The Greatest 5 Sectors, #17 | RRG Charts

Actual Property and Healthcare swapping positions in High 5

The highest 5 sectors present outstanding stability, with Shopper Staples, Utilities, Financials, and Communication Providers holding regular within the prime 4 positions.

The one change is Actual Property changing Well being Care. This shift underscores the continued defensive tilt available in the market.

Within the backside half of the rating, Supplies and Shopper Discretionary swapped positions.

1. (1) Shopper Staples – (XLP)
2. (2) Utilities – (XLU)
3. (3) Financials – (XLF)
4. (4) Communication Providers – (XLC)
5. (6) Actual-Property – (XLRE)*
6. (5) Healthcare – (XLV)*
7. (7) Industrials – (XLI)
8. (9) Supplies – (XLB)*
9. (8) Shopper Discretionary – (XLY)*
10. (10) Vitality – (XLE)
11. (11) Know-how – (XLK)

Weekly RRG

Trying on the weekly Relative Rotation Graph (RRG), we observe ongoing power in Shopper Staples and Utilities. Each sectors are advancing additional into the main quadrant and proceed to realize on the RS ratio axis.

Actual Property can be making a notable transfer deeper into the main quadrant. Financials and Communication Providers are positioned getting ready to the weakening quadrant. Nonetheless, they’re nonetheless sustaining elevated RS ratio ranges, which retains them securely within the prime 5 — at the very least for now.

Every day RRG

Shopper Staples and Utilities: Each reside inside the weakening quadrant, however at excessive RS ratio ranges. This mix, together with their power on the weekly RRG, retains them effectively inside the highest 5.

Communication Providers: Moved into the lagging quadrant however with a really brief tail near the benchmark. This positioning permits it to stay within the prime 5 — for now.

Financials: Just like Communication Providers, near the benchmark with a barely longer tail however not displaying vital lack of relative power.

Actual Property: Made a major transfer, pushing into the main quadrant on the each day RRG, combining with its sturdy weekly tail to safe its spot within the prime 5.

Shopper Staples

The Shopper Staples sector stays range-bound on the weekly chart, inflicting relative power to stabilize.

With RRG strains at excessive ranges, we would see some consolidation within the coming week — one thing to keep watch over.

Financials

Financials are choosing up steam once more, closing within the higher half of final week’s bar.

This value power helps the relative power line stay effectively inside its rising channel.

If the sector can preserve this momentum, it is more likely to keep among the many prime performers.

Utilities

Utilities are buying and selling inside their sideways channel, persevering with to push relative power towards (or simply above) resistance.

This power is protecting the RRG strains above 100. Nonetheless, imho, we’ll have to see extra relative power within the coming weeks to maintain Utilities on the prime of the record.

Communication Providers

Communication Providers had a robust week, closing on the prime of its vary towards former help, now performing as resistance.

Primarily based on the value chart, we would count on some resistance and problem for the sector to maneuver larger this week.

Regardless of this, the relative power line stays inside its rising channel, albeit dropping some relative momentum at excessive RS ratio ranges — not regarding at the moment.

Actual Property

Actual Property — the brand new entrant within the prime 5 — is benefiting from a robust bounce off the $36 low two weeks in the past.

It is now beginning to push relative power larger, though not but extraordinarily sturdy.

The RS momentum line is starting to roll over whereas dragging the RS ratio larger.

For now, the mix of each day and weekly relative power has been sufficient to displace Well being Care and safe Actual Property’s spot within the prime 5.

Portfolio Efficiency

The defensive positioning of our portfolio has put a dent in efficiency relative to the broader market.

We’re now trailing the S&P 500 by virtually 3%. Nonetheless, we have seen over the previous few weeks that these variations can equalize quickly when the market strikes within the course of the portfolio.

So, I am not too involved in the mean time — it is all a part of the ebb and move of market dynamics.

#StayAlert and have an incredible week –Julius