Relative Rotation Graph: sector rotation
Where each sector sits relative to its benchmark — crypto sectors vs Bitcoin, US stock sectors vs the S&P 500 (SPY). The tail shows the path over the last bars, the arrow the latest reading.
vs BTC
Building the rotation graph…
How to read the graph
The horizontal axis (RS-Ratio) says whether a sector is trending stronger or weaker than the benchmark; the vertical axis (RS-Momentum) says whether that relative trend is speeding up or slowing down. Sectors usually travel clockwise through four quadrants:
- Leading
- Outperforming the benchmark and still gaining relative momentum.
- Weakening
- Still outperforming, but the relative momentum is fading.
- Lagging
- Underperforming the benchmark and losing further ground.
- Improving
- Still underperforming, but the relative momentum is turning up.
This is our approximation of the proprietary JdK RRG method, built from equal-weight baskets of each sector's members we hold daily history for. It describes relative trend so far; it is not a forecast, and a sector can stall or reverse in any quadrant.