What is a Relative Rotation Graph (RRG)?
An RRG is a map that compares every stock with one benchmark — here the S&P 500 — on two axes: relative strength (is it beating the market?) and the momentum of that strength (is the lead growing or shrinking?). Because both axes are normalized around 100, dozens of stocks can be read on one chart, and they tend to rotate clockwise through the four zones as their cycle matures.
What do the four zones — Leading, Weakening, Lagging, Improving — mean?
Leading means stronger than the market and still gaining. Weakening means still stronger, but the lead is shrinking — a stage where profit-taking discussions typically start. Lagging means weaker than the market and still losing ground. Improving means still weaker, but momentum has turned up — the classic early-recovery zone worth watching. None of these labels is a buy or sell signal.
Which stocks does the Rotation Report track?
A fixed list of 34 of the most widely followed US names: the mega-cap technology leaders (Apple, Microsoft, NVIDIA, Alphabet, Amazon, Meta, Tesla, Broadcom), major financials (JPMorgan, Bank of America, Visa, Mastercard, Berkshire Hathaway), healthcare (Eli Lilly, UnitedHealth, Johnson & Johnson), consumer names (Walmart, Costco, Home Depot, Coca-Cola, PepsiCo, Procter & Gamble, Disney), energy (Exxon Mobil, Chevron), software (Oracle, Salesforce), chips (AMD, Intel, Qualcomm) and popular growth names (Netflix, Uber, Palantir, Coinbase). The list is fixed in advance so the map stays comparable week to week.
How should I read the trail and the arrow next to each stock?
The trail shows the stock's positions over recent weeks, oldest to newest — where it came from. The arrow next to the ticker is its current tendency: up means the rotation is strengthening, down means it is fading, and a dash means sideways. A stock in Lagging with an up arrow is behaving very differently from one in Leading with a down arrow, even though a simple price chart might look similar.
Is the Rotation Report investment advice?
No. It is an educational visualization of a well-documented technique (Relative Rotation Graphs, developed by Julius de Kempenaer). It shows where each stock currently sits in its rotation cycle relative to the S&P 500 — not what you should buy or sell. Relative strength is not absolute return: in a falling market even Leading stocks can lose money. Always do your own research.