In the second half of 2022, the price chart for XLY started to form a falling wedge pattern. This pattern or formation is characterized by two converging trendlines, BOTH moving lower. The falling wedge variant comes in two variations. It can be either a continuation within an established uptrend or a reversal pattern at the...
Author: Julius de Kempenaer
Sector Spotlight: Sector Rotation Out of Defense | RRG Charts
In this episode of StockCharts TV’s Sector Spotlight, I address the current state of asset class rotation, then move on to sector rotation. I divide the market in three groups — Offensive, Defensive and Sensitive — and find an interesting alignment that should be taken seriously as an early warning for an ongoing shift between sectors....
Two Highly Entertaining Stocks to Watch | RRG Charts
After a 50% decline, you need to make a 100% return to break even. That is precisely what happened to the Communication Services sector. In August 2021, the Communications Services Select Sector SPDR fund (XLC) peaked at 85 and, from that point onward, started a disastrous decline, bringing its price back to 45, almost 50%...
Sector Spotlight: Sector Rotation Model All Over the Place | RRG Charts
In this episode of StockCharts TV’s Sector Spotlight, I look at the current state of sector rotation, then walk through all 11 sector charts to make an assessment on their individual (relative) trends and their near-term support and resistance levels. Next, I use all this information to “reverse engineer” support and resistance levels and a price...
Return of the REITs? | RRG Charts
On the Relative Rotation Graph for US sectors, the tail for XLRE, the Real Estate Select Sector Fund, is inside the improving quadrant and heading towards leading at a positive RRG-Heading. This is one of the few tails with a positive RRG-Heading, between 0-90 degrees. The other ones are Utilities, recently discussed in this article,...
Sector Spotlight: Reverse Engineering a Price Target for SPY | RRG Charts
In this year’s first episode of StockCharts TV’s Sector Spotlight, I look at the current state of sector rotation, then walk through all 11 sector charts to make an assessment on their individual (relative) trends and their near-term support and resistance levels. Next, I use all this information to “reverse engineer” support and resistance levels and...
Sector Spotlight: Seasonality Points to a Weak Start for 2023! | RRG Charts
In this year’s first episode of StockCharts TV’s Sector Spotlight, I address the expected seasonal performance for the stock market and the individual sectors. I locate one sector at high odds for outperforming the S&P 500 in January, as well as a sector with high odds to underperform the S&P 500. In the second segment, I...
Looking Back at The Biggest Rotation of 2022 | RRG Charts
I have been quiet on the video and blog side of things over the past weeks. Still, just before you pop the champagne for a grand New Year’s eve celebration, I want to take the opportunity to look back at maybe the most important or dominant rotation that took place in 2022. I am talking...
Sector Spotlight: Stealth Sector Rotation for XLY | RRG Charts
In this episode of StockCharts TV’s Sector Spotlight, I present a thorough review of the current state of sector rotation in the US market. Materials and Industrials are showing strong tails on the Relative Rotation Graph, but the most interesting — Under The Hood Rotation — is showing up in the Consumer Discretionary sector. I discuss...
Sector Spotlight: USD Index Resting on Major Support | RRG Charts
In this episode of StockCharts TV’s Sector Spotlight, on this first Tuesday of the month, I address the trends for asset classes and sectors on the monthly charts. There is no clear trend for “the market” — only one sector is in an uptrend, while five are in downtrends and five are more sideways. The USD...