The best five categories, #28 | RRG chart

Sector’s rotation stable, technology still becomes king

Despite the slight increase in the S & P 500 last week, the sector’s rotation environment presents interesting pictures. For the first time in recent memories, we have no change in the composition of the sector’s ranking as well as the top fifth place. Can this stability return to the more important trend of relative intensity and to the performance of the portfolio?

1. (1) Technology- (XLK)
2. (2) Industry- (XLI)
3. (3) Communication Service- (XLC)
4. (4) Finance- (XLF)
5. (5) Material- (XLB)
6. (6) Utility- (XLU)
7. (7) Consumer discretion- (xly)
8. (8) Consumer Staple- (XLP)
9. (9) Real Estate- (XLRE)
10. (10) Energy- (XLE)
11. (11) Health Care- (XLV)

technology

The technical division continues to bend muscles and rises to the price ratio, maintaining stable momentum around 103. This continuous strength indicates that technology remains a field to win in the current market environment.

In Daily RRG, we are looking at a wonderful rotation backup of technology while being in the weakened four -way. The primitive line of technology almost goes upright to reflect a very strong RRG line. The amount of exercise may be slightly lost, but there is no mistake. Tech is still the most powerful player in the game.

industry

The industry is currently rotating in major quadrants and is on the verge of moving to weakening. However, it is important to pay attention to the fact that it still maintains the second highest ranking according to the RS ratio. This positioning suggests that the possibility of rotation towards the preceding fourth section is still in progress.

Daily RRG shows that the industry moves further into a leading quadrant to check the strength and maintain stable exercise.

After the overhead resistance, the price chart is higher and the new low low level is seen in the relative robbery. The RS Momentum Line is still lower than 100, but the RS ratio line is maintained at a high level, and if the RS line can maintain a series of low lowest lows, the RS Momentum line will soon be out of the floor and the RS ratio will increase.

Communication service

The communication service division is located within the weakening of the daytime RRG, but it is now much lower the RS ratio. It is moving to the delayed corner, which is about the top fifth largest trend.

Every day, RRG has moved to delayed four. It has begun to delay negative exercise, but we have to rotate this daily RRG to an improved quadrant and lead the weekly tail to the main quadrant.

The price chart shows this sector withheld after higher places, and is now supported at the old resistance level, regardless of the rules that are supported in the future. Children with problems here have fallen below the RS support line. This is causing enormous damage on the RRG line as the RS ratio and RS momentum start to move down.

Finance

Finance is within the delayed quadrant of the weekly RRG, which moves to a negative title. This means that a significant amount of intensity is required every day to keep this sector in the top five.

In the price chart, the finance is playing with overhead resistance around 52 years, and it suggests greater potential on the price chart in the form of small integrated areas and pans.

However, this is not confirmed in the relative robber chart where the RS line has risen and moves lower.

ingredient

The ingredients are also inside the daytime RRG’s delayed four -side and travels negative titles such as finance. Here too, the daily team’s strengths are needed to keep the section in the top 5.

The ingredients maintain the price chart after a break that can be explained as a head and shoulder reversal pattern. The relative robbery hugs the falling resistance line, which is included within the boundary of the falling channel.

To turn the trend, relax must be higher. Only upward brake out with a relative downward trend offers a life line of a material for turning the RRG line and maintaining the position in the top 5.

Portfolio performance

The portfolio continues to delay S & P 500 and now sit behind 8%. It seems to be stabilizing now, but of course we don’t want. Based on historical back tests, a decrease of about 8-10%is unprecedented. But it’s a bit disappointing that it happens immediately when it starts working in a half -year -old environment.

In other words, the fact that a significant volatility period has passed in recent months is a signal that it is ready to enter a new period as a stable relative trend that can return the portfolio back to performance.

#Stayalert and send a good Lord. Julius