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

Using Relative Rotation Graphs(R) to get a handle on both price- and relative rotation in ONE picture

by Julius de Kempenaer

In my last blog, we looked at the 30 components of the Dow Jones Industrials Index and more specifically at the relative positioning and relative rotation of these 30 stocks around their common denominator the DJ Industrials index ($INDU). And despite the fact that this is valuable information you may want to keep an eye on the (absolute) price trends that are in play within that universe as well. The good news is that no new tools are needed to do that as Relative Rotation Graphs are fully capable of providing its “BIG picture in ONE picture” visualization from an Read More 

RRG Charts

Selecting stocks to watch (and avoid) in the Dow 30 using Relative Rotation Graphs(r)

by Julius de Kempenaer

  The Relative Rotation Graph shows the members of the DJ Industrials index against $INDU. This is a so-called closed universe which means that all elements that make up the universe are present in the plot. If we would calculate all the distances (vectors) from the center of the chart to the various stocks (market cap weighted) and add them up the result would be zero. The two stocks that immediately stand out are GE and MRK, although both are showing an uptick in relative momentum (rising JdK RS-Momentum)they remain deep inside the lagging quadrant. Read More 

RRG Charts

Relative Rotation Graphs suggest to stick with equities (SPY) while keeping an eye on commodities (DJP) going into 2018

by Julius de Kempenaer

As 2017 draws to an end, the Relative Rotation Graph for asset classes is sending a very clear message! Equities are leading the way into 2018! The RRG above shows some ETFs representing various asset classes and uses VBINX, a balanced index fund, as the benchmark. With only SPY, representing the asset class equities, inside the leading quadrant and ALL others inside the lagging quadrant, the message could not be more clear. Summary All fixed income related asset classes are inside the lagging quadrant With only Read More 

RRG Charts

RRG shows two sectors continuing to carry SPY higher and three sectors to avoid going into the new year

by Julius de Kempenaer

The Relative Rotation Graph for US sectors is showing us three sectors to avoid but also two which may offer good potential. Inside the leading quadrant, we find XLK and XLF still being the strongest sector in US equity market based on their JdK RS-Ratio reading. Energy (XLE) started heading due South almost immediately after entering the leading quadrant and now even turned back into improving while very close to the center (benchmark) of the RRG. XLRE (Real Estate) and XLU (Utilities) are inside lagging but heading upward on the JdK RS-Momentum scale. Short Read More 

RRG Charts

Responding to comments and answering questions from MWL last week

by Julius de Kempenaer

  Last week Wednesday (29 November) I was the guest of Tom and Erin in the Market Watchers Live show. During the show, we talked a lot about RRG, Relative Rotation Graphs, covering some basics and some new(er) techniques and interpretations that I have been working on. If you missed the show you can watch the recording on the MWL youtube channel here. MARKET WATCHERS LIVE 11.29.17 As you may know, people can post comments or pose questions in the sidebar during the show. I have tried to answer questions and respond to comments during the show, but I Read More 

RRG Charts

GE in freefall while WMT is shooting for the stars on Relative Rotation Graph for $INDU

by Julius de Kempenaer

Above is the Relative Rotation Graph for the DJ Industrials index, comparing the relative rotation of all members around $INDU. On this chart, a few stocks stand out because of their clear directional moves. Inside the leading quadrant, INTC, CSCO, and WMT are pulling away from the crowd further into positive territory. Inside the lagging quadrant, on the other hand, PG, MRK, and especially GE are heading in the opposite direction. Summary GE in steep drop in both price and relative charts Relative downtrend for Read More 

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Energy sector bursting into leading quadrant on Relative Rotation Graph, strong potential for EOG and COP

by Julius de Kempenaer

The Relative Rotation Graph above shows all the members of the S&P 500 Energy sector against XLE, the ETF that tracks the Energy sector price index. The main reason for looking at this universe at the moment is the fact that the sector (XLE) on the RRG for US sectors is about to burst into the leading quadrant (chart further down in the article). The chart above highlights a few areas of interest which I will dive into a bit deeper. We will investigate the cluster of stocks inside the weakening quadrant as well as the cluster of stocks on the Read More 

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Once again, strong rotation for SPY vs other asset classes on RRG

by Julius de Kempenaer

  The Relative Rotation Graph above holds six ETF that represent various asset classes. The picture gives you the big picture of what is going on at asset class level on a relative basis against VBINX which is a Vanguard balanced index fund (60% equity / 40% bonds). This one frame immediately makes crystal clear that, from a relative point of view, there is only one asset class that is outperforming the benchmark and that is equities (SPY).   Summary Watch DJP for a break above $ 25 Read More 

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RRG suggests sector rotation out of Real Estate (XLRE) into Industrials (XLI)

by Julius de Kempenaer

The Relative Rotation Graph for US sectors shows seven sectors clustered around the benchmark in the middle of the graph (SPY) and three of them further away. XLE is more or less detached from the rest of the universe while XLP and XLY are breaking away together and heading deeper into the lagging quadrant. Within the cluster of sectors closer to the center of the chart, Real Estate (XLRE) and Industrials (XLI) are showing interesting rotational patterns backed by long(er) tails.   Summary Read More 

RRG Charts

INTC and PFE expected to dominate relative rotation in $INDU while NKE, DIS, and TRV are lagging

by Julius de Kempenaer

Plenty of actionable rotation towards the edges of the Relative Rotation Graph above. The RRG holds the 30 members of the Dow Jones Industrials index. Scanning around the outside of the chart the following stocks draw the attention. In the weakening quadrant, MCD is at the lowest JdK RS-Momentum reading and heading lower on the JdK RS-Ratio axis, towards the lagging quadrant. Also, MSFT and UNH have just rotated into the weakening quadrant from leading. Already inside the lagging quadrant, the weakest rotations are seen for DIS, NKE, TRV, and UTX.  Close to the Read More 

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