RRG Charts

Sector Spotlight: H&S Formation Calls for BIG Move

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On this edition of StockCharts TV's Sector Spotlight, I take a chance and bring in seasonality for next month. Usually, we do that on the last Tuesday of the month, but this time the last Tuesday (next week) falls exactly on the last day of August and we will be looking at monthly charts then.

I start the show with a look at rotations in asset classes last week and how they blend in with the current weekly rotations on the Relative Rotation Graph. The main takeaway here is the strength for the USD against most other major currencies on the RRG, which is backed by the completion of a large Head & Shoulders top formation in EUR/USD ,which calls for a major move lower (+ strength for USD). From a seasonal point of view, there are no clear signals that we can follow up with. Industrials would be the sector to look for, but the current rotation and the behavior on the chart completely negates the expected seasonal strength.

This video was originally broadcast on August 24, 2021. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the StockCharts TV on-demand website StockChartsTV.com, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.

Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.

#StaySafe, -Julius

Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
CreatorRelative Rotation Graphs
FounderRRG Research
Host ofSector Spotlight

Please find my handles for social media channels under the Bio below.

Feedback, comments or questions are welcome at Juliusdk@stockcharts.com. I cannot promise to respond to each and every message, but I will certainly read them and, where reasonably possible, use the feedback and comments or answer questions.

To discuss RRG with me on S.C.A.N., tag me using the handle Julius_RRG.

RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.

Julius de Kempenaer
About the author: 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). Learn More
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