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
In the latest episode of my StockCharts TV series Sector Spotlight, I took an in-depth look at the relative rotation of asset classes vs. VBINX, the Vanguard Balanced Index fund, which represents a 60/40 stocks/bond portfolio. The image above shows the investment pyramid that I use to show... READ MORE
Recently I have been picking up some work that I had done in the past with regard to plotting (sector) breadth data on Relative Rotation Graphs. You can review the segment in this episode of Sector Spotlight and read more about possibilities with breadth on RRGs in this article "... READ MORE
In the 4/14/20 episode of my show Sector Spotlight, which airs every Tuesday at 10:30am ET on StockCharts TV, I talked about plotting breadth data on a Relative Rotation Graph. The link below starts at that segment. In this article, I will add another option to take... READ MORE
On this episode of Sector Spotlight, I perform an in-depth overview of asset class rotations, finding that RRG still suggests a cautious approach for stocks; meanwhile, (long) bonds are on the verge of breaking higher, sending yields to even lower levels. This video was originally broadcast on April 21st, 2020.... READ MORE
No matter what sort of general market regime we are in, there are always a few that go the other direction. From 2017 to 2019, when the S&P surged, GE went completely the other way and more than halved. At the moment, we have a market that is... READ MORE
Relative Rotation Graphs can show many different relationships. They do not necessarily have to come from regular price data-series like stocks or indexes. In my weekly show on Stockcharts TV, Sector Spotlight, which airs every Tuesday from 10.30-11.00 am ET I spent time on pair trades on a... READ MORE
On this episode of Sector Spotlight, I demonstrate how you can create UDIs to plot pairs, as well as how to use breadth data for sectors on RRG. In addition, I also showcase a new idea for a pair trade. This video was originally broadcast on April 14th, 2020. Please... READ MORE
Last week on Wednesday (4/8) I wrote an article in the RRG blog on how you can use ChartLists, in combination with Relative Rotation Graphs to monitor your mutual fund portfolio. The article was inspired by a question which I received in the mailbag of my weekly show Sector... READ MORE
$248.94... That was the high for GS, set on Jan 17/2020. Two months later, on Mar 19/2020, a low was reached at $130.85. The stock is almost halved... so now what? On the (weekly) RRG for US sectors, Financials is traveling well inside the lagging quadrant... READ MORE
Recently I received a message asking if Relative Rotation Graphs would be useful for tracking Mutual Funds. My answer: Of course they are! Pricing of Mutual Funds In essence, the prices of mutual funds are also the result of people buying and selling on financial (stock) markets. The difference between... READ MORE
On this episode of Sector Spotlight, I take a look at sector rotation on monthly charts (since it is the first Tuesday of the month). In addition, I answer a question whether RRG can be used to monitor mutual funds. This video was originally recorded on April 7th, 2020. Please... READ MORE
Tails that rotate from the leading quadrant into weakening and then back into leading always have my attention. The reason for that is that securities that rotate along such a path are already in a relative uptrend and the rotation from leading, through weakening, back into leading ,eams that another... READ MORE
The ratio between XLY:XLP, Consumer Staples vs. Consumer Discretionary, has traditionally been a pretty good gauge to get an idea about being in a risk-on or risk-off environment. The chart above shows the XLY:XLP ratio, with the S&P 500 plotted behind it. Around the big turns,... READ MORE
On this episode of Sector Spotlight, I take a closer look at what's happening in the various Asset Classes. Afterwards, I examine the Utilities sector, as it has a strong seasonality going into April which is now backed by a strong tail/rotation on the RRG. This video... READ MORE
Instead of simply looking at sectors, it also makes sense to keep an eye on segments of the stock market based on different criteria. The Size Factor One example is to group stocks based on Market Capitalization, i.e. Large-, Mid- and Small-Cap stocks. A Relative Rotation Graph of that... READ MORE
A lot of eye balls on the health care sector these days, and for good reasons. Traditionally, this has been one of the more defensive sectors, and it seems to be picking up that role at the moment. On the weekly RRG for US sectors, XLF hooked sharply upward, moving... READ MORE