunch of stocks during days where markets are weak. If these show more resilience as compared to overall markets, and start moving once the market start a strong rally, then you have hit the jackpot. Within these group of stocks some of them will often move quickly, rest will follow.
But there are some sectors typically related to cyclical industries, where the cycles tend to run shorter. In other sectors often the rallies last much longer. Observing sectors in fancy over a period of time helps in figuring out these things.
Personally I do not folllow what big guys/big funds or quant funds are doing. I have described the process I follow above and usually that helps in getting into a few sectors early on. Many a times I miss a sector or two due to various reasons, but that’s something that’s okay to live with. We don’t need to win all the races. Idea is to make the most of your winners.
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