On this episode of Sector Spotlight, I discuss the subtle differences between cap-weighted and equal weight sector ETFs on RRG. I also take some time to show how you can plot pairs/ratios on a Relative Rotation Graph. This video was originally recorded on March 24th, 2020. Please note the... READ MORE
Everybody's looking at the stock market these days, but, in other areas of the market, big shifts seem to be underway as well. One of the areas that I like to keep an eye on is currencies, and Relative Rotation Graphs can help you keep an eye on... READ MORE
The image above shows two Relative Rotation Graphs for US sectors, side by side. The one on the left is the RRG (as I usually use it in my blogs and the Sector Spotlight show) holding 11 US sector ETFs, the SPDR ETFs offered by State Street. The one on... READ MORE
On this episode of Sector Spotlight, I try to see through the mayhem and get an angle on US sector rotations on weekly Relative Rotation Graphs. In addition, I go a bit more in-depth answering some questions from the Mailbag. This video was originally recorded on March 17th, 2020. Please... READ MORE
The US sector universe is split pretty much evenly around the benchmark SPY. That is normal. It is also split pretty distinctively in sectors that are inside the leading quadrant and/or traveling at a positive RRG-Heading, which means that they are in a relative uptrend vs. the market. Under... READ MORE
The mayhem in the markets over the past three weeks has clearly caused a rotation out of the more offensive sectors towards defensive ones. The sectors with the clearest rotations are mentioned on the chart above. One sector that I would have expected inside the lagging quadrant, or at least... READ MORE
The Relative Rotation Graph for the DJ Industrial constituents shows a clear split between stocks in the leading quadrant vs. stocks inside the lagging quadrant, with only one inside weakening (MSFT) and one inside improving (CSCO). A few stocks inside the leading quadrant are starting to roll over and a... READ MORE
RRG can help you put things into an international perspective. In this edition of StockCharts TV'sSector Spotlight, I look at international stock markets through the RRG lens and comes up with two new pair trade ideas. This video was originally recorded on March 10th, 2020. Please note the... READ MORE
What a week .... With stock markets flying all over the place, I always find it an enlightening exercise to take a step back and put things into a broader perspective. This can be done in multiple ways, including taking a longer-term approach, looking at different segments of the market via... READ MORE
When the market tanks, like it did from 24 February onwards, there is not much you can do anymore. You basically have to sit and wait and see which level(s) support or resistance are respected by the market. And the problem is, you will not know until a few... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I look at the monthly charts for asset classes and sectors in combination with their rotations on RRG. In addition, I also answer a question from the mailbag on using leveraged ETFs on Relative Rotation Graphs This video was originally recorded... READ MORE
What a week... Where do I start??? Let's just say that this was not a boring week for the markets...... at all! When markets go crazy and swings get out of control, I have learned to step back and look at the bigger picture - and keep it... READ MORE
Days with wild swings, as we are seeing at the moment, are either heaven or hell, depending on what kind of trader or investor you are. Those looking for action will have a field day. But how do you easily find tradable securities? And how do you get a handle... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I analyze the impact of current market movements on sector- and asset-class rotations. After the break, I answer a question from the mailbag and introduce a new pair trade idea. This video was originally recorded on February 25th, 2020. Click anywhere... READ MORE
Since November, I've had a recurring segment in each episode of Sector Spotlight on Pair Trading Ideas. Every show, I try to come up with a pair trade idea using Relative Rotation Graphs on various universes and on various timeframes. These ideas were, and still are, practical examples... READ MORE
People who follow the RRG Charts blog and my other articles in the ChartWatchers newsletter, as well as this Don't Ignore This Chart blog, will know that I like a top-down, structured approach to markets. The starting point for this approach is always the Asset Allocation universe, which... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I cover a few questions that came in via the mailbag and used one of the questions to (re-)structure my asset allocation approach and visualize the investment pyramid. This video was originally recorded on February 18th, 2020. Click anywhere on... READ MORE
Two weeks ago, I wrote a ChartWatchers article titled "RRG Suggests Aggressive Trade Setup for XLY vs. XLV." In this article, I want to show you how you can take that idea one step further and, at the same time, answer a question on how you can easily... READ MORE
CSCO peaked in the first half of 2019. The first time at $ 56.30 in April and then again in July at $ 57.40. A typical failure to convincingly break above a previous high. From July onward CSCO moved lower to a low around $ 43 at the start of December.... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I discuss the current rotations for US sectors, then explain how to add a second(ary) benchmark to the RRG chart as a way of getting a more detailed analysis. This video was originally recorded on February 11th, 2020. Click anywhere... READ MORE
It's a Puzzle Regular readers of the RRG blog and my contributions to DITC and the ChartWatchers newsletter, as well as watchers of Sector Spotlight, will probably be aware of my recent research exercises to combine RRG with seasonality. The reason for doing that lies in my belief... READ MORE
While browsing through some RRGs, my eye fell on a rare rotation in the Financial sector. AIG, on the daily RRG, was coming from leading through weakening and just hit the lagging quadrant a few days ago. Then, just yesterday, the stock "hooked" back aggressively, taking it from... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I cover Asset Classes and Sectors using monthly charts, as usual given the start of the new month. After the break, I answer a question on the difference between a simple price ratio and the RRG-Lines. This video was originally recorded... READ MORE
Earlier today, I was preparing for my weekly Sector Spotlight show on StockCharts TV (airing every Tuesday at 10:30am ET), and, as today is the first Tuesday of the month, that meant looking at monthly charts for Asset Classes and US sectors. This routine gives me a good (forced)... READ MORE
The Relative Rotation Graph above shows the weekly rotation for US sectors against SPY (S&P 500). While the S&P 500 chart is deteriorating and seems to be going into a correction, there are two tails on the RRG that suggest an interesting trade setup. (I already... READ MORE
On the Relative Rotation Graph for US sectors (XLY), the Consumer Discretionary sector started to curl up and move higher while inside the lagging quadrant. After a weak performance against SPY for months, XLY started to improve on the JdK RS-Momentum scale a few weeks ago and, very recently, also... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I updated my spreadsheet for calculating the BETAs for all of the SPDR sectors. During the episode, I show users how to use this metric in combination with RRGs. This episode was originally recorded on January 28th, 2020. Sector Spotlight airs... READ MORE
In a recent article in the RRG Blog titled "Is XLC taking over from XLK?", I identified the Communication Services sector as one of the potential new leading sectors in coming weeks. Currently, on the Relative Rotation Graph for US sectors, XLC is inside the improving quadrant, but... READ MORE
In this week's episode of Sector Spotlight, I ran out of time to go over the pair trade idea that we usually have at the end of the show and I promised to write it up in an article. So here it is. This idea was generated from... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I analyze the current rotations for US sectors and answer two questions from the mailbag. For one of those questions, I discuss the use of RRGs in short-term trading. This video originally aired on January 21st, 2020. During the last few... READ MORE
Here's a quick update for a rotation that caught my attention this morning. Since the end of last year, XLF has started to give up on its leading role. JdK RS-Momentum started to decline and the tail began to roll over. Last week, XLF moved from the leading... READ MORE
In my last article for the RRG blog, I wrote about the process of how to get from an idea, whether based on RRG analysis or something else, to a position in your portfolio. That post was geared towards the observation that Growth stocks are outperforming Value stocks and focused... READ MORE
If you are using Fidelity Funds, a Relative Rotation Graph showing the movement of all these funds can help you find the ones that are offering potential (for outperformance). The image above shows such a Relative Rotation Graph, holding 39 Fidelity Select funds. Going over the funds on this chart,... READ MORE
In my last article for the Don't Ignore This Chart blog, which I write for on Thursdays, I wrote about the clear message that the rotation of Growth vs. Value is currently sending. As those are short articles meant to point to potentially interesting situations and usage of... READ MORE
Relative Rotation Graphs enable us to see beyond sectors or individual stock rotations; they can also be used to visualize differently-sorted market segments. The RRG above illustrates growth vs. value stocks, a measure that often is also used to gauge the direction for the general market. In general, growth will... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I take a look at new monthly charts and asset allocation. Afterwards, I build more on the Seasonality visualization and interpretation that I started during last month. This video originally aired on January 7th, 2020. Sector Spotlight airs weekly on Tuesdays... READ MORE
XLC, the Communication Services Sector, is sending some mixed signals. On the price chart, XLC convincingly cleared resistance at $51 in November, when it pushed above the horizontal boundary that ran over the highs (four in total) of 2018 and 2019. That level was tested one more time as support... READ MORE
Real Estate started to lose relative strength vs. VBINX in November, then crossed over into the lagging quadrant on the weekly Relative Rotation Graph in December. On the weekly RRG for asset classes, VNQ is still well inside the lagging quadrant and considered one of the weak(er) asset classes.... READ MORE
In this edition of StockCharts TV'sSector Spotlight, I discuss a way to plot multiple seasonality patterns on one graph and combine them with the tails on a Relative Rotation Graph. This video originally aired on December 31st, 2019. Sector Spotlight airs weekly on Tuesdays 10:30-11:00am ET.... READ MORE
The RRG showing the Relative Rotation for US sectors has the energy sector inside the improving quadrant. Make no mistake, based on the JdK RS-Ratio reading, this is still the weakest sector in the S&P 500 - but things seem to be changing. XLE crossed from weakening into... READ MORE