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

AAPL rotating opposite to BA on Relative Rotation Graph for $INDU

by Julius de Kempenaer

Watching the 30 members of the Dow Jones Industrials index on a Relative Rotation Graph always provides a great insight into what's going on under the hood of that universe. The first quick takes from the graph above are a fairly evenly spread universe with no big outliers and AAPL heading into the weakening quadrant while still at the second highest JdK RS-Ratio reading. Also on the right-hand side of the RRG, we find BA moving opposite of AAPL into the leading quadrant from weakening, these are usually strong relative moves. Inside the leading quadrant Read More 

RRG Charts

Commodities completely detached from other asset classes and equities picking up over bonds again

by Julius de Kempenaer

This Relative Rotation Graph for Asset Classes shows Commodities (DJP) far away in the bottom-left corner of the chart, completely detached from the others. At, by far, the lowest readings on the JdK RS-Ratio axis, DJP moved higher on the JdK RS-Momentum axis for a few weeks but recently turned left again, diving even deeper into the lagging quadrant. The Asset Class Rotation remains characterized by still NO asset classes inside the leading quadrant at all and only one, SPY (Equities), at the right-hand side of the graph. This makes a very good visualization for Read More 

RRG Charts

Are you looking at Industrial (XLI) stocks? ..Maybe you should.

by Julius de Kempenaer

This Relative Rotation Graph holds the top 50 (based on market cap) members of the S&P 500 Industrials sector index (XLI). This sector accounts for just over 10% of the S&P 500 market cap and is the fifth largest sector in this index. At the moment it does not seem to get the attention it might be deserving. In the chart above a few stocks immediately catch the attention. Very clearly in the lagging quadrant, we see GWW shooting further down into negative territory on a 225 degree RRG-Heading. Just behind it are PCAR and FAST at similar Read More 

RRG Charts

Will Technology (XLK) continue to lead the market higher?

by Julius de Kempenaer

The Relative Rotation Graph for US sectors shows four sectors with rotational patterns that catch the eye and deserve a further investigation. Inside the lagging quadrant, these are Energy (XLE) and Financials (XLF) and inside the leading quadrant, I am looking at Technology (XLK) and Consumer Discretionary (XLY). The balance of power on the RRG above is shifted to the leading quadrant. Five of the ten sector-ETFs on the RRG are positioned inside the leading quadrant (XLP, XLU, XLV, XLY, and XLK) with one inside the improving quadrant (XLRE). No sectors are Read More 

RRG Charts

Tech stocks inside $INDU looking good on RRG but avoid IBM and financials.

by Julius de Kempenaer

The Relative Rotation Graph for the 30 DJ Industrials (INDU) stocks once again presents us with some interesting insights. From the picture above we can read that AAPL is still the strongest stock in this universe with the highest JdK RS-Ratio reading and still inside the leading quadrant. Inside the leading quadrant, but more towards the center of the chart, we find a cluster of stocks that deserve a closer look as they may hold good upward (relative) potential. Within the top-left, improving, quadrant KO and INTC are on track towards leading at strong RRG Read More 

RRG Charts

No asset class in leading quadrant on RRG but SPY still strongest!

by Julius de Kempenaer

The Relative Rotation Graph for asset classes shows that not a single category is inside the leading quadrant at the moment and only one asset class, equities (SPY), is on the right-hand side of the plot. The quick take from this reading is that only SPY, asset class equities, is in a relative uptrend against VBINX but losing momentum, hence positioned inside the weakening quadrant. The good news is that the distance from its current position to the 100-level on the Jdk RS-Ratio axis is still big enough to possible turn back up into the leading quadrant without crossing over into Read More 

RRG Charts

Utilities (XLU) moving into leading quadrant, what are the strongest (and the weakest) stocks for this sector?

by Julius de Kempenaer

The Relative Rotation Graph above holds the stocks that, together, make up the Utilities sector index (XLU). The keen observer may notice that there is one stock, NRG, positioned in the "gutter" of the chart. This is done on purpose as NRG is so far out to the right of the graph that it compresses all other stocks if I would include it, properly positioned, on the RRG. I will have a look at NRG further down in this post. The stocks inside the weakening and the lagging quadrant can fairly easily be identified. Same for Read More 

RRG Charts

RRG suggests favoring Europe over US and Hong Kong over Japan

by Julius de Kempenaer

The Relative Rotation Graph above holds some the major world market indices and compares them to the FTSE all world index ($FAW) as the benchmark. Straight from the RRG above we can make a few interesting observations.  Starting in the lagging quadrant, we find continued weakness for China ($FTX) and Canada ($SPTSE), with China doing slightly better than Canada as it is already picking up a bit of relative momentum. Both markets are still heading lower on the JdK RS-Ratio scale. In the weakening quadrant, the one that stands out is the Japanese NIKKEI Read More 

RRG Charts

Three breaks and you're out .....

by Julius de Kempenaer

This post looks at the rotation of US sectors again. The Relative Rotation Graph above holds the ETFs that track the performance of US sectors. Pretty much immediately the attention goes out to the Energy sector (XLE) and the Financials sector (XLF) as they stand out because of the length of their tails. Another combination worth keeping an eye on is the opposite rotation of Technology (XLK) versus Materials (XLB). Inside the improving quadrant, we find four sectors which are all slowing down their advance on the JdK RS-Momentum scale or already declining, Real-Estate being Read More 

RRG Charts

There are two Energy stocks inside $INDU.....

by Julius de Kempenaer

And they both show very weak rotations on the Relative Rotation Graph of the DJ Industrials components. XOM rotated negatively while inside the lagging quadrant and CVX just crossed over into the lowe-left part coming from weakening. These are the two names to avoid in this universe.  They are closely followed by the stocks in the red-shaded area, VZ, INTC, and GE. Inside the improving quadrant, there are a few names that stand out. These are V and CSCO inside the blue circle. Both show good RS-momentum and improvement on the Read More 

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