On this edition of StockCharts TV’s Sector Spotlight, I highlight interesting seasonal patterns for various sectors and explore if they are aligning with the current rotations on the Relative Rotation Graph. It looks like August has some interesting seasonal anomalies that are worth exploring. 7 out of the 11 sectors are showing significantly high or low percentages in terms of seasonal out-performance. Four of these sectors are currently showing tails on the RRG that align with their seasonal patterns which makes them worth keeping an eye on in the coming month.
In the overview for asset classes and sectors, I assess the rotations and price moves over the last two weeks and conclude that, despite the recovery of last week, the bigger picture still keeps me cautious. Only two to three sectors are on a positive trajectory vs. the S&P 500 and, on the weekly chart, the negative divergence continues to build up. All in all, the upside looks arduous while ease of movement seems to be to the downside.
This video was originally broadcast on July 27th, 2021. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the StockCharts TV on-demand website StockChartsTV.com, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.
Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.
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Julius de Kempenaer is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on StockCharts.com in July of 2014.
After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers).