RRG Charts

September 2016

RRG Charts

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 

RRG Charts

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