One of the (if not THE) most promising tails on the Relative Rotation Graph for US sectors is on XLY, the Consumer Discretionary sector. Over the last five weeks, the tail on XLY shows an almost straight line into the leading quadrant while gaining on both axes. Things do not... READ MORE
On this edition of StockCharts TV's Sector Spotlight, being the first Tuesday of the month, I take on the completed monthly charts for October. I kicks off the show with a look back at last week's rotations on the Relative Rotation Graphs for Asset Classes and... READ MORE
Offensive vs Defensive sector rotation always is a theme in stock markets. Sometimes a little more on the forefront, sometimes a bit more on the background. Sometimes we can read very clear messages from certain rotations, sometimes a little less. At the moment, I believe, the offensive/defensive rotation is... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I take a quick look at the current state of Asset Class rotation through the RRG lens. After that, I move on to Sectors. After a quick assessment of last week's rotation, I bring in BETA again to... READ MORE
The two crucial elements of a Relative Rotation Graph (RRG) are the "universe" and the "benchmark". The Benchmark The benchmark for a Relative Rotation Graph is the common denominator for all securities that are present in the universe. Theoretically, the benchmark can be any index or... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I dive into the current state of sector rotation and highlight the relationship between the Consumer Discretionary and Consumer Staples sectors, as Discretionary is trying to pull away after a period of indecisiveness. The XLP:XLY ratio is breaking out... READ MORE
The sector rotations on the Relative Rotation Graph are still confusing. The Consumer Staples and Discretionary sectors are currently moving in the same direction where they normally move in opposite directions. Based on rising rates, one would expect both Banks/Financials and Real-Estate to benefit, but where XLF is definitely... READ MORE
For the 100th edition of StockCharts TV's Sector Spotlight, I invite market veteran Tom Dorsey to join me for a chat and celebrate these past 100 episodes! We touch on how and when we had our ah-ha moments, or "epiphanies" as Tom refers to it, where... READ MORE
On the Relative Rotation Graph for sectors, the tail on XLF is showing one of the most promising rotations, being inside the improving sector and traveling at a strong RRG-Heading towards leading. Relative and price-technical arguments aside, I think there are two charts that support a further rotation towards and... READ MORE
In a recent conversation, somebody mentioned "New York Fang" to me. I was under the impression he was referring to the FANG stocks. Only later did I understand that he was talking about an ETF and an associated index which is a bit broader than "just"... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I start the month by evaluating the monthly charts for asset classes and sectors. Despite the weak ending of the month in September, three sectors managed to squeeze out a new all-time-high. However, none of them were able to hold... READ MORE
The Bond Market Holds all the keys. And one of the key charts here is TLT. After setting a big double top in 2020 and completing it at the end of the year, the start of 2021 was characterized by an acceleration lower, pushing yields higher. Support was found around... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I review the current rotations for Asset Classes and Sectors. As it is the last Tuesday of the month, I bring in the seasonality segment to find out if there are any meaningful seasonal patterns coinciding with current rotations on... READ MORE
After the last update of the RRG Baskets we were left with 3 shorts and 3 longs: LONG : EXR, WM, CRM SHORT: XLY, SWKS, PSX LONG Looking at the recent performance for the members of the long basket we see CRM and WM holding up well vs the S&... READ MORE
On the Relative Rotation Graph for sectors, the Financials sector, XLF, is positioned inside the lagging quadrant and heading upwards to the improving quadrant. The sector is gaining on the vertical JdK RS-Momentum axis, but not so much (yet) on the horizontal Jdk RS-Ratio axis. On the price chart, XLF... READ MORE
Be Careful what you wish for.... the market finally seems to be starting to give in. As Europe opens the week lower and the US follows, I assess the rotations at asset class and sector level on this edition of StockCharts TV's Sector Spotlight. With the market now... READ MORE
I had planned to look at some lesser-known Relative Rotation Graphs in this week's episode of Sector Spotlight, but I used too much time on asset class and sector rotations to make that happen. So I am going to publish them here and give a brief description and... READ MORE
On this edition of StockCharts TV's Sector Spotlight, asset class level stocks are still beating bonds, but the pace is slowing down. The big H&S pattern in EUR/USD, which suggested strength for the USD, is still there but lost a bit of its appetite. Sector... READ MORE
With the SPY/SPX chart sending curveballs, sector rotation on Relative Rotation Graphs is sending conflicting signals. With breadth continuing to deteriorate as the S&P continues to creep higher, getting a handle on the markets is not getting any easier. So instead of focusing on the S&... READ MORE
Over the past few weeks, I have been pointing out conflicting rotations for sectors on Relative Rotation Graphs, the negative divergence between RSI and SPY and a few more arguments that signal caution.With regard to the S&P, that has not paid off.... yet. The US stock market,... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I talk you through the recent rotations in Asset Classes and Sectors, addressing the counter-trend move in the USD index -- which is close to negating the double bottom in the index and the H&S pattern in the... READ MORE
The last update on the RRG baskets goes back to 20 July. In that post, I did a big clean up and left the basket with the following positions: LONG: EXR, WM, CRM SHORT: ETR, XLY, SWKS LONG Basket The RRG for the three stocks on the long side shows... READ MORE
In this week's episode of Sector Spotlight, I focused on the long-term trends using monthly charts. For several months already, most sectors have been in an uptrend on these charts; only the energy sector and the utilities sector did not qualify as such (higher highs and higher lows... READ MORE
Did you see the break in Utilities? On this edition of StockCharts TV's Sector Spotlight, it's all about the monthly charts. As the last Tuesday of this month (August) also happened to be the last day of the month, I decided to push things forward a... READ MORE
This month marks exactly seven years ago that I started contributing to the StockCharts website, after Relative Rotation Graphs were added to the graphical toolbox in July 2014. As the number of eyeballs on RRGs, the blog and the weekly episodes of Sector Spotlight has grown substantially over these years,... READ MORE
The Relative Rotation Graph above shows the rotation for the G10 currencies against the USD, which is the base (=benchmark) for this universe. Or, better, it shows nine of the G10 currencies against the USD. The general direction for this universe is pretty clear. The majority is moving inside the... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I take a chance and bring in seasonality for next month. Usually, we do that on the last Tuesday of the month, but this time the last Tuesday (next week) falls exactly on the last day of August and we... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I look at last week's rotations for asset classes and sectors and conclude that the current sector rotation is throwing curve balls at investors making it difficult to come up with a very clear and well-defined trend or... READ MORE
Relative Rotation Graphs are a great tool to use for a top-down approach. Lots of people look at sectors and trade the sector ETFs. The State Street sector SPDRs range (XLK, XLY, XLP, etc.) is probably the most popular family of ETFs for that purpose. The RRG above shows the... READ MORE
For a few weeks already I am monitoring the rotation between large-, mid-, and small-cap segments. On the various Relative Rotation Graphs, the deterioration for Small-Caps and, to a lesser degree, Mid-Caps vs Large-Caps is clearly visible. Over the last 13 weeks, Large Caps have pushed into the leading quadrant... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I spend the entire show on talking you through the current rotations for Asset Classes and Sectors and how they interact with longer term trends and price charts. Caution remains for the S&P 500, while the Healthcare sector... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I go over the completed monthly charts for July, highlighting the major trends and pointing out the areas of support and resistance to watch. Before the break, I give a quick overview of last week's rotations for sectors... READ MORE
After slowly rolling over while inside the improving quadrant, the tail on XLV (Health Care) picked up again at the start of this week and is now moving into the leading quadrant. This move follows the recent rotation on the daily RRG, which started out in the leading quadrant, rolled... READ MORE
The Relative Rotation Graph showing the rotations for Large-, Mid- and Small-Cap indexes is sending a very clear message: Avoid Small-Caps. (And also Mid-Caps.) The large-cap segment pushes further into the leading quadrant, while small-caps are on a very long tail moving deeper into negative territory. It looked as if... READ MORE
The Relative Rotation Graph above shows the rotation for the members of the Semiconductor group against the DJ US Semiconductor index. Clearly, NVDA is the main component of this group, and it has been leading the group higher recently. Over the last few weeks, however, NVDA has started to lose... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I highlight interesting seasonal patterns for various sectors and explore if they are aligning with the current rotations on the Relative Rotation Graph. It looks like August has some interesting seasonal anomalies that are worth exploring. 7 out of the... READ MORE
At the start of this week, the technology sector is rotating into the leading quadrant on the weekly RRG. Clearly, the endpoint of the tail is not fixed until Friday's close. Still, the improvement is visible and follows the improvement that was already visible for a few weeks... READ MORE
First of all, I'm sorry I had to cancel today's episode of Sector Spotlight. I've been battling a nasty cough/cold and a sore throat with not much voice left for a week now, and things did not improve enough to do a decent... READ MORE
The Relative Rotation Graph above shows the rotation for major stock market indexes against the Dow Jones Global Index. First of all, this is a so-called "open universe" which means that not all constituents of the benchmark are plotted on the graph. As a result, the universe is... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I seize the opportunity to answer questions from the mailbag. Why is this stock showing a negative performance while it is inside the leading quadrant? Can you give some guidelines on where to buy or sell? These are the major... READ MORE