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

Markets are cracking. Is it just another dip or are we witnessing a bigger event in the making?

by Julius de Kempenaer

The general market conditions for the various major indexes have been commented on extensively by other commentators here on the site. There is no doubt that there is more rumble in the markets now than we have seen for a long time. IMHO this makes it an interesting time for analysts and investors alike and a good thing to do, as Greg Schnell pointed out nicely in his recent article, is to zoom out. You do not want to get caught in micro-analysis while the bigger picture is shifting. My favorite BIG PICTURE tool is, obviously ;) , the RRG showing various asset Read More 

RRG Charts

Break in $NIFTY re-shuffles sector rotation in India

by Julius de Kempenaer

This article is an extended and updated version of the article that appeared in last weekend's Chartwatchers newsletter. The Indian $NIFTY Index dropped out of an almost three-year uptrend at the close of last week. The rising support line that started at the low in early 2016 did not manage to hold up and was clearly broken during last week's market action. This move changes the dynamics of the Indian stock market. On the weekly chart above a new series of lower highs and lower lows has not (yet) begun. So technically it is not a downtrend yet. On Read More 

RRG Charts

XLV continues strong in leading quadrant, XLF and XLB snap lower on Relative Strength

by Julius de Kempenaer

On the Relative Rotation Graph for US sectors, the Healthcare sector continues strong into the leading quadrant at a steady pace (RS Momentum). Two sectors that are showing a sudden weakness in relative strength, and therefore deserve our attention, are Materials (XLB) and Financials (XLF). Summary Healthcare (XLV) moving further into leading quadrant at a steady pace Materials (XLB) snapping back into moving lower on JdK RS-Ratio scale Financials (XLF) hooking lower after a few weeks of rotation Read More 

RRG Charts

Canadian Health Care sector ($SPTHC) gunning for test of $ 155

by Julius de Kempenaer

The Relative Rotation Graph for Canadian sectors is showing a very distinct move for the Healthcare sector. It is inside the leading quadrant and powering further into it at a strong RRG-Heading at a very long tail. All ingredients for more strength ahead and worth a closer look on a regular chart. Two other sectors that are worth investigating are the Energy sector and the Financial Services sector. The latter is on the verge of crossing over from the improving quadrant into leading while Energy just crossed over from weakening to lagging. Read More 

RRG Charts

Equities (SPY) is the only asset class at positive RRG Heading

by Julius de Kempenaer

The Relative Rotation Graph shows the relative positions of various asset classes (ETFs) against VBINX, a Vanguard balanced index fund, as the benchmark. The long tails for Real Estate and Commodities stand out, as well as the cluster of fixed income related asset classes inside the red oval. The strongest clue, on this RRG chart, however, is coming from SPY which is the only asset class inside the leading quadrant AND the only asset class moving at a positive RRG-Heading. The weak rotation for the US dollar index theoretically suggests that Read More 

RRG Charts

Combining RRG and the (dynamic) yield curve tool extended

by Julius de Kempenaer

In one of my recent articles, I high lighted that Relative Rotation Graphs can do (much) more than just show equity sector rotation by showing how RRG can be used to analyze rotation among the different commodity groups against a broad commodity index. This post expands on a recent article in the Chartwatchers newsletter and points out the importance of asset allocation and shows how you can combine the relative rotation of the various segments of the (US) yield curve with the, relatively unknown, dynamic yield curve tool that we have available here on Read More 

RRG Charts

PFE takes the lead in Health Care sector rotation

by Julius de Kempenaer

The Relative Rotation Graph shows the rotation of the Health Care sector over the last five weeks against SPY. The dimmed trails are the other US sectors. The strong rotation from improving into leading at a steady positive RRG-Heading (0-90 degrees) suggests that further improvement against SPY is likely. In this blog, I will take a closer look at the individual members of the Health Care sector and identify some stocks to watch more closely for out- and under-performance. Summary Healthcare sector Read More 

RRG Charts

Value seems to be taking over from growth while small-caps are losing ground

by Julius de Kempenaer

Every now and then I run a Relative Rotation Graph showing the rotation of various size and value/growth indices for the US market. They (can) give good insights into what areas of the stock market are in favor and which ones are rotating out of favor. At the moment these rotational patterns are showing a loss of relative momentum for small-cap stocks and a rotation from growth to value, at least temporary. Relative rotation of size segments in the stock market The Relative Rotation Graph above shows the rotation for the three size-segments of the US Read More 

RRG Charts

Relative Rotation Graphs can show (much) more than just equity sectors (extended)

by Julius de Kempenaer

Relative Rotation Graphs are a great tool to visualize equity sector rotation and they are probably most used for that purpose. However, there are many more areas where RRGs can be used to get a big picture view of what is going on among a group of securities or related financial instruments. A shorter version of this article appeared in the Chartwatchers newsletter of  Saturday 8/4. Commodities One of these areas is commodities. Here at Stockcharts.com commodities are regularly commented on by Greg Schnell, among others, who even has the commodities countdown blog Read More 

RRG Charts

Relative Rotation Graph showing strong rotation from Energy (XLE) to Staples (XLP)

by Julius de Kempenaer

The current Relative Rotation Graph for US sectors is sending a very clear message for two sectors! Money is flowing OUT of Energy stocks (XLE) and INTO Staples (XLP). The opposite rotation for those two sectors is almost jumping off the screen when you open up this RRG. It is not every day that such a clear opposite rotation shows up hence it deserves my attention ;) Both sectors are showing a very long, and powerful, tail. The Energy sector in recent weeks rotated from a strong position inside the leading quadrant into the weakening quadrant while Read More 

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