RRG Charts

May 2019

RRG Charts

Spotting Strength And Weakness Inside The Financial Sector (XLF)

by Julius de Kempenaer

Looking at the Relative Rotation Graph showing the sectors of the S&P 500, we can see that the tail on the Financials sector stands out, having seen a big increase since last Friday. Over the last 12-13 weeks, Financials rotated from the lagging into weakening quadrant, then moved sharply back down to lagging and then back up to improving again. The move currently underway from the previous observation (last Friday) on the weekly RRG above is especially interesting to watch, as there is a much longer distance between the two observations than what we Read More 

RRG Charts

What Does It Mean When The US Starts Outperforming Other International Stock Markets?

by Julius de Kempenaer

Stock markets around the world are giving mixed signals. Returns over the last 5 weeks have varied from +4% in Australia to -10% in China. The Relative Rotation Graph above shows the relative trends that are currently in play among the various international stock market indexes. For a pure, and thus better, comparison of the various (trends in) performances, I use INDEXES instead of ETFs. If you want to read or re-read more about the reason why, please take a look at this article. When I started to study the tails for various indexes in the RRG above, I Read More 

RRG Charts

Gold Pops As The Stock Market Drops

by Julius de Kempenaer

After a struggle with resistance around its previous high of 2940, the S&P 500 index failed to break and started to come down off of its highs. A lot of political and fundamental issues and news are influencing the behavior of market participants at the moment; this uncertainty has resulted in a rally of the VIX index for the time being. In times like these, people start to look for safe havens, such as (government) bonds - preferably at short maturities - or defensive sectors, but also GOLD. Read More 

RRG Charts

S&P Executes Wedge And Rotation To Defensive Sectors Accelerates

by Julius de Kempenaer

Since printing its high on 1 May, the S&P 500 has struggled to keep up and make its final push through resistance. Over the last three to four days, the bulls have capitulated, putting a reinforcement of the 2940-2950 resistance zone into place. The rising wedge formation that had been building up since March has now executed. On the daily relative rotation graph for US sectors, the rotation to the more defensive sectors is now accelerating with Health Care, Utilities and Real Estate all inside the improving quadrant and rapidly heading towards leading at a Read More