The Relative Rotation Graph shows the rotation of the Health Care sector over the last five weeks against SPY. The dimmed trails are the other US sectors. The strong rotation from improving into leading at a steady positive RRG-Heading (0-90 degrees) suggests that further improvement against SPY is likely. In... READ MORE
Instead of showing asset class rotation or sector rotation, Relative Rotation Graphs can also be used to show rotation among various market segments. You have all seen or heard about a breakdown of the market in large-, mid-, and small-cap stocks. And maybe also the breakdown between growth and value... READ MORE
Every now and then I run a Relative Rotation Graph showing the rotation of various size and value/growth indices for the US market. They (can) give good insights into what areas of the stock market are in favor and which ones are rotating out of favor. At the moment... READ MORE
Relative Rotation Graphs are a great tool to visualize equity sector rotation and they are probably most used for that purpose. However, there are many more areas where RRGs can be used to get a big picture view of what is going on among a group of securities or related... READ MORE
Relative Rotation Graphs are a great tool to visualize equity sector rotation and they are probably most used for that purpose. However, there are many more areas where RRGs can be used to get a big picture view of what is going on among a group of securities or related... READ MORE
The current Relative Rotation Graph for US sectors is sending a very clear message for two sectors! Money is flowing OUT of Energy stocks (XLE) and INTO Staples (XLP). The opposite rotation for those two sectors is almost jumping off the screen when you open up this RRG. It is... READ MORE
While working on my previous article, one stock, in particular, drew my attention. I only casually addressed it in that article as I wanted to do a more extensive review separately. We are talking about Walt Disney (DIS). In this post, I will try to build a longer-term picture with... READ MORE
Watching the Relative Rotation Graph of the 30 Dow stocks, there are a few observations that can be made. To begin with, there is a high concentration of stock inside the leading quadrant, including some mega-cap names like AAPL and MSFT and in the improving quadrant. The bottom half of... READ MORE
On the Relative Rotation Graph that shows all members of the Health Care sector (XLV) against the XLV benchmark, REGN stands out in a positive way. On the weekly RRG, the stock is positioned inside the improving quadrant, close to leading and moving at a strong RRG-Heading while the week-to-week... READ MORE
Relative Rotation Graphs are not only used to look at sector-rotation or help with asset allocation decisions but can also help you to pinpoint potential forex trades. Most currency traders are short-term orientated so the RRG above is a daily chart showing the rotation of the Norwegian Krone and the... READ MORE
This is an extended version of the recent RRG article in Chartwatchers "Checking out the land down under on a Relative Rotation Graph". Even if your investment portfolio is tied to a specific country or region it makes sense to keep an eye on developments around your geographical... READ MORE
On the Relative Rotation Graph above I have grouped a selection of world equity market indices, mainly some big regions, and put them against the Vanguard Total World Stock Index (VTWSX) as the benchmark. What immediately grabs our attention, or at least mine is the fact that this selection is... READ MORE
A good start of the day, at least for me is to go to the StockCharts.com dashboard and look at the Top 10, most active, market movers, in the S&P 500 index. The table gives a quick idea of what has happened the previous day. From there... READ MORE
This (DAILY) Relative Rotation Graph shows the rotation of the Health Care stocks against their XLV benchmark. One stock really stands out because of its wide rotation. ALGN crossed over into the leading quadrant, from improving, last May and sharply moved higher on the price chart since then while building... READ MORE
Last week Thursday (6/21) was the third Thursday (try saying that out loud ;) ) of the month. The day that I join Tom and Erin in the Market Watchers Live show to talk about Relative Rotation Graphs. In the show, which you can play back here, I talked about different... READ MORE
Note 1: This article was posted earlier as part of the ChartWatchers newsletter last weekend. One paragraph and an up-to-date daily version of the Relative Rotation Graph for asset classes has been added to the bottom of this article. Note 2: A pre-populated universe for Asset Allocation has been added... READ MORE
The Relative Rotation Graph shows the rotation of the ten S&P 500 sector ETFs (SPDR family) against the S&P 500 index ETF (SPY). The rotation of the technology sector (XLK) back into the leading quadrant after a short period of rotation through the weakening quadrant is... READ MORE
On Monday 21 and Tuesday 22 May I stepped in for Erin Swenlin and acted as the co-host to Tom Bowley in the Market Watchers Live show. Clearly, we talked a lot about RRGs but as MWL is not all about RRG I wanted to bring something different to the... READ MORE
In the previous RRG blog, I introduced the availability of pre-populated groups holding individual equities for each of the ten S&P sectors. This addition makes it much easier for users of the Relative Rotation Graph tool on Stockcharts.com to drill down to the individual equity level from... READ MORE
If you have ever watched one of the webinars or Market Watchers Live shows that I have done here at Stockcharts.com, you may have seen me use Relative Rotation Graphs holding individual stocks and compare them to their sector benchmark. After each appearance, I always got a few questions... READ MORE
For a very long time equities have been the dominating asset class, stuck at the right-hand side of the Relative Rotation Graph showing six different asset classes. That situation is now changing. Equities (SPY) is still at the right hand (positive) side of the RRG but inside the weakening quadrant,... READ MORE
Yesterday, Thursday 19th of April, it was my turn again to join Tom and Erin in their Market Watchers Live show again. By the way, I will be joining them every third Thursday of the month to talk about RRG and talk about market developments from an RRG point of... READ MORE
Last week I attended the CMT Association’s annual symposium in New York City. One of the industry events that I visit each year. On the one hand to learn from other industry professionals but very much also to catch up with friends and maintain relationships. As I am writing... READ MORE
The Relative Rotation Graph for US sectors is showing us a few interesting rotational patterns for the week ending 4/6. Studying the RRG above, there are two sector pairs which rotations I want to investigate a bit further. The first one is Consumer Discretionary vs Utilities because they are... READ MORE
Facebook has been making headlines recently. Not only in the newspapers and online news services but also in some of the blogs at Stockcharts.com. With hindsight everything is easy and we can find many “signals” that “would have” given us early warning signals that we “should” have seen and... READ MORE
Last week I was the guest of Tom and Erin in their Market Watchers Live show on stockcharts.tv. In that show, I talked about the difference between open and closed universes and what it means for a Relative Rotation Graph and following that discussion we had a look at... READ MORE
In this blog, I will take another look at the 30 stocks that make up the DJ Industrials index. A quick look learns that the real outsider in this index is GE which is positioned far to the left on the RRG, moving higher (almost vertical) on the JdK RS-Momentum... READ MORE
An inspection of the weekly Relative Rotation Graph for US sectors at the beginning of this week (ending 2 March) reveals that we have: * 3 sectors in leading * 2 sectors in weakening * 4 sectors in lagging * 1 sector in improving Out of these 10 sectors, we have only 2 at... READ MORE
Relative Rotation Graphs are a great tool to visualize sector rotation and that is probably where you will see them applied most. But they can be used for so many more (rotational) variations of different universes or similar universes in a different way. In this post, I will show you... READ MORE
The rough ride down in the markets last Friday was something that was probably expected by many but still came as a surprise. I am not a big fan of “calling tops”, or troughs for that matter. Mainly because many of these “predictions” have had many failed attempts to “call... READ MORE
The Relative Rotation Graph shows the positions of US sectors against SPY as of 26 Jan. Sometimes the rotational patterns are not so clear but in this example, there is one observation sending a screaming message: Avoid Real-Estate and Utilities. At the other end of the spectrum inside the leading... READ MORE
In my last blog, we looked at the 30 components of the Dow Jones Industrials Index and more specifically at the relative positioning and relative rotation of these 30 stocks around their common denominator the DJ Industrials index ($INDU). And despite the fact that this is valuable information you may... READ MORE
The Relative Rotation Graph shows the members of the DJ Industrials index against $INDU. This is a so-called closed universe which means that all elements that make up the universe are present in the plot. If we would calculate all the distances (vectors) from the center of the chart to... READ MORE
As 2017 draws to an end, the Relative Rotation Graph for asset classes is sending a very clear message! Equities are leading the way into 2018! The RRG above shows some ETFs representing various asset classes and uses VBINX, a balanced index fund, as the benchmark. With only SPY, representing... READ MORE
The Relative Rotation Graph for US sectors is showing us three sectors to avoid but also two which may offer good potential. Inside the leading quadrant, we find XLK and XLF still being the strongest sector in US equity market based on their JdK RS-Ratio reading. Energy (XLE) started heading... READ MORE
Last week Wednesday (29 November) I was the guest of Tom and Erin in the Market Watchers Live show. During the show, we talked a lot about RRG, Relative Rotation Graphs, covering some basics and some new(er) techniques and interpretations that I have been working on. If you missed... READ MORE
Above is the Relative Rotation Graph for the DJ Industrials index, comparing the relative rotation of all members around $INDU. On this chart, a few stocks stand out because of their clear directional moves. Inside the leading quadrant, INTC, CSCO, and WMT are pulling away from the crowd further into... READ MORE
The Relative Rotation Graph above shows all the members of the S&P 500 Energy sector against XLE, the ETF that tracks the Energy sector price index. The main reason for looking at this universe at the moment is the fact that the sector (XLE) on the RRG for... READ MORE
The Relative Rotation Graph above plots a number of world equity markets against the FTSE all-world index and shows their relative rotation around this benchmark. With all the chatter going around on the S&P 50o index camping in the nose-bleed area this gives a refreshing angle to look... READ MORE
The Relative Rotation Graph above holds six ETF that represent various asset classes. The picture gives you the big picture of what is going on at asset class level on a relative basis against VBINX which is a Vanguard balanced index fund (60% equity / 40% bonds). This one frame immediately... READ MORE