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

PG and PFE at similar location on RRG but one of them looks much stronger

by Julius de Kempenaer

  The Relative Rotation Graph above holds the 30 stocks that make up the Dow Jones Industrials Index and compares their relative rotation to $INDU. From the first observation of this chart, a few tails/stocks catch the eye. First, there is BA in the top-right, leading, quadrant still powering further on both axes. Also inside or just entering the leading quadrant are NKE and JPM. Both seem to have a strong RRG-Heading but last week's price action does not look very supportive. I prefer a wait and see approach in such cases. Inside the Weakening quadrant Read More 

RRG Charts

SPY returning to leading quadrant on Relative Rotation Graph!

by Julius de Kempenaer

The above Relative Rotation Graph holds some ETFs representing various asset classes and compares the against VBINX, a balanced index fund that holds 60% equities and 40% bonds. The most striking observation is the fact that there is only one asset class on the right-hand side of the plot AND it is returning into the leading quadrant after rotating through weakening Despite all the talk about an over stretched market, a bull market on its last legs, etc. etc. the winner is .. <drum roll> SPY!   Read More 

RRG Charts

What's going on in Materials? (XLB)

by Julius de Kempenaer

The Relative Rotation Graph above holds the constituents of the Materials sector (XLB). The picture shows a fairly evenly distributed pattern with no real stocks standing out, maybe with the exception of MOS as it has the longest tail of all stocks on the graph while being at the lowest JdK RS-Ratio reading. In my sector analysis in the previous blog, Materials and Financials were the only two sectors inside the improving quadrant. In that article, I focussed on XLF because of its long tail. In this post, I want to take a better look Read More 

RRG Charts

Strong (relative) momentum based rotations among S&P 500 sectors, powerful tail for XLF

by Julius de Kempenaer

The almost vertical tails on the above Relative Rotation Graph for US sectors indicates a very clear (relative) momentum rotation, sending some sectors from North to South and vice versa. The two most obvious tails on the RRG are for XLE, far away on the left while sharply hooking upward, and XLF which has the longest tail in the universe at the moment, indicating that a strong (momentum) move/rotation is underway. Summary Vertical tails on RRG indicate strong (relative) momentum based moves XLK and XLE wide Read More 

RRG Charts

AAPL rotating opposite to BA on Relative Rotation Graph for $INDU

by Julius de Kempenaer

Watching the 30 members of the Dow Jones Industrials index on a Relative Rotation Graph always provides a great insight into what's going on under the hood of that universe. The first quick takes from the graph above are a fairly evenly spread universe with no big outliers and AAPL heading into the weakening quadrant while still at the second highest JdK RS-Ratio reading. Also on the right-hand side of the RRG, we find BA moving opposite of AAPL into the leading quadrant from weakening, these are usually strong relative moves. Inside the leading quadrant Read More 

RRG Charts

Commodities completely detached from other asset classes and equities picking up over bonds again

by Julius de Kempenaer

This Relative Rotation Graph for Asset Classes shows Commodities (DJP) far away in the bottom-left corner of the chart, completely detached from the others. At, by far, the lowest readings on the JdK RS-Ratio axis, DJP moved higher on the JdK RS-Momentum axis for a few weeks but recently turned left again, diving even deeper into the lagging quadrant. The Asset Class Rotation remains characterized by still NO asset classes inside the leading quadrant at all and only one, SPY (Equities), at the right-hand side of the graph. This makes a very good visualization for Read More 

RRG Charts

Are you looking at Industrial (XLI) stocks? ..Maybe you should.

by Julius de Kempenaer

This Relative Rotation Graph holds the top 50 (based on market cap) members of the S&P 500 Industrials sector index (XLI). This sector accounts for just over 10% of the S&P 500 market cap and is the fifth largest sector in this index. At the moment it does not seem to get the attention it might be deserving. In the chart above a few stocks immediately catch the attention. Very clearly in the lagging quadrant, we see GWW shooting further down into negative territory on a 225 degree RRG-Heading. Just behind it are PCAR and FAST at similar Read More 

RRG Charts

Will Technology (XLK) continue to lead the market higher?

by Julius de Kempenaer

The Relative Rotation Graph for US sectors shows four sectors with rotational patterns that catch the eye and deserve a further investigation. Inside the lagging quadrant, these are Energy (XLE) and Financials (XLF) and inside the leading quadrant, I am looking at Technology (XLK) and Consumer Discretionary (XLY). The balance of power on the RRG above is shifted to the leading quadrant. Five of the ten sector-ETFs on the RRG are positioned inside the leading quadrant (XLP, XLU, XLV, XLY, and XLK) with one inside the improving quadrant (XLRE). No sectors are Read More 

RRG Charts

Tech stocks inside $INDU looking good on RRG but avoid IBM and financials.

by Julius de Kempenaer

The Relative Rotation Graph for the 30 DJ Industrials (INDU) stocks once again presents us with some interesting insights. From the picture above we can read that AAPL is still the strongest stock in this universe with the highest JdK RS-Ratio reading and still inside the leading quadrant. Inside the leading quadrant, but more towards the center of the chart, we find a cluster of stocks that deserve a closer look as they may hold good upward (relative) potential. Within the top-left, improving, quadrant KO and INTC are on track towards leading at strong RRG Read More 

RRG Charts

No asset class in leading quadrant on RRG but SPY still strongest!

by Julius de Kempenaer

The Relative Rotation Graph for asset classes shows that not a single category is inside the leading quadrant at the moment and only one asset class, equities (SPY), is on the right-hand side of the plot. The quick take from this reading is that only SPY, asset class equities, is in a relative uptrend against VBINX but losing momentum, hence positioned inside the weakening quadrant. The good news is that the distance from its current position to the 100-level on the Jdk RS-Ratio axis is still big enough to possible turn back up into the leading quadrant without crossing over into Read More 

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