How can you use RRGs (Relative Rotation Graphs) to spot potential pair trades?
In this episode of Sector Spotlight, I explain one way to find a potential pair trading opportunity, searching for a stock with high(est) potential in a sector with high(est) potential and off-setting that position with a weak(est) stock in a weak(est) sector. I also take a look at US market rotation using growth/value indexes and size (market cap) indexes.
This episode of Sector Spotlight aired on November 19th, 2019.
Sector Spotlight episode 8, 11/19/2019
Sector Spotlight airs weekly on Tuesdays 10.30-11.00am ET. Past episodes can be found here.
About the author:Julius de Kempenaer is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on StockCharts.com in July of 2014.
After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers).