Watchers of my show Sector Spotlight will know that I have been watching the development of commodities as an asset class that's going through a long turnaround. Recent developments continue to reinforce that view. The Relative Rotation Graph shows the rotation for a universe of asset class ETFs... READ MORE
When looking at Relative Rotation Graphs showing large-cap sectors and small-cap sectors, we usually see rotations for the various sectors that are more or less in line with each other. That's not surprising, as the small companies are active in the same sector as their large counterparts. Sometimes,... READ MORE
In this edition of StockCharts TV's Sector Spotlight, after a rocky week and a volatile Monday, I evaluate the rotations for asset classes and sectors on Relative Rotation Graphs. Both groups are showing some important shifts that suggest a further move to defense is in order. As it... READ MORE
While looking at the Financial sector, I noticed that the group Asset Managers is currently at a very weak rotation against the S&P, as well as its sector index XLF. After returning into the leading quadrant from weakening, which is usually a strong sign, $DJUSAG rapidly hooked back... READ MORE
On the back of a lot of earnings announcements, the financial sector is getting a lot of attention this week. A few stocks, led by SIVB, FRC and GS, got hurt pretty bad yesterday with >5% declines. The RRG above shows the (top 50) stocks inside the financial sector.... READ MORE
In this edition of StockCharts TV's Sector Spotlight, after going over the current rotations for asset classes and sectors, I use the Equal Weight sectors to update and gauge the current position of the market in relation to the economic cycle. Since December, things seem to have shifted... READ MORE
Relative Rotation Graphs are mostly used to show exactly that -- the RELATIVE Rotation of securities against a benchmark and against each other. However, they offer many more possibilities. One of the options is to change the benchmark to $ONE. That is essentially a straight line at value 1. This... READ MORE
The utilities sector is showing a strong rotation over the last weeks. The sector moved back into lagging from improving in the week starting 18 October, then rotated through lagging and re-entered the improving quadrant again in the week starting 13 December at a strong RRG-Heading. The next Relative Rotation... READ MORE
In this edition of StockCharts TV's Sector Spotlight, I cover the rotations for asset classes, sectors and crypto. The break below support of GOVT gets attention while the recent sector rotation out of Consumer Discretionary and Technology pushed the S&P 500 to the lower boundary of... READ MORE
One of the more prominent rotations on the (weekly) Relative Rotation Graph for sectors is the strength displayed by the defensive sectors. In the RRG above, I have marked an oval around Staples, Utilities and Health Care. These are the three "defensive sectors" in the universe and they... READ MORE
On the first 2022 edition of StockCharts TV's Sector Spotlight, I look back at rotations that happened over the holiday period and then address the monthly charts that completed in December. The long-term trend in the yield curve shows a rapid flattening in December and, historically, that seems... READ MORE
Here we are, on the last day of the year, writing my last ChartWatchers newsletter contribution for 2021. By the time you are reading this, it will be 2022. So let me kick off by... wishing you a very happy and above all healthy new year!! Given the situation the... READ MORE
Over the past several weeks, the materials sector has continued to improve very gradually and is now on the verge of crossing over into the leading quadrant. The bottoming process of relative strength against SPY is still ongoing and has been picked up by the RRG-Lines, which are both rising.... READ MORE
My longer-term outlook for the general market is still based on a continuing uptrend. However, over the last few weeks, defensive sectors picked up on the Relative Rotation Graph against the S&P 500. Of these three sectors, Healthcare (XLV) is the biggest in terms of market capitalization at... READ MORE
One of the predefined universes/groups on the RRG page is for Growth/Value. Many investors look at this relationship to help them determine whether the market is in a risk-on or risk-off mode. Just pull down the "Groups" selection box and look for Growth / Value. When browsing... READ MORE
Watching the rotation of the Real Estate sector (XLRE) on a Relative Rotation Graph shows the tail inside the lagging quadrant after a long rotation through leading and weakening. Six weeks ago, XLRE moved into the lagging quadrant, but quite rapidly started to pick up relative momentum again, pushing the... READ MORE
After dipping to 4500, the development of a potential inverted head-and-shoulders pattern started to take shape on the price chart of the S&P 500. The overhead resistance just above 4700 has already been developing since the market first reached that area at the start of November. Very recently,... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I take on the asset class and sector rotation as it played out last week. The relationship between stocks and bonds continues to be in favour for stocks while, at the sector level, Real Estate seems to be making an... READ MORE
In this week's episode of Sector Spotlight, I reviewed the current position of markets (sector rotation) in combination with the theoretical framework provided by the Sector Rotation Model (Sam Stovall). This article provides a quick write-up of that segment. The sector rotation model shows the typical cyclical movement... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I take a good look at the current state of asset class and sector rotation. I talk you through the daily and weekly rotations on the respective Relative Rotation Graphs, highlighting the strength of the USD, the pause in commodities... READ MORE
The S&P 500 is still holding up inside the boundaries of its rising channel, but the market is nervous, which resulted in a VIX reading above 30. That hasn't happened since February. Nervous markets, or rather their participants, usually mean that people start checking out defensive... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I take on both seasonality and the monthly charts for November, starting with a quick look and analysis of current sector rotation and its potential impact on the S&P 500. After that, I look at seasonal patterns for... READ MORE
First of all, I need to apologize for the absence of writing a blog article (and publishing a Sector Spotlight Video). In the intro of today's episode of Sector Spotlight, I explain a bit about what happened. But to make a long story very short, on Wednesday evening,... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I take my usual look at last week's rotation in Asset Classes and put that into longer-term perspective. From this universe, I highlight the strength of the US dollar and take a closer look at the relationship between... READ MORE
Two sectors that have my attention at the moment are Industrials (XLI) and Materials (XLB). Looking at the Relative Rotation Graph above, we can see how similar the rotation for both sectors has been over the last 23 weeks, and still is. A few weeks ago, both tails rotated back... READ MORE
Earlier this week, I was preparing for my participation in a new episode of The Pitch. Unfortunately, that show got canceled as our host, Dave Keller, got sick with a cold. One of the stocks I was going to pitch is PLUG. I ran into this company while working my... READ MORE
This may seem an odd title because, you might say, "tech broke out ages ago." While that is true with regard to price, it certainly was not the case for relative strength. The (raw) RS-Line peaked back in August 2020 and has moved sideways in a narrow range... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I discuss the current rotations in asset classes and sectors and bring the daily rotations into a longer-term perspective on the weekly Relative Rotation Graphs. Then, in the second half, I extend the use of the break down into Cyclical,... READ MORE
One of the (if not THE) most promising tails on the Relative Rotation Graph for US sectors is on XLY, the Consumer Discretionary sector. Over the last five weeks, the tail on XLY shows an almost straight line into the leading quadrant while gaining on both axes. Things do not... READ MORE
On this edition of StockCharts TV's Sector Spotlight, being the first Tuesday of the month, I take on the completed monthly charts for October. I kicks off the show with a look back at last week's rotations on the Relative Rotation Graphs for Asset Classes and... READ MORE
Offensive vs Defensive sector rotation always is a theme in stock markets. Sometimes a little more on the forefront, sometimes a bit more on the background. Sometimes we can read very clear messages from certain rotations, sometimes a little less. At the moment, I believe, the offensive/defensive rotation is... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I take a quick look at the current state of Asset Class rotation through the RRG lens. After that, I move on to Sectors. After a quick assessment of last week's rotation, I bring in BETA again to... READ MORE
The two crucial elements of a Relative Rotation Graph (RRG) are the "universe" and the "benchmark". The Benchmark The benchmark for a Relative Rotation Graph is the common denominator for all securities that are present in the universe. Theoretically, the benchmark can be any index or... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I dive into the current state of sector rotation and highlight the relationship between the Consumer Discretionary and Consumer Staples sectors, as Discretionary is trying to pull away after a period of indecisiveness. The XLP:XLY ratio is breaking out... READ MORE
The sector rotations on the Relative Rotation Graph are still confusing. The Consumer Staples and Discretionary sectors are currently moving in the same direction where they normally move in opposite directions. Based on rising rates, one would expect both Banks/Financials and Real-Estate to benefit, but where XLF is definitely... READ MORE
For the 100th edition of StockCharts TV's Sector Spotlight, I invite market veteran Tom Dorsey to join me for a chat and celebrate these past 100 episodes! We touch on how and when we had our ah-ha moments, or "epiphanies" as Tom refers to it, where... READ MORE
On the Relative Rotation Graph for sectors, the tail on XLF is showing one of the most promising rotations, being inside the improving sector and traveling at a strong RRG-Heading towards leading. Relative and price-technical arguments aside, I think there are two charts that support a further rotation towards and... READ MORE
In a recent conversation, somebody mentioned "New York Fang" to me. I was under the impression he was referring to the FANG stocks. Only later did I understand that he was talking about an ETF and an associated index which is a bit broader than "just"... READ MORE
On this edition of StockCharts TV's Sector Spotlight, I start the month by evaluating the monthly charts for asset classes and sectors. Despite the weak ending of the month in September, three sectors managed to squeeze out a new all-time-high. However, none of them were able to hold... READ MORE
The Bond Market Holds all the keys. And one of the key charts here is TLT. After setting a big double top in 2020 and completing it at the end of the year, the start of 2021 was characterized by an acceleration lower, pushing yields higher. Support was found around... READ MORE