I got triggered to watch the chart printed above when I was scrolling through the pre-defined RRG groups. This is a routine I go through on a regular basis; just flip through all pre-defined RRGs and see if I note any strange or particularly strong or weak rotations. Literally right... READ MORE
On this episode of Sector Spotlight, I spends the full show in line with StockCharts TV's theme of the week "Charting the Second Half," examining what may be in store for the markets in the next part of 2020. I look at the rotation on the... READ MORE
On the daily Relative Rotation Graph for US sectors, the Consumer Discretionary sector rotated back into the leading quadrant last week, coming up from weakening. Generally, this is a positive/strong rotation as it reflects the second (or third, etc.) leg within a relative uptrend that is already underway. Looking... READ MORE
There is no doubt that the technology sector is still the strongest segment in the US stock market, but, in the near term, it is losing some of its relative momentum, as you can see on the daily Relative Rotation Graph for US sectors. One of the stocks in that... READ MORE
The first half of 2020 is "done and dusted." On this episode of Sector Spotlight, I start with a quick look back at the performance and rotations for asset classes and Sectors last week. Then, I take a closer look into the long-term trends using monthly charts in... READ MORE
I hope all of you had a great (long) 4th of July weekend. At the end of the short trading week, the Materials sector turned into a 0-90 degree heading on the Relative Rotation Graph as it crossed over into the improving quadrant from lagging at the same time. This... READ MORE
One of the ratios that a lot of market watchers and commentators look at is the relationship between Consumer Staples and Consumer Discretionary stocks. The assumption or rationale behind watching this pair is that Consumer Discretionary stocks usually do well in a rising market (SPY), while Consumer Staples stocks tend... READ MORE
On the weekly chart of Twitter (TWTR), a clear downward trend is visible. The last three peaks are lining up nicely and connecting a downward-sloping resistance line. Parallel to that downward sloping resistance line, there is an also downward-sloping support line that connects the last three lower lows. This channel... READ MORE
On this episode of Sector Spotlight, I check the seasonality for the month of July, but no clear over- or underperforming sectors are visible. The rotation of international stock markets is sending a clearer message; the US is losing momentum vs the rest of the world, especially Japan. Following some... READ MORE
Last week's sector rotation has pushed the Health Care sector into the improving quadrant at a positive RRG-Heading. This makes the sector stand out in a positive way on the DAILY Relative Rotation Graph for US sectors. The only two other sectors that are rotating from left to... READ MORE
One of the scans that I run on a daily basis is my scan for "Turtle Soup" Buy signals. Actually, I have two versions of that scan - one that runs at last day's close and one that runs on last intraday update. For the scan... READ MORE
On this episode of Sector Spotlight, I perform a quick overview of asset class and sector rotation, then focus in on plotting breadth data on Relative Rotation Graphs. After the break, I answer two questions from the RRG mailbag. This video was originally broadcast on June 23rd, 2020. Click anywhere... READ MORE
This question was forwarded to me by Dave Keller after he received it in the mailbag for his show The Final Bar. "The RRGs attached all make sense except for XLE. It was down nearly 9% the last two days, but the RRG has it moving up from weakening.... READ MORE
Technical analysts use a lot of breadth data in their work, which is understandable as it can give us a lot of useful information about how a market as a whole, usually a broad index level, behaves. Plus, it can help us to find developments "under the hood"... READ MORE
Relative Rotation Graphs are not just good for showing you the relative rotation based on price, but can also help you to see the relative development (rotation) of breadth on a sector level. There are many measures for breadth available in the StockCharts.com database, including several breadth indexes that... READ MORE
On this episode of Sector Spotlight, I work my way through the Investment pyramid, introducing a new universe for commodity sub-indexes. In particular, I highlight the steepening of the yield curve, which could be a threat for the S&P. This video was originally broadcast on June 16th, 2020.... READ MORE
In my weekly Sector Spotlight show on StockCharts TV, I present a segment on pair-trading ideas from time to time. This initially started out as 1-1 pair trades ideas, later changing to a basket of long ideas vs. a basket of short ideas. In the episode that I recorded yesterday... READ MORE
Yesterday's (6/11/2020) big drop in the S&P did not cause any weird hooks or unexpected rotations on the Relative Rotation Graph. If we start off in the leading quadrant, we see that the tails for XLU, XLRE, XLF, XLI and XLB had already started... READ MORE
A lot of (very educated) people want us to believe that the market is a random walk. And you know... Maybe sometimes it is, but not always. This morning, I ran into the chart of Pfizer (PFE) again. I've been monitoring that chart since I wrote about it... READ MORE
On this episode of Sector Spotlight, after a quick overview of asset classes and sector rotation, I dive into the mailbag and answer three questions. One of them shows two quantitative studies involving expected returns after a tail turning into a 0-90 degree heading. This video was originally broadcast on... READ MORE
The title for this article is a quote from John Murphy's book Trading with Intermarket Analysis. And I couldn't help but think of it when I was watching the Relative Rotation Graph that shows the rotation for different segments of market capitalization. The most well-known RRG... READ MORE
The recovery of the Technology sector out of the March low has been in line with the S&P 500, only 1.5% better. With its strong (out)performance in the run up to the February peak and the less disastrous decline into March, XLK remained at the right... READ MORE
On this episode of Sector Spotlight, I take a look at the longer-term picture for asset Classes and sectors using monthly bar-charts, then show how sometimes a shift to a line chart may give you even more insight. After this, I move on to combining the current RRG rotations with... READ MORE
In this week's episode of Sector Spotlight (Tuesday 10.30-11.00am ET), I ran out of time to review outstanding pair-trades so I am writing them up here in this article. Monitoring (pair trade) ideas and how to properly communicate and track them remains an ongoing concern. Let... READ MORE
One of my alerts on StockCharts.com is based on the "Turtle Soup" Strategy, which was described by Larry Connors and Linda Raschke in their book Street Smarts in 1996!! I like this setup because it looks for entries around potential tops and bottoms, and is therefore a... READ MORE
On this episode of Sector Spotlight, I review the current rotations for asset classes and sectors. In addition, I explain how your investment horizon and timeframe is crucial in determining how you view the markets. This video was originally broadcast on May 26th, 2020. Click anywhere on the Sector Spotlight... READ MORE
Communication is key... The Communication Services started to come alive again after a dull period, at least in relative terms. Recently, I wrote about the sector here in a Don't Ignore This Chart article ("Is Everybody Calling and Texting or What?"). In addition, in the first... READ MORE
Some time ago, I started to play around with BETA as a metric to gauge risk appetite for sectors, then went from there to the general market. If you search for BETA in ChartSchool you will find this entry: Beta: A measure of a security's systematic or market... READ MORE
Communication Services seem to be in high demand, looking at the price chart for XLC. After the March crash - or was it "just a dip," with hindsight? - XLC rapidly bounced back with a vengeance. I have annotated the chart above with some horizontal support and resistance... READ MORE
On this episode of Sector Spotlight, I look at recent rotations in asset classes and sectors. Next, I present updated BETA values for sectors and compare cap-weighted vs equal-weight values. Finally, I then finish up the show with a pair trade review. This video was originally broadcast on May 19th,... READ MORE
Inside the Health Care sector, IDXX is one of the stocks that stands out in a positive way. Since mid-2019, IDXX has been bouncing against resistance around $290, but never managed to get to a clear break. The peak that was set in the week beginning 2/19 was the... READ MORE
Growth-Value is a pre-defined group on the RRG page, showing the relative rotation for the Dow Jones Growth Index vs. Dow Jones Value Index, using the Dow Jones US index as the benchmark. The last crossover for Value into the leading quadrant, and Growth into lagging, happened in November 2018.... READ MORE
On this episode of Sector Spotlight, I highlight the Technology sector and picks some Tops and Flops that are worth keeping an eye on using RRG. In the second part of the show, I answers a question from the Mailbag and suggest a new pair trade idea. This video was... READ MORE
This article appeared in the Chartwatchers newsletter last weekend (5/9) but as it touches on one of the core interpretation basics for Relative Rotation Graphs I wanted to have it in the RRG-blog as well. So in case you missed this weekend's newsletter, here is your second... READ MORE
Sometimes it is unclear how daily and weekly RRGs align with each other. Just to be clear, this is not the same as the difference between daily and weekly RRGs. With regard to that difference, there is a ChartSchool article that explains it in detail. What we are talking about... READ MORE
The above chart shows the daily and weekly tails for PFE overlaid on the same Relative Rotation Graph. And before you ask... NO, you cannot do this on the site. I did need to be a little bit creative with cutting-copying-pasting-etc. But I thought it was worth it. A bit... READ MORE
On this episode of Sector Spotlight, I walk through asset classes and US sectors using RRG in combination with monthly charts. Afterwards, I answer a question from the mailbag regarding the alignment of weekly and daily RRGs. In the seasonality segment, I highlight two sectors that are showing a strong... READ MORE
At the end of the month, or the beginning of a new month, I like to look at the expected strength for sectors based on seasonality. The chart above visualizes the seasonal strength for US sectors in one 3D image. The numbers in the table represent the % of occurrences for... READ MORE
The Energy sector keeps coming back on my radar as a sector that's potentially turning around. The sector has been in a relative downtrend for ages already and, from a long-term perspective, things still do not look very good. However, things never look good just before or in... READ MORE
On this episode of Sector Spotlight, I begin with a quick overview of what happened with asset classes and sectors in the markets last week. Afterwards, I take a look at the current state of sector rotation and finish up with an in-depth look at the relative rotation for all... READ MORE