RRG Charts

August 2017

RRG Charts

Is TECHNOLOGY now a defensive sector?

by Julius de Kempenaer

The Relative Rotation Graph above shows the US sector universe based on S&P 500 indices (ETFs). Two sectors stand out on this chart. These are Energy (XLE) inside the improving quadrant but at low levels on the JdK RS-Ratio axis, and Financials (XLF) inside the Leading quadrant which has just lost a bit of relative momentum (JdK RS-Momentum scale). Inside the lagging quadrant both Consumer sectors, -staples and -discretionary are moving lower on the RS-Ratio scale more or less in tandem and recently picked up a bit of JdK RS-Momentum. The Read More 

RRG Charts

PG and PFE at similar location on RRG but one of them looks much stronger

by Julius de Kempenaer

  The Relative Rotation Graph above holds the 30 stocks that make up the Dow Jones Industrials Index and compares their relative rotation to $INDU. From the first observation of this chart, a few tails/stocks catch the eye. First, there is BA in the top-right, leading, quadrant still powering further on both axes. Also inside or just entering the leading quadrant are NKE and JPM. Both seem to have a strong RRG-Heading but last week's price action does not look very supportive. I prefer a wait and see approach in such cases. Inside the Weakening quadrant Read More