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 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 

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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 

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Tech stocks losing IT

by Julius de Kempenaer

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. Summary Sector rotation from Technology to Financials clearly visible on RRG Read More 

RRG Charts

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

by Julius de Kempenaer

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.   Summary Read More 

RRG Charts

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

by Julius de Kempenaer

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. Summary High number of stocks inside leading quadrant indicate broad participation FCX, NUE, and FMC showing strong rotation into leading quadrant, backed by long tails CF, strong but at a flat tail Read More 

RRG Charts

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 

RRG Charts

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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