# Task: Fix Alert Test & Complete Sector Rotation Service

## Current State

The invest-copilot project is at Phase 1-6 complete, with Phase 2 (Data Pipeline) and Phase 5 (Sector Rotation) marked as "In Progress".

### Critical Issues Found

1. **Failing Test**: `tests/test_alerts.py::TestAlertCRUD::test_get_all_alerts`
   - Creates 2 alerts successfully (201)
   - GET request returns `total: 0` instead of `total: 2`
   - Root cause: watchlist fixture not properly linked to test user's watchlists

2. **Incomplete Sector Rotation Service** (`services/rotation_service.py`)
   - Hardcoded ETF list (XLK, XLF, XLE, etc.)
   - No proper ranking algorithm (rank_now, rank_previous, rank_change missing)
   - Missing rotation_signal field (bullish/bearish/neutral)
   - No macro context or analysis summary
   - Uses random data in some calculations
   - Only stores 30 days of prices instead of full history

### Project Structure

- **Backend**: FastAPI, asyncpg, Pydantic v2, Celery + Redis
- **Database**: PostgreSQL + TimescaleDB (hypertables for time-series)
- **Frontend**: Next.js 16, React 19, TypeScript, Zustand, TanStack Query
- **Testing**: pytest with 192 tests (1 currently failing)

## Recommended Next Task

### Phase 1: Fix Alert Test (Quick Win)

**Goal**: Make all 192 tests pass

**Steps**:
1. Investigate `conftest.py` watchlist fixture
2. Ensure watchlist is created with proper `user_id` ownership
3. Verify alert creation links to user's watchlist
4. Run full test suite to confirm all pass

**Acceptance Criteria**:
- `pytest tests/` returns 0 failures
- All 192 tests pass

### Phase 2: Complete Sector Rotation Service

**Goal**: Implement a production-ready sector rotation detection system

**Current Gaps**:
- No ranking algorithm (needs rank_now, rank_previous, rank_change)
- Missing rotation_signal (bullish/bearish/neutral based on momentum)
- No macro context (S&P 500 benchmark comparison)
- No analysis summary generation
- Hardcoded ETF list (should be configurable)
- Uses only 30 days of data (should use full history for ranking)

**Implementation Plan**:

1. **Add missing fields to rotation_service.py**:
   - `rank_now`: Current rank among all sectors
   - `rank_previous`: Previous period rank
   - `rank_change`: Difference (positive = improving)
   - `rotation_signal`: bullish/bearish/neutral based on momentum thresholds
   - `macro_context`: S&P 500 vs sector comparison
   - `analysis_summary`: Human-readable summary

2. **Implement ranking algorithm**:
   - Sort sectors by relative_strength
   - Assign ranks
   - Compare with previous day's ranks (from database)
   - Calculate rank_change

3. **Add rotation signal logic**:
   - bullish: momentum_20d > 0.05 AND rank_change > 0
   - bearish: momentum_20d < -0.05 AND rank_change < 0
   - neutral: everything else

4. **Add macro context**:
   - Fetch SPY prices
   - Compare sector momentum vs SPY momentum
   - Store in macro_context field

5. **Make ETF list configurable**:
   - Read from database or config
   - Allow dynamic sector ETF mapping

6. **Add tests**:
   - Test ranking algorithm
   - Test rotation signal logic
   - Test macro context calculation
   - Test edge cases (missing data, single sector)

**Acceptance Criteria**:
- All rotation fields populated correctly
- Ranking algorithm produces consistent results
- Rotation signals match expected thresholds
- Tests cover all new logic
- Service can be called via Celery task for scheduled runs

## Why This Task First?

1. **Fixes a critical blocker**: The failing test indicates a data ownership bug that could affect other features
2. **Completes a core feature**: Sector rotation is a key differentiator for this investment tool
3. **Both are high-value**: The test fix is quick (1-2 hours), the rotation service is substantial but well-scoped
4. **Aligns with project phases**: Directly addresses the "In Progress" items in the README

## Files to Modify

- `src/backend/tests/conftest.py` - Fix watchlist fixture
- `src/backend/services/rotation_service.py` - Complete rotation logic
- `src/backend/routers/sectors.py` - Update if needed
- `src/backend/tasks/rotation_tasks.py` - Add Celery task for scheduled runs
- `src/backend/tests/test_rotation.py` - Add new tests

## Estimated Effort

- Fix alert test: 1-2 hours
- Complete sector rotation: 4-6 hours
- Total: 5-8 hours

## Risks & Mitigations

- **Risk**: Watchlist fixture issue may affect other tests
  - **Mitigation**: Run full test suite after fix, check all watchlist-related tests
- **Risk**: Sector rotation logic may be complex
  - **Mitigation**: Start with simple ranking, add macro context in second pass
- **Risk**: Database schema may need updates for new fields
  - **Mitigation**: Check init.sql, add migration if needed

## Next Steps After This Task

1. Complete data pipeline (Phase 2)
2. Implement PWA features (Phase 7)
3. Add integration tests
4. Performance optimization