RRG Charts

March 2017

RRG Charts

Three breaks and you're out .....

by Julius de Kempenaer

This post looks at the rotation of US sectors again. The Relative Rotation Graph above holds the ETFs that track the performance of US sectors. Pretty much immediately the attention goes out to the Energy sector (XLE) and the Financials sector (XLF) as they stand out because of the length of their tails. Another combination worth keeping an eye on is the opposite rotation of Technology (XLK) versus Materials (XLB). Inside the improving quadrant, we find four sectors which are all slowing down their advance on the JdK RS-Momentum scale or already declining, Real-Estate being Read More 

RRG Charts

There are two Energy stocks inside $INDU.....

by Julius de Kempenaer

And they both show very weak rotations on the Relative Rotation Graph of the DJ Industrials components. XOM rotated negatively while inside the lagging quadrant and CVX just crossed over into the lowe-left part coming from weakening. These are the two names to avoid in this universe.  They are closely followed by the stocks in the red-shaded area, VZ, INTC, and GE. Inside the improving quadrant, there are a few names that stand out. These are V and CSCO inside the blue circle. Both show good RS-momentum and improvement on the Read More 

RRG Charts

Double divergence building up in SPY:IEF ratio and commodities need another rotation through lagging.

by Julius de Kempenaer

Summary Opposite rotations for Equities and Bonds on both weekly and daily RRGs Rapid weakening of commodities over past six weeks Current positioning of SPY suggests some short-term weakness before resuming trend IEF in consolidation pattern after breaking long-term uptrend Double divergence in SPY:IEF ratio points to potential corrective move ahead Commodities need to complete another full rotation before getting back in favor as an asset class again.   The Relative Rotation Graph above holds a set of Read More