Since printing its high on 1 May, the S&P 500 has struggled to keep up and make its final push through resistance. Over the last three to four days, the bulls have capitulated, putting a reinforcement of the 2940-2950 resistance zone into place. The rising wedge formation that... READ MORE
The Healthcare sector is not in its best shape. On the Relative Rotation Graph for US sectors, XLV is deep down inside the lagging quadrant against SPY, without any signs of improvement at the moment. However, if you feel that this situation will not last forever and are gutsy enough... READ MORE
The Relative Rotation Graph shows the five technology stocks inside the DJ Industrials index, all of which are at the right-hand side of the RRG. This is not surprising, considering the strong rotation of the sector as a whole against the S&P 500 index. Despite the strength of... READ MORE
A lot of eyeballs are watching the USD these days. Not surprisingly, as a lot (or most) people pay attention to the chart of the USD index ($USD), which compares the USD to a basket of other currencies. That chart now seems to be breaking out - to the UPside,... READ MORE
Technology is doing very well on the Relative Rotation Graph for US sectors, with a rotation that is well inside the leading quadrant and pushing further into it. If we shift gears and look specifically at the RRG for the technology sector (against XLK), we can see there is one... READ MORE
Last Thursday, 18 April, was the third Thursday of the month, my regularly scheduled guest appearance on MarketWatchers LIVE. As Tom Bowley was enjoying a well-deserved day off, it was just me and Erin on duty. It wasn't my first time co-hosting, but every time I fill in... READ MORE
At yesterday's close, the Financials sector (XLF) crossed over into the leading quadrant on the daily Relative Rotation Graph. The tail of the sector started to curl upward inside the lagging quadrant roughly two weeks ago, before then proceeding to travel higher on both the Jdk RS-Ratio and... READ MORE
When acting in an environment of uncertainty (of which financial markets are a prime example) it is a good habit to double-check any findings. Think of it as an extra pair of eyes to confirm or deny what you (think you) are seeing. In this process, please keep an open... READ MORE
Since the beginning of the month, NFLX is lagging the S&P 500 index by more than 5%. This is following the relative weakness that entered this stock after a strong start of 2019, where NFLX initially ran from $230 to $370 but started to move sideways, facing heavy... READ MORE
Relative Rotation Graphs are a great tool to use to visualize sector rotation, along with other asset rotations in various universes. If you have used RRGs regularly and have monitored multiple rotational patterns, you may have noticed that the rotations do not always travel through all four quadrants in sequential... READ MORE
Looking over some Relative Rotation Graphs this morning showed me that the Information Technology sector is currently the strongest sector in the S&P 500 universe. XLK is positioned well inside the leading quadrant and is being powered further into that space by a long tail. It is difficult... READ MORE
For asset allocation analysis, I generally use VBINX, a balanced index fund by Vanguard that holds 60% in stocks and 40% in a mix of different bonds. This balanced portfolio (total return basis) just broke to new highs this week. Meanwhile, neither stocks (SPY) or bonds (IEF) have accomplished that,... READ MORE
On the Relative Rotation Graph for US sectors, the Financials sector (XLF) is not in the best shape at the moment. It is positioned inside the lagging quadrant and heading lower on both axes. So, not much good there. At the moment I am in New York City to attend... READ MORE
Last night I arrived in Toronto for a weekend with my son and his family, before heading towards New York to attend the CMTA symposium next week. So for this article, it only seems appropriate to have a look at the Canadian sector landscape from an RRG perspective. The Relative... READ MORE
The weekly chart for UnitedHealth (UNH) shows a steady uptrend in both price and relative (vs $INDU) since the start of 2016. That three-year move just came to an end. The uptrend in relative strength emerged out of the low that was set in late 2015. Since then, UNH is... READ MORE
I like to keep an eye on what's going on in the world around us. That means also monitoring what's happening in markets that are maybe not directly of interest when it comes to trading or investing. For stock markets around the world I like to... READ MORE
The list of pre-defined groups in the RRG-menu has been expanded with the universe covering Indian sectors against the Nifty 500 index as the benchmark. Very recently also the universe of individual stocks making up the Sensex 30 index was added. With the Nifty 50 group already on the list,... READ MORE
This Relative Rotation Graph shows the rotation for asset classes over the past 9 weeks. The main observation is that fixed income related asset classes are all inside weakening and heading, rapidly, towards lagging. SPY (stocks) is close to returning into the leading quadrant. The strongest rotation at the moment,... READ MORE
The Relative Rotation Graph shows the FAANG stocks against $NDX on a daily basis. The strong move of GOOG is evident and tracks the recent break of resistance. Out of these five stocks, four are at the right-hand side of the graph, indicating a relative uptrend against the Nasdaq 100... READ MORE
The above Relative Rotation Graph shows the daily rotation over the past 20-days for the Utilities and Industrials sectors. I have isolated the tails of these two sectors to be able to show them in more detail and highlight the opposite directions that they started moving in. When you bring... READ MORE
The daily RRG for US sectors shows a lot of sectors "hooking" lower and only two sectors that are, still, at a positive RRG-Heading, ie rising on both axes. The chart above is showing a 5-day tail on every sector. if we look at the lengths and trajectories... READ MORE
The Materials sector, XLB, is testing overhead resistance around $56. This is the level where lows have been formed in 2017 and 2018 as well as two important highs at the end of 2018. For the time being, the attempt to break is failing, and this is visible on both... READ MORE
The chart above shows the weekly rotation for the Materials sector, XLB, within the universe of US sectors against SPY. After the tail turned upward inside the lagging quadrant, XLB kept up with the performance of SPY and moderately outperformed the market until the sector started to lose relative momentum... READ MORE
On the weekly Relative Rotation Graph for US sectors, XLI, the Industrials sector is crossing over into the leading quadrant from improving. This indicates further improvement for Industrial stocks compared to other segments of the market. While zooming in on the RRG for Industrial stocks against XLI I noted the... READ MORE
Here's some shameless self-promotion! On Monday 11 March I will be doing an RRG presentation at the TradersEXPO in New York and you are invited. For FREE ;) Julius presenting RRG at TradersEXPO New York I have never attended one of the TradersEXPO events let alone presented at them... READ MORE
My last article in the RRG blog looks at sector rotation for US sectors and how there are some disconnects between groups of sectors on both the daily and the weekly time frames. My conclusion from that article was that the current rotational patterns are sending mixed signals which makes... READ MORE
The Relative Rotation Graphs, both daily and weekly, for US sectors are showing big disconnects between sectors. The image above holds the US sectors and shows daily rotations. It is immediately obvious that there is a big gap/disconnect between the right (=positive) side and the left (=negative)side of... READ MORE
With more and more eyeballs looking at the Indian stock market and data for individual stocks and sectors becoming available on Stockcharts.com I started to keep an eye on developments in that market via Relative Rotation Graphs. To make it easier (for you but also myself), the NIFTY 50... READ MORE
One of the choices in the drop-down selection on the Relative Rotation Graphs page is the DJ-industrials (Dow 30 Industrials). This RRG shows the rotation of all 30 Dow stocks against the $INDU. The RRG above shows the daily rotation and highlights the rotation of JP Morgan Chase & Co.... READ MORE
On the daily Relative Rotation Graph for US sectors, the rotation of Financials stands out. The tail is relatively long, indicating that there is good momentum behind this move, The bad news is that the rotation is taking place inside the weakening quadrant and has almost reached the lagging quadrant.... READ MORE
The Relative Rotation Graph shows the rotation of the stocks in the Consumer Staples sector against XLP, the Consumer Staples sector index. Keen observers may notice that I have left out COTY and CAG because they are very disconnected and distorting the picture. If you click on the image and... READ MORE
The chart that I want to share with you today is part of a (bigger) research project that I am doing with regard to the various phases in economic cycles and their relation to the (shape of) yield curve. The chart above shows the S&P Index in the... READ MORE
This article was published in the RRG blog on 31 January and takes a look at the Bloomberg Commodity Index Groups through the lens of a Relative Rotation Graph. When possible, I prefer to use data-sets that come from the same family and creating a "closed universe." This... READ MORE
In this article, we are going to take a look at commodities using Relative Rotation Graphs and the Bloomberg commodity index family. When possible, I prefer to use data-sets that come from the same family and creating a "closed universe." This is a universe where all securities on... READ MORE
The Relative Rotation Graph for US sectors shows a remarkably steady rotation for the Real-Estate sector. This is a daily RRG showing a 15 day tail, or three weeks. Yesterday XLRE crossed over into the leading quadrant and is now the only sector inside the leading quadrant at a solidly... READ MORE
The Relative Rotation Graph for US sectors is showing a split picture. On the right, we have Utilities, Real-Estate, Consumer Staples and Healthcare. With the exception of Real-Estate maybe, these are generally accepted as "defensive" sectors. All other sectors (7) are positioned to the left of the benchmark... READ MORE
One of the pages that I often visit on Stockcharts.com is the sector summary. It gives a tabular overview of the price changes that occurred over a certain period (you can choose). From that page, it is possible to open a Relative Rotation Graph that breaks the sector down... READ MORE
If you are a regular user of Relative Rotation Graphs you are probably aware of the pre-defined groups (universes) that you can choose from when you open the drop-down box at the top op the chart. In order to make life easier (for our users) and provide structure, I am... READ MORE
After the sharp sell-off in Q4 of last year, the market (SPY) started to recover from its lows near 235. And IMHO it is still a "recovery" before turning down again as opposed to a "turnaround" back up. This weekly chart above clearly shows that the... READ MORE
The Relative Rotation Graph above highlights the rotation of IRM (Iron Mountain Inc.) in comparison to the other stocks in the S&P Real-Estate sector (XLRE). The sector itself is interesting to keep an eye on as it is positioned well inside the leading quadrant but rolling over, at... READ MORE