Continuous monitoring and fault diagnosis of rotating machinery during variable speed operation is performed using only a position feedback signal. The position sensor generates a periodic waveform having multiple pulses per revolution of the machine. A circuit is included to detect, for example, a zero crossing or edge of the periodic waveform. At each detected zero crossing or edge, the time and position of the event is stored in memory. Other data, such as the current in the motor, may also be sampled and stored in memory. Because the sampled data is triggered by repeated feature of the position feedback signal, the sampled data is in a stationary reference frame in the position domain. Frequency analysis is performed on the sampled data, and the frequency components present in either the sampled signal are analyzed to identify the presence of a fault in the rotating machinery.