RRG Charts

Bye bye NVDA, WDC, MU and Hello, ADBE, AAPL, SWKS

Summary

  • XLK only sector inside leading quadrant for S&P 500 universe
  • QCOM nosediving inside Lagging quadrant
  • NVDA rapidly losing its top position within the sector
  • WDC tracking MU lower into the weakening quadrant
  • GLW providing excellent example of stable uptrend (price and relative)
  • ADBE pushing into leading from improving
  • AAPL and SWKS rotating back into leading from weakening

 

Quick scan

The Relative Rotation Graph above holds the members of the S&P 500 Technology Index as included in the XLK sector ETF.

A few observations that can be made right from the start studying this graph. On the far right-hand side of the plot, we see three stocks, sharply, heading lower from the leading quadrant into the weakening quadrant. These are WDC, MU, and NVDA. Reading the RRG chart and looking at their position and rotational pattern we can immediately make the assumption that these three have been very strong stocks leading the sector but now losing pace. 

Continue reading "Bye bye NVDA, WDC, MU and Hello, ADBE, AAPL, SWKS" »

Sector rotation from Energy to Utilities, market in transition

Summary

  • NO sectors inside the lagging quadrant and only one in leading
  • Sector rotation suggests market in transition
  • Financials continue to loose ground vs Healthcare
  • Technology picking up against Materials
  • Sector rotation from Energy to Utilities starting to shape up

 

Quick scan

A first look at the Relative Rotation Graph above triggers two interesting observations.

First of all, there are NO sectors inside the lagging quadrant... not even one! And there is only one (materials) inside the leading quadrant.

Secondly, the tails of the sectors in this universe (S&P 500 index) are predominantly showing vertical (momentum driven) movement. 

Continue reading "Sector rotation from Energy to Utilities, market in transition" »

AAPL starting to lead technology sector rotation again

Summary

  • Inside Financials, money is shifting from GS & JPM to V
  • AAPL turning back up towards leading quadrant, makes it leading stock in technology
  • XOM and CVX confirm weak rotation for Energy sector
  • Opposite rotations for DIS and WMT inside Staples sector

 

Quick scan

The Relative Rotation Graph above holds the 30 components of the Dow Jones Industrials Index ($INDU). The two stocks that immediately stand out are GS and JPM at very high JdK RS-Ratio levels but heading sharply down on the JdK RS-Momentum scale.

Continue reading "AAPL starting to lead technology sector rotation again" »

Is JNJ the pink elephant in the XLV room?

The Relative Rotation Graph above holds the constituents of the XLV (Health Care) ETF. In this post, I want to follow up on my previous article which pointed at the potential rotation from Financials into Health Care and take a look at the relative rotation of individual stocks that make up the sector, against XLV as the benchmark.

Over the past week, the relationship improved a little bit for Health Care, but it still is a somewhat "gutsy" view. Not yet a trend that is well underway, so beware.

Continue reading "Is JNJ the pink elephant in the XLV room?" »

Tech stocks losing IT

From July to November of this year Tech stocks have dominated the performance of the Dow Jones Industrials Index ($INDU) but then came November!

The Relative Rotation Graph of all DJ Industrials stocks below shows the rotational pattern of all $INDU members with a three-week tail. 

The recent weakness for Technology and the subsequent takeover of sector rotation towards Financials is clearly visible on the RRG.

Continue reading "Tech stocks losing IT" »

What the ....happened in the week ending 11 November?

My last article on asset allocation was posted just before election day (11/8), and I was not happy about the rotation for equities against bonds...

What a difference a week makes.

The relative rotation graph above shows the rotation of various asset classes, represented by ETFs, over the past 13 weeks. The observations highlighted in the orange circles are those of the week ending 11 November. An unusually sharp turn reversed some major relative trends that were underway until then.

 

Continue reading "What the ....happened in the week ending 11 November?" »

Put some focus on the materials sector (XLB) but be aware of which stocks to avoid.

Last weeks RRG blog looked at the sector ETFs that make up the S&P 500 index. Materials, the XLB ETF, came out as one of the, more promising, sectors on its way to the leading quadrant.

In this post, I will look into the individual stocks that make up that materials sector.

Continue reading "Put some focus on the materials sector (XLB) but be aware of which stocks to avoid." »

Very clear rotational picture in US sectors! Watching XLE, XLI and XLB for opportunities

The Relative Rotation Graph above shows the rotational picture for US sectors. For a change the rotations are well defined and clearly visible, which immediately raises the question; " For how long?"

I will try to answer the question, but no-one ever said it was easy.. ;)

Continue reading "Very clear rotational picture in US sectors! Watching XLE, XLI and XLB for opportunities" »