RRG Charts

Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January 2011 and was released on StockCharts.com in July 2014. A graduate of the Dutch Royal Military Academy and former captain in the Dutch Air Force, Julius first began his career in the financial industry in 1990 as a portfolio manager. He is now the director/owner of RRG Research in Amsterdam.

Latest Posts

RRG Charts

The BIG picture in ONE picture

by Julius de Kempenaer

Note 1: This article was posted earlier as part of the ChartWatchers newsletter last weekend. One paragraph and an up-to-date daily version of the Relative Rotation Graph for asset classes has been added to the bottom of this article. Note 2: A pre-populated universe for Asset Allocation has been added to the Groups drop-down. Relative Rotation Graphs® originally emerged out of my work on sector (rotation) analysis while employed as a sell-side analyst providing services to institutional clients. Shortly after the first introduction as a tool to visualize Read More 

RRG Charts

Technology sector rotating back to leading while Discretionary/Staples spread widens further

by Julius de Kempenaer

The Relative Rotation Graph shows the rotation of the ten S&P 500 sector ETFs (SPDR family) against the S&P 500 index ETF (SPY). The rotation of the technology sector (XLK) back into the leading quadrant after a short period of rotation through the weakening quadrant is s strong sign. The spread between the Consumer Discretionary- and Consumer Staples sectors continues to widen further and seems to be entering another leg up in its relative strength line. A strong relative strength for Discretionary over Staples is usually a bullish indication for the general Read More 

RRG Charts

Combining Relative Rotation Graphs and the "Turtle Soup" setup

by Julius de Kempenaer

On Monday 21 and Tuesday 22 May I stepped in for Erin Swenlin and acted as the co-host to Tom Bowley in the Market Watchers Live show. Clearly, we talked a lot about RRGs but as MWL is not all about RRG I wanted to bring something different to the table. Ever since Relative Rotation Graphs came to life I told people to use them in combination with "something else" as using them (or any other available TA-tool) in isolation would be too limited IMHO. Whatever "something else" should be is totally up to the user and should, I think, depend on their risk appetite Read More 

RRG Charts

Beat the Energy sector by avoiding XOM & CVX

by Julius de Kempenaer

In the previous RRG blog, I introduced the availability of pre-populated groups holding individual equities for each of the ten S&P sectors. This addition makes it much easier for users of the Relative Rotation Graph tool on Stockcharts.com to drill down to the individual equity level from asset class and/or sector level. In this article, I want to grab the bull by the horns and zoom in on the current equity rotation inside the Energy sector (XLE). Summary XLE leading the market and the only sector Read More 

RRG Charts

New pre-populated universes for Relative Rotation Graphs

by Julius de Kempenaer

If you have ever watched one of the webinars or Market Watchers Live shows that I have done here at Stockcharts.com, you may have seen me use Relative Rotation Graphs holding individual stocks and compare them to their sector benchmark. After each appearance, I always got a few questions on how to do that and in 2015 I wrote an article, including a video, on how you could set up your own RRGs holding individual stocks based on the constituents of (SPDR) ETFs tracking the various sectors. Including a video showing the process. As it is a bit of a tedious task and on Read More 

RRG Charts

Commodities taking over from equities?

by Julius de Kempenaer

For a very long time equities have been the dominating asset class, stuck at the right-hand side of the Relative Rotation Graph showing six different asset classes. That situation is now changing. Equities (SPY) is still at the right hand (positive) side of the RRG but inside the weakening quadrant, since seven weeks, and heading towards the lagging quadrant. Fixed income related asset classes are all inside the improving quadrant and rotating towards leading while Real-Estate is showing a very wide rotation with a very long tail and showing up at the highest Jdk Read More 

RRG Charts

All eyes on the CAT

by Julius de Kempenaer

Yesterday, Thursday 19th of April, it was my turn again to join Tom and Erin in their Market Watchers Live show again. By the way, I will be joining them every third Thursday of the month to talk about RRG and talk about market developments from an RRG point of view. My idea for yesterday's show was to talk the audience through some of the rationales behind my most recent article on the rotations inside the Dow Jones Industrials index. While I was reading through the article again and watching the updated Relative Rotation Graphs for the Dow Read More 

RRG Charts

AAPL and WMT moving in opposite directions on Relative Rotation Graph

by Julius de Kempenaer

Last week I attended the CMT Association’s annual symposium in New York City. One of the industry events that I visit each year. On the one hand to learn from other industry professionals but very much also to catch up with friends and maintain relationships. As I am writing this, I am still in New York digesting all information and organizing my notes which I gathered during the previous week. And of course, writing this blog-post. Which is an interesting exercise given the political events that occurred over the weekend. Maybe things will be Read More 

RRG Charts

Relative Rotation Graph shows near term strength for Utilities and Staples

by Julius de Kempenaer

The Relative Rotation Graph for US sectors is showing us a few interesting rotational patterns for the week ending 4/6. Studying the RRG above, there are two sector pairs which rotations I want to investigate a bit further. The first one is Consumer Discretionary vs Utilities because they are both at the extremes of the RRG and started turning around. The second combination of sectors to have a better look at is Consumer Staples against Health Care. Both are at the left side of the plot but moving at opposite headings. Summary Read More 

RRG Charts

Putting things into perspective for the FB face-plant

by Julius de Kempenaer

Facebook has been making headlines recently. Not only in the newspapers and online news services but also in some of the blogs at Stockcharts.com. With hindsight everything is easy and we can find many “signals” that “would have” given us early warning signals that we “should” have seen and the “could have” helped…. It is also very easy to find signals or methods that did not work. It happens, we all know that Personally, I am very reluctant to judge analytical methods that I am not, yet, too familiar with. For example, I am not an expert in Elliott Wave analysis Read More 

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