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

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

by Julius de Kempenaer

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.. ;) Summary Well defined sector rotation at the moment Avoid Utilities, Staples and Health Care as they push deeper into the lagging quadrant Watch Technology as it rotates inside the weakening quadrant Financials are Read More 

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Financials are leading but they are not all equally good

by Julius de Kempenaer

After the dust has settled, it is time to assess what is going on under the hood. The above Relative Rotation Graph holds the 30 Dow Jones Industrials components. As usual, they are fairly evenly spread out over the canvas of the RRG plot.  From the RRG of the US sector ETFs (further down in this post), it is very clear that the Financial sector is leading at the moment. In this post, I want to dissect some of the individual financial components inside the Dow Jones Industrials index. Spoiler alert: They are not all equally good . Read More 

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How to use Relative Rotation Graphs to monitor your portfolio.

by Julius de Kempenaer

As (many of) you may know my fellow commentator Arthur Hill lives in Belgium. That makes him, geographically, my closest StockCharts.com colleague. On Tuesday 8 November, indeed election day, the Amsterdam chapter of the MTA (Market Technicians Association) had Katie Stockton of BTIG over as a guest speaker for a breakfast presentation. Katie is a highly respected technical analyst among institutional investors and an early adapter of Relative Rotation Graphs which are now fully embedded in her workflow. Arthur made the trip over to Amsterdam to attend the Read More 

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Bond market charts look horrible but they show positive rotation on RRG

by Julius de Kempenaer

The Relative Rotation Graph above shows the rotation of various asset classes against VBINX, a balanced index fund holding 60% in equities and 40% in bonds. The current rotational picture is highlighting a pretty clear rotational picture for various (groups of) asset classes. The most important observation is that all three fixed income related asset classes are showing a positive rotational picture while, at the same time, their price charts are showing horrible technical pictures. So what's the message that we can get from this? Quick Scan Read More 

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Energy stocks on the run, watch APA & APC

by Julius de Kempenaer

Quick scan The Relative Rotation Graph above shows the rotation of the various members of the S&P Energy sector against XLE as a benchmark. As usual, there are some good and some not so good names found on the plot. Inside the weakening quadrant, NFX and SWN are heading for the lagging quadrant. Already inside this lagging quadrant, we find OXY and COG showing less favorable tails, suggesting a further move into negative territory. On the positive side, we find TSO and FTI, still inside the improving quadrant but, close to crossing over into Read More 

RRG Charts

Addressing RRG - Feedback and questions from ChartCon 2016

by Julius de Kempenaer

From a 100 degrees in beautiful Napa, via 70 degrees in Boston and New Hampshire, back to 50 and dropping in Amsterdam. That pretty much sums up the excitement level that surrounds my ChartCon 2016 experience of last month! Btw. In case you are wondering, the stop-over in Boston was because one of my daughters lives there. We went on a road trip to the White mountains in New Hampshire and drove along the Kancamagus highway which provided us with some stunning views of the trees changing their colors. Almost as stunning a visual as a Relative Rotation Graph ;) Read More 

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6 out of 10 sectors rotating in(to) lagging quadrant

by Julius de Kempenaer

The Relative Rotation Graph above shows the sector rotation for ten US sector ETFs. The new REITs sector ETF is not included yet due to a lack of historical data points. The immediate catch on the RRG above is the separation of XLK and XTL in the leading quadrant while most other sectors are on the left-hand side of the 100-level of the JdK RS-Ratio axis. Six sectors inside, or just rotating into, the lagging quadrant, does not get me very excited about the potential for the S&P 500 itself.   Read More 

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Tech stocks dominate sector rotation but broader market at risk

by Julius de Kempenaer

The Relative Rotation Graph below holds the components of the Dow Jones Industrials index vis-à-vis the $INDU index. The one observation that immediately stands out to me is the domination of technology stocks inside the leading quadrant. AAPL, MSFT, INTC, and CSCO are all positioned well inside the top right-hand quadrant, indicating that they are in (mature) relative uptrends against $INDU. Summary Energy sector lagging XOM in downtrend on price- and relative charts CVX about to Read More 

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Bonds under pressure and SPY no longer beating international equity markets

by Julius de Kempenaer

On the Relative Rotation Graph below, the rotation of various asset classes is shown against the Vanguard Balanced Index Fund (VBINX). The single one tail that immediately stands out is the one of DJP (Commodities). Then there are IEF (Government bonds) on the far left inside the lagging quadrant and VNQ to the far right, on the verge of crossing from leading into weakening. Inside the blue shaded area are LQD (Corporate Bonds), HYG (High Yield Bonds), and SPY (Equities). All three on a very short tail and no clear rotational path with SPY and HYG still on the positive side of the Read More 

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Facebook (FB) not able to keep up with XLK

by Julius de Kempenaer

The technology sector, as represented by XLK, started to show some positive sector rotation over the past month and last week managed to crossover from the improving quadrant to the leading quadrant on the weekly Relative Rotation Graph. Reason enough to check out the relative technical conditions for the stocks that make up XLK as shown on the Relative Rotation Graph below. Summary Positive sector rotation for XLK Mature relative uptrends for EBAY, SYMC, and NVDA NVDA probably too risky at Read More 

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