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

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 

RRG Charts

Double divergence building up in SPY:IEF ratio and commodities need another rotation through lagging.

by Julius de Kempenaer

Summary Opposite rotations for Equities and Bonds on both weekly and daily RRGs Rapid weakening of commodities over past six weeks Current positioning of SPY suggests some short-term weakness before resuming trend IEF in consolidation pattern after breaking long-term uptrend Double divergence in SPY:IEF ratio points to potential corrective move ahead Commodities need to complete another full rotation before getting back in favor as an asset class again.   The Relative Rotation Graph above holds a set of Read More 

RRG Charts

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

by Julius de Kempenaer

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 Read More 

RRG Charts

Sector rotation from Energy to Utilities, market in transition

by Julius de Kempenaer

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 Read More 

RRG Charts

AAPL starting to lead technology sector rotation again

by Julius de Kempenaer

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 Read More 

RRG Charts

RRG shows money flowing into commodities!

by Julius de Kempenaer

The Relative Rotation Graph holding a number of asset class ETFs is showing a strong push of commodities (DJP) into the leading quadrant. Together with Real Estate (VNQ), these two asset classes are showing the most powerful headings in combination with the longest tails. They deserve a further investigation. Summary All tails, except one, showing a positive heading VNQ picking up relative strength again Equity/Bond ratio expected to pull back before further advance Long tail Read More 

RRG Charts

Is JNJ the pink elephant in the XLV room?

by Julius de Kempenaer

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. Summary Read More 

RRG Charts

Rotation from Financials into Health care? Two sectors at extremes.

by Julius de Kempenaer

The Relative Rotation Graph below holds the sector ETFs that make up the S&P 500 universe and uses the S&P 500 index ETF (SPY) as its benchmark in the center of the graph. Four rotational patterns, two pairs, capture my attention when I look at this chart. Summary Financials and Health Care at opposite extremes Relative momentum on both sectors (XLF & XLV) rolling over creates opportunity Materials and Technology rotating in opposite directions and about to turn relative trend around Read More 

Subscribe to RRG Charts to be notified whenever a new post is added to this blog!