RRG Charts

Sector Spotlight: Yield Curve Supports Further Strength for Stocks


On the first 2022 edition of StockCharts TV's Sector Spotlight, I look back at rotations that happened over the holiday period and then address the monthly charts that completed in December. The long-term trend in the yield curve shows a rapid flattening in December and, historically, that seems to be supportive for strength in the stock market. Seasonality in January and going into the first quarter looks like a mixed bag. The market itself (SPX) is 50/50, with a flat return on average in January. I pick out a few sectors showing above average odds for out- or underperformance in January and find that there seems to be healthy seasonality for the health care sector at the start of the year.

This video was originally broadcast on January 4, 2022. 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.

I also recently hosted an episode ofthe StockCharts TV special event "The Top 10 Influential Market Events of 2021", available to watch on demand at StockChartsTV.com and the StockCharts YouTube channel. I take a look at the major rotations that played out in 2021, observing that there is a clear distinction between sector rotation in the first and the second half of the year. Showing the Relative Rotation Graph and the price charts side by side, I then talk you through the rotations of the five sectors that showed the biggest opposite rotations and performances in the first half vs. the second half of the year.

#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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