RRG Charts

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 2011 and was released on StockCharts.com in July 2014. A graduate of the Dutch Royal Military Academy and former captain in the Dutch Air Force, Julius first began his career in the financial industry in 1990 as a portfolio manager. He is now the director/owner of RRG Research in Amsterdam.

Latest Posts

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 

RRG Charts

Mixed Rotations For Technology Stocks Inside The Dow - MSFT Comes Out On Top!

by Julius de Kempenaer

The Relative Rotation Graph shows the five technology stocks inside the DJ Industrials index, all of which are at the right-hand side of the RRG. This is not surprising, considering the strong rotation of the sector as a whole against the S&P 500 index. Despite the strength of the sector, however, there are a few big differences in the relative strength and the rotation of a few of these individual names. Intel Corp - INTC On the RRG above, INTC is crossing over into the weakening quadrant following a sharp rotation down three Read More 

RRG Charts

"Hooks" And One Sided Rotations On Relative Rotation Graphs

by Julius de Kempenaer

Last Thursday, 18 April, was the third Thursday of the month, my regularly scheduled guest appearance on MarketWatchers LIVE. As Tom Bowley was enjoying a well-deserved day off, it was just me and Erin on duty. It wasn't my first time co-hosting, but every time I fill in for either Erin or Tom, it makes me realize what a great job they do every day. Since I was filling in for Tom, I'd like to make a big shout-out to him for all he does on MWL - fantastic job buddy!!! Hope you had a good long Easter weekend!! My normal slot is "Breaking it Down with RRG," Read More 

RRG Charts

The 60/40 Balanced Portfolio Just Broke To New Highs - What About Stocks vs Bonds?

by Julius de Kempenaer

For asset allocation analysis, I generally use VBINX, a balanced index fund by Vanguard that holds 60% in stocks and 40% in a mix of different bonds. This balanced portfolio (total return basis) just broke to new highs this week. Meanwhile, neither stocks (SPY) or bonds (IEF) have accomplished that, not yet at least As we all know, it's hard to argue against markets that break to new highs. VBINX in an Uptrend The VBINX chart above shows a nice uptrend out of the 2009 low, marked by a rising Read More 

RRG Charts

When In Canada.. Do As The Canadians, And Avoid The Consumer Discretionary Sector..

by Julius de Kempenaer

Last night I arrived in Toronto for a weekend with my son and his family, before heading towards New York to attend the CMTA symposium next week. So for this article, it only seems appropriate to have a look at the Canadian sector landscape from an RRG perspective. The Relative Rotation Graph above shows the rotation of the nine Canadian sector indexes (capped) against the TSX composite index ($TSX). Zooming In The picture on the RRG shows a somewhat tilted universe dragged into the upper right (leading) quadrant by the Read More 

RRG Charts

Europe vs The USA... And The Winner Is ....

by Julius de Kempenaer

I like to keep an eye on what's going on in the world around us. That means also monitoring what's happening in markets that are maybe not directly of interest when it comes to trading or investing. For stock markets around the world I like to use the pre-defined group "International Stockmarket Indexes" on the RRG page. The resulting Relative Rotation Graph populated with this group is shown above. The benchmark for this universe is the Dow Jones Global Index ($DJW). At first glance we can see five markets rapidly moving lower on the Jdk RS-Momentum scale Read More 

RRG Charts

Something that makes me go ...Hmmmmmmm?

by Julius de Kempenaer

The daily RRG for US sectors shows a lot of sectors "hooking" lower and only two sectors that are, still, at a positive RRG-Heading, ie rising on both axes. The chart above is showing a 5-day tail on every sector. if we look at the lengths and trajectories of these tails a few things catch my attention. The first observation is the ultra-short tail on the Technology sectors. XLK is positioned almost ON the horizontal axis and reading from the color just inside the weakening quadrant and it looks like a single dot. This Read More 

RRG Charts

Materials Sector Rolling over On Both The Weekly And The Daily RRG

by Julius de Kempenaer

The chart above shows the weekly rotation for the Materials sector, XLB, within the universe of US sectors against SPY. After the tail turned upward inside the lagging quadrant, XLB kept up with the performance of SPY and moderately outperformed the market until the sector started to lose relative momentum again in the week of 21 Jan and 28 Jan when the tail started to roll over downward again without having reached the leading quadrant. This loss of relative momentum, declining Jdk RS-Momentum, is still ongoing and pointing the tail on XLB towards the lagging quadrant Read More 

RRG Charts

Join Me At The Traders EXPO in New York

by Julius de Kempenaer

Here's some shameless self-promotion! On Monday 11 March I will be doing an RRG presentation at the TradersEXPO in New York and you are invited. For FREE ;) Julius presenting RRG at TradersEXPO New York I have never attended one of the TradersEXPO events let alone presented at them so it will be a new adventure and I am excited about it. I don't really know what I can expect but I am preparing for a big event with lots and lots of visitors and market participants which is always a joy to be around. In case you are in the area or if you are already Read More 

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