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

Something that makes me go ...Hmmmmmmm?

by Julius de Kempenaer

The daily RRG for US sectors shows a lot of sectors "hooking" lower and only two sectors that are, still, at a positive RRG-Heading, ie rising on both axes. The chart above is showing a 5-day tail on every sector. if we look at the lengths and trajectories of these tails a few things catch my attention. The first observation is the ultra-short tail on the Technology sectors. XLK is positioned almost ON the horizontal axis and reading from the color just inside the weakening quadrant and it looks like a single dot. This Read More 

RRG Charts

Materials Sector Rolling over On Both The Weekly And The Daily RRG

by Julius de Kempenaer

The chart above shows the weekly rotation for the Materials sector, XLB, within the universe of US sectors against SPY. After the tail turned upward inside the lagging quadrant, XLB kept up with the performance of SPY and moderately outperformed the market until the sector started to lose relative momentum again in the week of 21 Jan and 28 Jan when the tail started to roll over downward again without having reached the leading quadrant. This loss of relative momentum, declining Jdk RS-Momentum, is still ongoing and pointing the tail on XLB towards the lagging quadrant Read More 

RRG Charts

Join Me At The Traders EXPO in New York

by Julius de Kempenaer

Here's some shameless self-promotion! On Monday 11 March I will be doing an RRG presentation at the TradersEXPO in New York and you are invited. For FREE ;) Julius presenting RRG at TradersEXPO New York I have never attended one of the TradersEXPO events let alone presented at them so it will be a new adventure and I am excited about it. I don't really know what I can expect but I am preparing for a big event with lots and lots of visitors and market participants which is always a joy to be around. In case you are in the area or if you are already Read More 

RRG Charts

Two Sectors Are Rolling Over Inside The Leading Quadrant On The Daily RRG

by Julius de Kempenaer

The Relative Rotation Graphs, both daily and weekly, for US sectors are showing big disconnects between sectors. The image above holds the US sectors and shows daily rotations. It is immediately obvious that there is a big gap/disconnect between the right (=positive) side and the left (=negative)side of the graph. At the right-hand side of the RRG, we only find XLK and XLI inside the leading quadrant and XLRE already well inside the weakening quadrant. ALL other sectors are left to the center of the graph at a JdK RS-Ratio level less than 100 Read More 

RRG Charts

Watch Out For More Weakness In Financials This Week!

by Julius de Kempenaer

On the daily Relative Rotation Graph for US sectors, the rotation of Financials stands out. The tail is relatively long, indicating that there is good momentum behind this move, The bad news is that the rotation is taking place inside the weakening quadrant and has almost reached the lagging quadrant. Based on the position and the length of the tail on the Relative Rotation Graph a crossover into the lagging quadrant seems only a matter of days. When this happens, XLF will be inside the lagging quadrant on both the weekly and the daily Read More 

RRG Charts

The Staples Sector Is Improving, But Which Stocks Deserve Attention?

by Julius de Kempenaer

The Relative Rotation Graph shows the rotation of the stocks in the Consumer Staples sector against XLP, the Consumer Staples sector index. Keen observers may notice that I have left out COTY and CAG because they are very disconnected and distorting the picture. If you click on the image and open up the live version of this chart they will be there! In this article, I want to take a look at the internals of the Staples sector as XLP has started to rotate towards the leading quadrant on the daily RRG for US sectors while inside the weakening quadrant on the weekly RRG Read More 

RRG Charts

Breaking Down The Bloomberg Commodity Index Family On RRG

by Julius de Kempenaer

In this article, we are going to take a look at commodities using Relative Rotation Graphs and the Bloomberg commodity index family. When possible, I prefer to use data-sets that come from the same family and creating a "closed universe." This is a universe where all securities on the RRG together make up the benchmark that is used for comparison. For the US sectors, we often use the 11 SPDR ETFs and compare them against SPY. All these ETFs together make up SPY. For commodities, we can achieve a similar setup by using the Bloomberg commodity index family Read More 

RRG Charts

Defensive Sectors Starting Positive Rotations Again On Daily Relative Rotation Graphs

by Julius de Kempenaer

The Relative Rotation Graph for US sectors is showing a split picture. On the right, we have Utilities, Real-Estate, Consumer Staples and Healthcare. With the exception of Real-Estate maybe, these are generally accepted as "defensive" sectors. All other sectors (7) are positioned to the left of the benchmark (SPY). Not only is this universe split in terms of Jdk RS-Ratio level, but it is also split in terms of RRG-Heading. All sectors at the right-hand side of the graph are heading lower, primarily on the Jdk RS-Momentum axis and less so in terms of RS-Ratio Read More 

RRG Charts

SPY Arrived In "Trouble Territory"

by Julius de Kempenaer

After the sharp sell-off in Q4 of last year, the market (SPY) started to recover from its lows near 235. And IMHO it is still a "recovery" before turning down again as opposed to a "turnaround" back up. This weekly chart above clearly shows that the rhythm of lower highs followed by lower lows is still in play and for a turnaround to become a possibility we need, at the minimum a first higher low, i.e., above 235 or a new high, i.e., above 280, to be put into place.  Either possibility will take both time and strength. For the time Read More 

RRG Charts

Relative Rotation Graphs And Factor ETFs

by Julius de Kempenaer

It's Friday morning in Amsterdam and I just dropped my daughter off at school. On the way to my office, I usually stop at the local Coffee Company for a cappuccino and reading some, market-related, news, blogs etc. For some reason, I noticed a lot of talk and articles on factor investing, factor ETFs, factors that drive markets. Pretty much "factors" all over the place. While looking out of the window, yes it was a rainy day, I was thinking about a way to use Relative Rotation Graphs in combination with "factors". My thought was/is that "factors" Read More 

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