RRG Charts

July 2018

RRG Charts

Relative Rotation Graph showing strong rotation from Energy (XLE) to Staples (XLP)

by Julius de Kempenaer

The current Relative Rotation Graph for US sectors is sending a very clear message for two sectors! Money is flowing OUT of Energy stocks (XLE) and INTO Staples (XLP). The opposite rotation for those two sectors is almost jumping off the screen when you open up this RRG. It is not every day that such a clear opposite rotation shows up hence it deserves my attention ;) Both sectors are showing a very long, and powerful, tail. The Energy sector in recent weeks rotated from a strong position inside the leading quadrant into the weakening quadrant while Read More 

RRG Charts

Is Walt Disney (DIS) ready to rumble?

by Julius de Kempenaer

While working on my previous article, one stock, in particular, drew my attention. I only casually addressed it in that article as I wanted to do a more extensive review separately. We are talking about Walt Disney (DIS). In this post, I will try to build a longer-term picture with the evidence piling up to support a big move. The Relative Rotation Graph above shows the stock in isolation against SPY over the last 30 weeks. The tail shows that DIS started losing relative momentum well before it was able to reach the leading quadrant. Read More 

RRG Charts

NKE poised for a further rally and outperformance vs $INDU

by Julius de Kempenaer

Watching the Relative Rotation Graph of the 30 Dow stocks, there are a few observations that can be made. To begin with, there is a high concentration of stock inside the leading quadrant, including some mega-cap names like AAPL and MSFT and in the improving quadrant. The bottom half of the RRG holds only 8 stocks. Three in weakening and 5 inside lagging. It suggests that the current breadth of the market is still broad-based. Summary Majority of Dow stocks in upper half of RRG CAT expected to continue Read More 

RRG Charts

It's hard to believe but some markets are (starting to) outperform(ing) the US...

by Julius de Kempenaer

This is an extended version of the recent RRG article in Chartwatchers "Checking out the land down under on a Relative Rotation Graph". Even if your investment portfolio is tied to a specific country or region it makes sense to keep an eye on developments around your geographical area of interest. Relative Rotation Graphs will help you keep an eye on the relative position and rotation of your specific area versus the rest of the world. On the Relative Rotation Graph above I have grouped a selection of world equity market indices, mainly some big Read More