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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Utility stocks are boring .... really?

by Julius de Kempenaer

On the Relative Rotation Graph of the S&P economic sectors (GICS I), Utilities is one of the leading sectors as measured by the JdK RS-Ratio. As described in my last RRG blog on US sectors, the fact that Utility stocks and Staples are leading the current sector rotation, tells us something about the underlying strength (or weakness) of the S&P 500 itself. The jump higher last Friday did not change the defensive rotational pattern yet, so, for now, I will stick with a scenario holding serious downside risk for the stock market (i.e. $SPX). Generally, utility Read More 

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Staples and Utilities in the lead, what does that tell you?

by Julius de Kempenaer

Over the past few weeks markets, in general, experienced a lot of volatility and a lot of comments have are focussing on the general state and direction of the broader market indices around the world. In my last blog about US sector rotation, the conclusion was that the relative rotation of US sectors was not supportive for a rise in the S&P 500. Let's see if and how the rotational patterns have changed since then. The Relative Rotation Graph below holds the 10 (9 + Telecom) sector ETFs that make up the entire S&P 500 universe and shows the Read More 

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BrExit did not stop VZ from breaking to new highs

by Julius de Kempenaer

When you look at the Relative Rotation Graph (below) holding the members of the Dow Jones Industrials index without knowing what date the snapshot was taken you would not be able to tell that a major historical event had just happened. Obviously, I am talking about the surprising outcome of the Brexit referendum last Thursday and the market's response to that result on Friday. Thousands of words have been typed, scores of analysis reports have been published about the "as if and when" of both possible outcomes. And the markets. they just continue their rotational behavior Read More 

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How to show "currency rotation" on a Relative Rotation Graph.

by Julius de Kempenaer

Currencies or Forex are a strange beast in financial markets. The FX market is the biggest in the world with trillions of dollars (worth) traded around the clock but no central marketplace. There is no such thing as the 'New York Currency Exchange' or the 'European Currency Exchange'. If you trade in FX, you always trade 'over the counter' with your bank or a broker, etc. It is very well possible that at the exact same time someone else trades the same currency through another bank at a different price Because of the massiveness of the market and the Read More 

RRG Charts

Commodities (DJP) on the move?

by Julius de Kempenaer

The rotational pattern of the various asset classes on a Relative Rotation Graphs is showing interesting patterns at the moment. The RRG below holds a number of ETFs that cover Equities, Government Bonds, Corporate Bonds, High Yield Bonds, Real-Estate and Commodities. The benchmark is VBINX, the Vanguard Balanced Index Fund which consists of 60% Equities and 40% Bonds. Summary Commodities likely to push higher in coming weeks Real Estate going through (small) correction but remains strong(est) asset class (Government) Read More 

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FCX and NEM drive Materials (XLB) sector. Next up; FMC

by Julius de Kempenaer

The Relative Rotation Graph below holds the constituents of the Materials sector (XLB) and shows the relative rotation of these stocks against XLB. FCX and NEM stand out on this chart, way out to the right, indicating that they are the two stocks with the strongest relative trends at the moment. But there are a few other stocks in this sector that are worth a further inspection. From a sector perspective The RRG shows the current sector rotation for the US sectors inside the S&P 500 index. Despite the recent turn down on the JdK RS-Momentum scale, XLB Read More 

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US sector rotation on the move, not supporting a rise in $SPX

by Julius de Kempenaer

The last RRG blog on US sector rotation dates back to late March, about six weeks ago. Since that post "Bad health (care) for XLV" some of the rotations in play continued while others were not able to maintain their expected rotational paths and moved the other way. The Relative Rotation Graph below shows the current positions of the S&P sector ETFs vis-รก-vis the S&P 500 index (SPY) and each other. Summary XLF and XLV remain weak despite the rise of relative momentum XLK crossing over into lagging quadrant Read More 

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Trouble in Tech but opportunities in Energy

by Julius de Kempenaer

This Relative Rotation Graph holds the constituents of the Dow Jones Industrials Average ($INDU) and shows the position and movement of their relative trends against $INDU and each other. In this article, I will focus on the movements in the technology- and the energy sectors and briefly touch on financials. Summary Financials showing weakest relative trend on a sector level AXP running into resistance making further rise difficult Other financials (GS, JPM, V, TRV) showing similar patterns. Technology sector ETF Read More 

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Strong rotation for commodities, SPY and IEF (ratio) under threat

by Julius de Kempenaer

The Relative Rotation Graph below shows the rotational picture for a number of asset classes, based on ETFs, against the Vanguard Balanced index fund on a weekly basis. For some of these asset classes, the equivalent picture on a daily basis is confirming but for others it is contrarian. Or maybe I should say, confusing. Summary Commodities confirming turnaround after long downtrend Short-term pattern in VNQ suggests longer-term weakness at hand SPY:IEF ratio at proving grounds Read More 

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Bottom fishing in the Energy sector..

by Julius de Kempenaer

The energy sector has been a very poor performing sector for a very long time. However, on the Relative Rotation Graph for US sectors (ETFs), XLE is now way up inside the improving quadrant and heading right towards leading. This makes it a good sector to dissect on an individual equity level to see if there are any good buying candidates available in case this sector rotation continues in its current direction. To do this, I will work my way through the Relative Rotation Graph holding the constituents of XLE. Summary Read More 

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