Economic Finesse
  • Business
  • Stock
  • Politics
  • Investing
No Result
View All Result
  • Business
  • Stock
  • Politics
  • Investing
No Result
View All Result
Economic Finesse
No Result
View All Result
Home Stock

RRG-Velocity Jumping on XLF Tail

August 24, 2024
in Stock
RRG-Velocity Jumping on XLF Tail

On the weekly Relative Rotation Graph, the rotation still favors almost every sector over Technology. I discussed the opposite rotations between weekly and daily RRGs in last week’s video, which you can find here.

Real Estate

Working off this weekly chart, many tails are drawing attention to themselves. First of all, XLRE has the longest tail and is powering into the leading quadrant, showing that there is a lot of strength behind this move.

This is confirmed on the price chart, where XLRE is breaking above horizontal resistance, which frees the way for further appreciation. The next target for XLRE is the peak at 46, which was set in August 2022.

Utilities

The second one is Utilities, whose tail has sharply rotated back up toward the leading quadrant, signaling the start of a new up-leg within the already established relative uptrend.

Utilities broke above horizontal resistance a few weeks ago and managed to hold up well, and they now seem to be accelerating higher, targeting the all-time-high level near 78.

The long downtrend in relative strength has stalled, with a potential double bottom in the making. The RRG-Lines are both bottoming out and starting to move higher.

Financials

The financials sector, XLF, is just crossing over into the improving quadrant from lagging as the price is breaking to new all-time highs.

Relative Strength is still captured inside a long trading range, but is on its way to the upper boundary. That is causing the RRG-Lines to turn back up. JdK RS-Momentum has already exceeded 100, and JdK RS-Ratio is closing in on that level.

What is interesting about this particular tail is that it is getting longer. RRG-velocity* is increasing, which suggests an acceleration of the rotation.

*RRG-Velocity measures the distances between the nodes on a tail. By adding up distances, we can calculate the tail length, and by comparing the different distances, we can evaluate whether the rotation is speeding up or slowing down.

Financial – Industries

The RRG above shows the industries inside the financial sector against the S&P 500 as the benchmark. The improvement of relative strength is visible in all groups, as they are all on a positive RRG-Heading between 0-90 degrees. We need to change the benchmark to the financial sector index to find the most promising groups.

This gives a more balanced image of the various industries moving around the sector index (XLF). Where all the industries were on a positive RRG-Heading when benchmarked against $SPX, only four remain when using XLF as the benchmark.

Financial Administration

Going over the individual charts of these four groups, I like the one for $DJUSFA – Financial Administration.

This group halved in value from mid-2021 to mid-2022, then started trading in a range until now. This week, $DJUSFA closed above its previous high, clearing the path for a further rise. This price improvement has also led to an improvement in relative strength, with both RRG lines now rising. This makes it the group that could potentially lead the financials sector in the coming weeks.

This is a small group that holds only four S&P 500 stocks.

Out of these four, when compared to XLF, only FI and GPN show a positive rotation.

Fiserv recently confirmed its uptrend by breaking beyond its most recent peak, around 160, while relative strength seems ready to move out of its trading range.

GPN tested solid support just above 90 twice this year and completed a double bottom from where price is now rallying. The upper boundary of a broad trading range can now be pegged near 140, creating well over 20% upside potential.

#StayAlert and have a great weekend. –Julius


Previous Post

Potash, Oil and Metal Shipments Halted as Canadian Rail Workers Locked Out

Next Post

Is Peloton Stock the Next Big Turnaround? What You Need to Know Before It’s Too Late

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent News

    Is a Chinese chain’s blood orange cold brew the future of coffee in America?

    Is a Chinese chain’s blood orange cold brew the future of coffee in America?

    July 8, 2025
    The Best Five Sectors, #26

    The Best Five Sectors, #26

    July 8, 2025
    Questcorp Mining Continues Exploration in Advance of Drilling at the La Union Gold & Silver Project in Mexico

    Questcorp Mining Continues Exploration in Advance of Drilling at the La Union Gold & Silver Project in Mexico

    July 8, 2025
    Canadian Investment Regulatory Organization Trade Resumption – STUD

    Canadian Investment Regulatory Organization Trade Resumption – STUD

    July 8, 2025

    Disclaimer: economicfinesse.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Browse by Category

    • Business
    • Investing
    • Politics
    • Stock

    Recent News

    Is a Chinese chain’s blood orange cold brew the future of coffee in America?

    Is a Chinese chain’s blood orange cold brew the future of coffee in America?

    July 8, 2025
    The Best Five Sectors, #26

    The Best Five Sectors, #26

    July 8, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2024 Economic Finesse. All Rights Reserved.

    No Result
    View All Result
    • About us
    • Home 1
    • Home 2
    • Home 3
    • Home 4
    • Home 5
    • Home 6
    • Privacy Policy
    • Terms & Conditions
    • Thank you

    Copyright © 2024 Economic Finesse. All Rights Reserved.