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LRCX is Breaking To New Highs While Relative Strength is Picking Up
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
On the Relative Rotation Graph for technology stocks, LRCX stands out, with its relatively long tail and its push into the leading quadrant at a strong RRG-Heading. Such a rotation is more than enough reason to open up a regular chart for further investigation.
The chart above shows LRCX on...
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Using Scan and RRG for Bottom Fishing
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
One of the most frequently asked questions I receive, with regard to Relative Rotation Graphs on StockCharts.com, is if and how the scan engine can be used to scan for certain events on an RRG.
Well, the answer is you can NOT - not yet, anyway. It's...
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Is This Stock Ready For a Turnaround - or Just a Quick Bounce?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
The Relative Rotation Graph (RRG) above is the result of a scan that I am running from time to time. Before you ask... ;) in an upcoming RRG Charts blog, I will explain how I got to this selection of stocks, including the scan-code.
For now, let's concentrate on...
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Growth vs. Value Rotation is Sending a Very Clear Message on RRG
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
One of the Relative Rotation Graphs that I like to keep an eye on in order to get a handle on the general market condition (for stocks) is the chart above, which shows the rotation of Value versus Growth stocks using the Dow Jones US Index as the benchmark. The...
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A (pair) Trade Idea in Consumer Discretionary
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Looking at the daily Relative Rotation Graph for US sectors, we can see that Consumer Discretionary is inside the improving quadrant and about to cross over into leading at a strong RRG-Heading. For the near-term, this makes XLY a sector to keep an eye on.
In order to look for...
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What do you want from me?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Rumour has it that a new show will be launching soon on StockCharts TV. The focus for this weekly 30-minute adventure will be on sectors, with yours truly as the host/presenter for this program (so you can count on a healthy dose of RRG-related content).
Don't worry,...
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Here Is a Leading Stock In The Semiconductor Group
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Yesterday, I wrote about the Technology sector in my RRG Charts blog, where I discussed how the semiconductor stocks as a group showed relative strength against XLK. For this DITC article, I want to work off that subset of stocks in the technology space.
The Relative Rotation Graph above shows...
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Strong Rotation for Technology Sector With a Positive RRG-Heading on Semiconductors
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
On the weekly Relative Rotation Graph, the Technology sector is currently inside the weakening quadrant, but is moving almost vertically up towards the leading quadrant. That is to say, it's moving back to the leading quadrant, as it already completed a strong rotation through that leading quadrant from...
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Relative Rotation Graphs Can Show You So Much More Than Just Sector Rotation
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Relative Rotation Graphs, or "RRGs", were born while I was working as a sell-side analyst for an investment bank in Amsterdam, doing research and making calls on stocks and sectors. The clientele of the bank were all institutional investors, ranging from pension funds and endowments to hedge funds....
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Financials Are Breaking (more) Support While Rotating Into the Lagging Quadrant On The RRG
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
On the Relative Rotation Graph for US sectors, the tail on XLF, the Financials sector, caught my eye this morning. After a short stint through the leading quadrant, XLF had a sharp turn lower and entered the weakening quadrant, in which it spent only three days before rotating into lagging....
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GE is Doing It Again!
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
A good way for you to check what has been driving a particular market is to go to the "Market Movers" widget on your dashboard and select the universe that you are interested in.
To the right, I have printed the table showing the top 10 most active...
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This is My Trendline, Which One is Yours?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Never a dull moment when it comes to the markets. Just when you thought you had it all figured out, Mr. Market throws us another curve-ball that we all have to deal with.
The last few days have been pretty hectic, given a 200-point drop in the S&P...
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Using SCTRs to Fill Your Relative Rotation Graph
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
In my latest "Don't Ignore This Chart" article, I used a Relative Rotation Graph holding 20 stocks as a starting point to find an interesting-looking rotation and a possible trading opportunity for BHGE. The question: how was I able to select those 20 stocks to include...
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BHGE Rapidly Improving and Ready to Jump
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Here's a Relative Rotation Graph filled with stocks that I got off my StockCharts.com dashboard this morning:
Your Dashboard is a great way to get an overview of what's going on in the market and organize your workflow on the site. If you are interested...
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The Break to New Highs in the S&P 500 is Now Getting Support From Rotation To Offensive Sectors
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
In the run-up to its resistance level (around 2950), along with first two weeks after breaking that barrier while pushing to new highs, more defensive sectors like Utilities and Consumer Staples were leading the market higher.
The situation is changing now, adding more reliability to this important breakout.
RRG Positions...
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Strong Rotation For Technology Amid Shift To More Offensive Sectors
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
When I opened up the Relative Rotation Graph for US sectors (weekly version), the position and the current rotation for the Technology sector caught my attention.
If you are a regular reader of articles you will know that my default time frame is weekly. On that weekly RRG, XLK is...
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How To Get From a Table of Market Movers To a Trading Idea Based on RRG
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
StockCharts.com has an incredible wealth of technical tools available both for free users as well as subscribers. That said, though, users who subscribe will have a greater amount of tools and functionality available to them.
Very recently, there was a panel discussion on MarketWatchers LIVE with Tom, Greg and...
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Forces Are Shifting in The Battle Between INTC and MSFT
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
When you open up StockCharts.com and go to Your Dashboard, one thing you'll find is a section called "Market Movers", located in the top-right corner of your screen.
I currently have this section of the page set up so that it shows the top 10...
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A Strong Rotation on RRG and a Break to New Highs Make For a Killer Combination
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
At present, the Technology sector is rotating through the weakening quadrant on the Relative Rotation Graph. Following a strong move in the first months of this year, relative strength for XLK started to level off and has remained more or less flat since April. We'll have to wait...
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Team USA Wins the Soccer Final, But Three International Markets Beat the S&P
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Last night (Sunday 7/7) the Dutch women's soccer team played the World Cup final against Team USA. I am not a huge soccer fan but, as a Dutchie, you have to catch at least part of that event! It did not work out for us, so congrats...
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The S&P Just Broke Out of a Two-Year Consolidation, But There are Still Some Pockets of Concern
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
A short, but strong, trading session just before the Fourth of July holiday pushed the S&P, along with the Nasdaq 100 and the DJ Industrials indexes, to new highs.
Breaks to new highs are pretty strong signs and should not be ignored. At the end of the day,...
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Brexit is SOOO 1776!
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Happy Fourth of July!
On this public holiday - for the US, anyway; not so much for me ;) - I looked up a bit more about the history of Independence Day and, while doing so, it occurred to me that even back then, the British were involved in a separation....
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An Investment Process Is All About Piecing Things Together To Get Other Or Better Insights.
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
In my last DITC contribution, I wrote about the Real Estate sector, which is crossing over into the leading quadrant at the same time as the seasonality chart for that sector indicates that, over the last 20 years, XLRE closed the month of July higher 71% of the time, with...
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This Sector Just Returned to the Leading RRG-Quadrant AND Shows an Outperformance 71% of the Time in July
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
I do not believe that there is just one single tool, strategy, method, etc. that fits all our needs as investors or traders. For me, the power of research and analysis lies in combining information from various sources and subsequently putting all that together into a market-view, strategy, system, etc....
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Will China Be Able To Complete Its Current Rotation Inside Positive Territory And Start A New Period Of Outperformance??
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
On the above Relative Rotation Graph, which shows the rotation for international stock indexes against the Dow Jones World index, we really ought to pay attention to the long tail inside the weakening quadrant for the Chinese market.
This rotation follows a strong performance of the Chinese market during the...
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The Dollar Beats All Currencies In The G10 Except For The Japanese Yen
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Relative Rotation Graphs can be used to visualize the relative movement of much more than just stocks and sectors.
In the example below, the RRGshows the relative rotation for the G10 currency universe usingUSD as the base currency.In this case, you will see nine currencies, all expressed in USD...
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(Technical) Market Analysis And Portfolio Construction Are Two Completely Different Animals In The Same Zoo.
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
First of all, let me say that I really appreciate any feedback and comments I get on any of my articles, either via DISQUS below each blog post, via email or in SCAN. I do read all of them and I try to answer most of them, I think my...
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Real Estate Is Getting Back In Shape!
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
The Relative Rotation Graph for US sectors shows the sector Real Estate (XLRE) inside the weakening quadrant, but that sector moving upward (almost vertically) on the JdK RS-Momentum scale. This type of rotation usually indicates that a second (or third, etc.) leg of a relative uptrend is about to get...
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Can I Have A Coke (KO) With My Big Mac (MCD) Please?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
While browsing through the stocks in the DJ Industrials index, my attention was grabbed by the tails on KO and MCD, both in a positive way.
KO is making a wide rotation through lagging into improving and is now very close to crossing over into the leading quadrant. MCD, meanwhile,...
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Value Is Taking Over From Growth And Shows Positive Rotation On RRG
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
One of the Relative Rotation Graphs that I like to follow, as a way of keeping a handle on the bigger picture, is the one that shows the rotation of growth- versus value stocks.
This RRG is predefined in the dropdown box under the header "US MARKETS" and...
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Staples and Financials Head Towards the Leading Quadrant While Energy Rolls Back into Lagging
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
The chart above shows the relative rotation for US sectors against the benchmark S&P 500. Over the last five weeks, the tails for Consumer Staples (XLP) and Financials (XLF) started to move in a similar fashion. Both are heading towards the leading quadrant.
The Energy sector, on the...
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Did We Just Complete a H&S Top In $SPX?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
It seems I did not have to look very far to find today's DITC entry...
The S&P 500 ($SPX) provides enough ammunition to get excited - or maybe worried is a better word - and not ignore the price action that is unfolding at the moment....
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Spotting Strength And Weakness Inside The Financial Sector (XLF)
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Looking at the Relative Rotation Graph showing the sectors of the S&P 500, we can see that the tail on the Financials sector stands out, having seen a big increase since last Friday.
Over the last 12-13 weeks, Financials rotated from the lagging into weakening quadrant, then moved...
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Communication Services Shows a Strong Rotation, But GOOG Is Not Participating
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Relative Rotation Graphs can help to identify threats and opportunities within groups of securities. In this article, I will be looking at the position and rotation of the Communication Services Sector against the S&P 500 and other sectors, followed by a closer look at the rotation of various...
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Is China About To Pick Up The Pace Again?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Yesterday, I wrote about the relationship of US stocks against other international stock markets in my regular RRG Charts article.
The Relative Rotation Graph that I use for these analyses is one of the pre-defined groups and is shown above.
While working on that article, I noted the long tail...
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What Does It Mean When The US Starts Outperforming Other International Stock Markets?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Stock markets around the world are giving mixed signals. Returns over the last 5 weeks have varied from +4% in Australia to -10% in China. The Relative Rotation Graph above shows the relative trends that are currently in play among the various international stock market indexes.
For a pure, and...
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Will this break in IEF be able to hold up?
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Browsing some Relative Rotation Graphs, the relationship between Stocks and Bonds once again drew my attention.
When I shifted to their respective charts, I decided that the current price action of IEF, as shown in the graph above, deserves our (or, at least, my) attention.
This ETF, which tracks the...
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Gold Pops As The Stock Market Drops
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
After a struggle with resistance around its previous high of 2940, the S&P 500 index failed to break and started to come down off of its highs.
A lot of political and fundamental issues and news are influencing the behavior of market participants at the moment; this uncertainty...
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Building A Case For SYY In The Staples Sector Using Three Relative Rotation Graphs
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Relative Rotation Graphs can be a great asset in getting a high-level overview of what is going on in the markets and keeping an eye on the big picture. Beyond that, though, they can also help you to drill down to find new individual investment possibilities and trading ideas.
For...
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Strong Rotation For AXP on RRG vs DJ Industrials
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com
Watching the Relative Rotation Graph for the DJ-Industrials universe, you can see a few stocks, like AAPL, BA and WBA, that stand out immediately. Despite the current setback in the market, there are still some stocks that are worth approaching from a buyer's perspective.
Inside The Leading Quadrant...
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