Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Stocks

The Best Five Sectors, #1

by admin January 4, 2025
January 4, 2025
The Best Five Sectors, #1

HAPPY NEW YEAR!!!

Ever since the introduction of RRG back in 2011, many people have asked me questions like: “What is the track record for RRG” or “What are the trading rules for RRG”?

My answers have always been, and will continue to be, “There is no track record for RRG, as there is not one set of rules.”

Relative Rotation Graphs are primarily a data visualization tool that can be applied to many different markets, on many different time frames and with varying degrees of risk. Most of the time, I countered these questions with “What is the track record of a bar chart?” or “What are the trading rules for a bar chart?” That said, it is possible to come up with some “rules” or “conditions” that can be tested and repeated — in particular, two prerequisites for a quantitative and rules-based approach.

On and off over the last few years, I have been “playing around” with a few different approaches to get to something that can run objectively. This is still very much a work in progress project, but my plan for 2025 is to share the outcomes of version 1 of this approach, using the 11 SPDR sector ETFs, in this blog on a weekly basis and track the results.

I am not planning to disclose all the ins and outs of the methodology at this point in time, as this may lead to an investable product at some stage. But the basis lies in combining various weekly and daily RRG data points into one metric and create a ranking for the 11 sectors which allows me to determine the “best five sectors.”

Going forward I will publish this list on a weekly basis and track the performance of a portfolio that consists of the best 5 sectors each at a 20% weight.

In the first week of 2025 this is the portfolio we start with:

  1. XLY
  2. XLC
  3. XLF
  4. XLK
  5. XLI

Weekly RRG

Daily RRG

Price Charts

Consumer Discretionary

Consumer Discretionary is holding up well after the upward break. The area around 210 should act as support in case of a decline.

Relative strength continues strongly.

Communication Services

Communication Services is testing the former rising resistance line as support, while relative strength broke out of its trading range and seems to be moving higher.

Financials

The rhythm of higher highs and higher lows on the price chart remains intact. Relative strength is now testing the upper boundary of the former trading range as support.

Technology

Technology continues to struggle with overhead resistance around the 240 area, but there is no significant drop in prices as seen in other sectors. Relative strength remains within the boundaries of its trading range.

Industrials

Industrials is testing the rising support line; as long as this holds, things are still okay. Looking at relative strength, it is clear why this is the fifth sector. A small double top has completed, and some relative weakness seems to be lying ahead.

#StayAlert and have a great weekend, –Julius


0
FacebookTwitterGoogle +Pinterest
previous post
Stock Market Ends the Week Strong: Could It Spark a Bullish January?
next post
Strongest Top 3 S&P 500 Stocks: Will They Lead the Pack in 2025?

Related Posts

The Stock Market is Bracing for Earnings IMPACT!

July 23, 2024

Stock Market Regains Bullish Edge: Can Geopolitical Tensions...

September 28, 2024

Small-Caps Get on Board!

October 12, 2024

Market Movers in Action: How to Identify High-Probability...

March 7, 2025

MEM TV: This Stealth AI Stock is Ready...

May 11, 2024

Failed Bearish Patterns are Bullish for S&P 500!

May 30, 2024

Stock Market Makes Spectacular Run, and It’s Not...

July 13, 2024

Communications Trying to Prop Up Equity “Go” Trend

December 17, 2024

DP Trading Room: Tariffs Narrowing, Sparks Market Rally

March 25, 2025

Is the Correction Over? Or Are We Still...

March 27, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


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

    Recent

    • How I Find Up-trending Stocks Every Week (Step-by-Step Scan Tutorial)

      June 4, 2025
    • S&P 500 Bullish Patterns: Are Higher Highs Ahead?

      June 4, 2025
    • White House stands by tax bill after Musk calls it a ‘disgusting abomination’

      June 4, 2025
    • South Korea flips left in presidential race; Lee secures victory after conservative opponent concedes

      June 4, 2025
    • Trump and Melania to headline power-player packed Kennedy Center opening night

      June 4, 2025

    Categories

    • Business (964)
    • Investing (2,310)
    • Politics (2,863)
    • Stocks (1,051)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.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.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved