Where I am finding value in today`s market

I was playing around with Relative Rotation Graphs (RRG) on the weekend with a focus on changes in sector leadership (see my previous post RIP Recession. Reflationary resurrection next?). RRG charts measure how a stock or sector is performing relative to a benchmark on a short and long term basis as a way of better understanding the evolution of market leadership. An idealized rotation cycle would see a stock or sector rotate in a clockwise fashion starting at the lower right quadrant (weakening) to the lower left (lagging) to upper left (improving) and to the top right (leading).

When I turned the lens from sector leadership to market styles, or factors, I got a big surprise.

The full post is at our new site here.




Site Notice
I am happy to announce that the new site is now re-open for new subscribers. We closed our site to new subscribers in January in order to better control the rapid growth of our community. After listening to feedback and making a few tweaks to the site and the content, such as the addition of a mid-week technical update, the site is now re-open for business.

You can subscribe for 1 year (US $249.99), 1 month (US$24.99)  or 1 day (US$4.99);. Even if you are not ready to subscribe, you can always sign up for email notification of free posts as they are free and available to the public two weeks after publication.

As a reminder, here is a sample of some of past posts:

• Why I am bearish (and what would change my mind) May 2015
• Relax, have a glass of wine August 2015
• Why this is not the start of a bear market September 2015
• The reason why the bulls should be cautious about a January hangover December 2015
• Why this is a correction and not a bear market January 2016

I am reminded of a variation on an old adage:

If you give a man a fish, he'll eat for a day.
If you teach a man how to fish...he'll want to get a boat.

We would love to have you join our community. We stand ready to help you build your own boat. Come over to the new site and take a look.