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

Is Walt Disney (DIS) ready to rumble?

by Julius de Kempenaer

While working on my previous article, one stock, in particular, drew my attention. I only casually addressed it in that article as I wanted to do a more extensive review separately. We are talking about Walt Disney (DIS). In this post, I will try to build a longer-term picture with the evidence piling up to support a big move. The Relative Rotation Graph above shows the stock in isolation against SPY over the last 30 weeks. The tail shows that DIS started losing relative momentum well before it was able to reach the leading quadrant. Read More 

RRG Charts

NKE poised for a further rally and outperformance vs $INDU

by Julius de Kempenaer

Watching the Relative Rotation Graph of the 30 Dow stocks, there are a few observations that can be made. To begin with, there is a high concentration of stock inside the leading quadrant, including some mega-cap names like AAPL and MSFT and in the improving quadrant. The bottom half of the RRG holds only 8 stocks. Three in weakening and 5 inside lagging. It suggests that the current breadth of the market is still broad-based. Summary Majority of Dow stocks in upper half of RRG CAT expected to continue Read More 

RRG Charts

It's hard to believe but some markets are (starting to) outperform(ing) the US...

by Julius de Kempenaer

This is an extended version of the recent RRG article in Chartwatchers "Checking out the land down under on a Relative Rotation Graph". Even if your investment portfolio is tied to a specific country or region it makes sense to keep an eye on developments around your geographical area of interest. Relative Rotation Graphs will help you keep an eye on the relative position and rotation of your specific area versus the rest of the world. On the Relative Rotation Graph above I have grouped a selection of world equity market indices, mainly some big Read More 

RRG Charts

Special benchmarks for Relative Rotation Graphs

by Julius de Kempenaer

Last week Thursday (6/21) was the third Thursday (try saying that out loud ;) ) of the month. The day that I join Tom and Erin in the Market Watchers Live show to talk about Relative Rotation Graphs. In the show, which you can play back here, I talked about different universes, open and closed, and the effect of different benchmarks. Summary Open and closed universes Special benchmarks $ONE @FIVEPCT Universes and benchmarks Read More 

RRG Charts

The BIG picture in ONE picture

by Julius de Kempenaer

Note 1: This article was posted earlier as part of the ChartWatchers newsletter last weekend. One paragraph and an up-to-date daily version of the Relative Rotation Graph for asset classes has been added to the bottom of this article. Note 2: A pre-populated universe for Asset Allocation has been added to the Groups drop-down. Relative Rotation Graphs® originally emerged out of my work on sector (rotation) analysis while employed as a sell-side analyst providing services to institutional clients. Shortly after the first introduction as a tool to visualize Read More 

RRG Charts

Technology sector rotating back to leading while Discretionary/Staples spread widens further

by Julius de Kempenaer

The Relative Rotation Graph shows the rotation of the ten S&P 500 sector ETFs (SPDR family) against the S&P 500 index ETF (SPY). The rotation of the technology sector (XLK) back into the leading quadrant after a short period of rotation through the weakening quadrant is s strong sign. The spread between the Consumer Discretionary- and Consumer Staples sectors continues to widen further and seems to be entering another leg up in its relative strength line. A strong relative strength for Discretionary over Staples is usually a bullish indication for the general Read More 

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Combining Relative Rotation Graphs and the "Turtle Soup" setup

by Julius de Kempenaer

On Monday 21 and Tuesday 22 May I stepped in for Erin Swenlin and acted as the co-host to Tom Bowley in the Market Watchers Live show. Clearly, we talked a lot about RRGs but as MWL is not all about RRG I wanted to bring something different to the table. Ever since Relative Rotation Graphs came to life I told people to use them in combination with "something else" as using them (or any other available TA-tool) in isolation would be too limited IMHO. Whatever "something else" should be is totally up to the user and should, I think, depend on their risk appetite Read More 

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Beat the Energy sector by avoiding XOM & CVX

by Julius de Kempenaer

In the previous RRG blog, I introduced the availability of pre-populated groups holding individual equities for each of the ten S&P sectors. This addition makes it much easier for users of the Relative Rotation Graph tool on Stockcharts.com to drill down to the individual equity level from asset class and/or sector level. In this article, I want to grab the bull by the horns and zoom in on the current equity rotation inside the Energy sector (XLE). Summary XLE leading the market and the only sector Read More 

RRG Charts

New pre-populated universes for Relative Rotation Graphs

by Julius de Kempenaer

If you have ever watched one of the webinars or Market Watchers Live shows that I have done here at Stockcharts.com, you may have seen me use Relative Rotation Graphs holding individual stocks and compare them to their sector benchmark. After each appearance, I always got a few questions on how to do that and in 2015 I wrote an article, including a video, on how you could set up your own RRGs holding individual stocks based on the constituents of (SPDR) ETFs tracking the various sectors. Including a video showing the process. As it is a bit of a tedious task and on Read More 

RRG Charts

Commodities taking over from equities?

by Julius de Kempenaer

For a very long time equities have been the dominating asset class, stuck at the right-hand side of the Relative Rotation Graph showing six different asset classes. That situation is now changing. Equities (SPY) is still at the right hand (positive) side of the RRG but inside the weakening quadrant, since seven weeks, and heading towards the lagging quadrant. Fixed income related asset classes are all inside the improving quadrant and rotating towards leading while Real-Estate is showing a very wide rotation with a very long tail and showing up at the highest Jdk Read More 

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