One of the great additions to StockCharts in 2014 was the RRG Charts. They help us visualize an entire group of stocks relative to the $SPX or whatever indicator you choose to compare to.
When everything is pointing to the top right, the industry group is in an uptrend. By pointing to the southwest, this is a problem. It currently shows all of the railroads getting weak as a group. With 6 of the 12 firmly in the weakest quartile, it is important for investors to be cautious with the group. CSX reports January 14th, 2015 which is next week.
Here is a link to the chart. Railway RRG. It is very important to see how this resolves through the earnings period, especially with the forward guidance.
Good trading,
Greg Schnell, CMT
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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