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

Plotting breadth indicators on Relative Rotation Graphs - Part I

by Julius de Kempenaer

In my contribution to last week's Chartwatchers newsletter, I mentioned my current experiment on using breadth indicators on a Relative Rotation Graph. In this article, I want to take a look at a few of these setups side by side and see if there is indeed a leading tendency for breadth to lead price on the RRG as it tends to do on regular charts as well. I remember sitting in on a presentation by Greg Morris at the CMTA symposium a few years ago when he was talking on breadth indicators. In that talk Greg used the quote: "Breadth arrives at a party on time Read More 

RRG Charts

Using RRG to find some good and some not so good names inside the DJ Industrials index.

by Julius de Kempenaer

The relative rotation graph above shows the rotation of the 30 DJ Industrials stocks. Watching the interaction on the canvas, a few rotations catch the eye. Inside the lagging quadrant IBM, HD, and DWDP are clearly moving deeper into negative territory. On the opposite side inside the leading quadrant, we find MCD, WBA, PG, and WMT at strong RG headings moving higher on both axes. In the weakening quadrant, the most pronounced rotations are visible for Nike and Apple. Both stocks have gone through a strong rotation and are now rapidly losing Read More 

RRG Charts

Some utility stocks worth paying attention to

by Julius de Kempenaer

The relative rotation graph above shows a selection of stocks in the utilities sector. I have created this zoomed in version for better visibility. The fully populated RRG can be found here. In this post, I will highlight a few of the stocks shown in the picture. As XLU is now one of the sectors inside the leading quadrant vs SPY and continuing higher on both axes. I will focus on a few names that are expected to fuel further relative strength in utility stocks but also point to one that is better avoided. Summary Read More 

RRG Charts

Two stocks in the Consumer Staples sector that could offer shelter when needed.

by Julius de Kempenaer

In this blog post, I want to do a quick top-down analysis to arrive at a few stocks that could help investors to provide shelter in case the current hiccup in the market is .. well a "hiccup."  The Relative Rotation Graph above shows the rotation of various asset classes around a balanced benchmark portfolio (VBINX). The quick observations that we can make from this picture are that the cluster of fixed income related asset classes is, still, moving inside the improving quadrant and close, to crossing over, to the leading quadrant Read More 

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 

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