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

Team USA Wins the Soccer Final, But Three International Markets Beat the S&P

by Julius de Kempenaer

Last night (Sunday 7/7) the Dutch women's soccer team played the World Cup final against Team USA. I am not a huge soccer fan but, as a Dutchie, you have to catch at least part of that event! It did not work out for us, so congrats to the American girls for a game well played. I have to admit that I did try to come up with something catchy and compare the S&P with the Dutch AEX Index ($AEX), but that did not work very well for us either ;) The chart of choice, of course, was the Relative Rotation Graph showing various international stock market Read More 

RRG Charts

An Investment Process Is All About Piecing Things Together To Get Other Or Better Insights.

by Julius de Kempenaer

In my last DITC contribution, I wrote about the Real Estate sector, which is crossing over into the leading quadrant at the same time as the seasonality chart for that sector indicates that, over the last 20 years, XLRE closed the month of July higher 71% of the time, with an average gain of 1.9%. (The average gain, by the way, is calculated over all years, not just the years in which Real Estate outperformed the S&P 500.) In this article, I am going to take a look at the seasonality of all sectors, in combination with the Relative Read More 

RRG Charts

(Technical) Market Analysis And Portfolio Construction Are Two Completely Different Animals In The Same Zoo.

by Julius de Kempenaer

First of all, let me say that I really appreciate any feedback and comments I get on any of my articles, either via DISQUS below each blog post, via email or in SCAN. I do read all of them and I try to answer most of them, I think my response rate is above 90%. So if I have missed yours, just ping me again. Just being polite is one reason to answer, even if the answer is "sorry I cannot answer your question." But, more importantly, the interaction with readers is fun and sometimes thought-provoking. And, on a regular basis, these exchanges of thoughts provide ideas for future Read More 

RRG Charts

Staples and Financials Head Towards the Leading Quadrant While Energy Rolls Back into Lagging

by Julius de Kempenaer

The chart above shows the relative rotation for US sectors against the benchmark S&P 500. Over the last five weeks, the tails for Consumer Staples (XLP) and Financials (XLF) started to move in a similar fashion. Both are heading towards the leading quadrant. The Energy sector, on the other hand, rotated back into the lagging quadrant, following almost four months inside improving without being able to make it over to the right-hand side of the RRG. Energy - XLE The last 25 weeks of rotation show the Energy sector Read More 

RRG Charts

Spotting Strength And Weakness Inside The Financial Sector (XLF)

by Julius de Kempenaer

Looking at the Relative Rotation Graph showing the sectors of the S&P 500, we can see that the tail on the Financials sector stands out, having seen a big increase since last Friday. Over the last 12-13 weeks, Financials rotated from the lagging into weakening quadrant, then moved sharply back down to lagging and then back up to improving again. The move currently underway from the previous observation (last Friday) on the weekly RRG above is especially interesting to watch, as there is a much longer distance between the two observations than what we Read More 

RRG Charts

What Does It Mean When The US Starts Outperforming Other International Stock Markets?

by Julius de Kempenaer

Stock markets around the world are giving mixed signals. Returns over the last 5 weeks have varied from +4% in Australia to -10% in China. The Relative Rotation Graph above shows the relative trends that are currently in play among the various international stock market indexes. For a pure, and thus better, comparison of the various (trends in) performances, I use INDEXES instead of ETFs. If you want to read or re-read more about the reason why, please take a look at this article. When I started to study the tails for various indexes in the RRG above, I Read More 

RRG Charts

Gold Pops As The Stock Market Drops

by Julius de Kempenaer

After a struggle with resistance around its previous high of 2940, the S&P 500 index failed to break and started to come down off of its highs. A lot of political and fundamental issues and news are influencing the behavior of market participants at the moment; this uncertainty has resulted in a rally of the VIX index for the time being. In times like these, people start to look for safe havens, such as (government) bonds - preferably at short maturities - or defensive sectors, but also GOLD. Read More 

RRG Charts

S&P Executes Wedge And Rotation To Defensive Sectors Accelerates

by Julius de Kempenaer

Since printing its high on 1 May, the S&P 500 has struggled to keep up and make its final push through resistance. Over the last three to four days, the bulls have capitulated, putting a reinforcement of the 2940-2950 resistance zone into place. The rising wedge formation that had been building up since March has now executed. On the daily relative rotation graph for US sectors, the rotation to the more defensive sectors is now accelerating with Health Care, Utilities and Real Estate all inside the improving quadrant and rapidly heading towards leading at a Read More 

RRG Charts

Mixed Rotations For Technology Stocks Inside The Dow - MSFT Comes Out On Top!

by Julius de Kempenaer

The Relative Rotation Graph shows the five technology stocks inside the DJ Industrials index, all of which are at the right-hand side of the RRG. This is not surprising, considering the strong rotation of the sector as a whole against the S&P 500 index. Despite the strength of the sector, however, there are a few big differences in the relative strength and the rotation of a few of these individual names. Intel Corp - INTC On the RRG above, INTC is crossing over into the weakening quadrant following a sharp rotation down three Read More 

RRG Charts

"Hooks" And One Sided Rotations On Relative Rotation Graphs

by Julius de Kempenaer

Last Thursday, 18 April, was the third Thursday of the month, my regularly scheduled guest appearance on MarketWatchers LIVE. As Tom Bowley was enjoying a well-deserved day off, it was just me and Erin on duty. It wasn't my first time co-hosting, but every time I fill in for either Erin or Tom, it makes me realize what a great job they do every day. Since I was filling in for Tom, I'd like to make a big shout-out to him for all he does on MWL - fantastic job buddy!!! Hope you had a good long Easter weekend!! My normal slot is "Breaking it Down with RRG," Read More 

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