Money Is Leaving The Mag Seven. The Rotation Is Visible.

Julius de Kempenaer created Relative Rotation Graphs, which put an entire universe of sectors in one picture, and he joins Chris Vecchio on the day breadth turned. Equal weight is starting to outperform cap weight, and money looks to be moving out of the megacaps into the broader market. He also tells the origin story, which is better than the tool. A sell side analyst tracking eighteen European sectors, an email saying the system was late at the dotcom top, and an accident with a scatter plot in Excel that ended up on Bloomberg terminals. His views are his own. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 0:00 A special edition after Nvidia 0:55 Why relative strength matters 2:02 The only tool that helps 2:44 What a rotation graph shows 3:33 Trends, not performance itself 4:16 Why raw numbers do not compare 5:17 Normalising across a universe 6:44 The dotcom top and an email 7:29 Adding momentum as early warning 8:12 Two lines on a scatter plot 9:12 Why the story matters for you 10:36 Bringing it to today 11:41 Where the sectors sit now 12:30 Equal weight versus cap weight 13:41 What healthy breadth looks like 15:31 Where to find his work #tastylive #sectorrotation #relativestrength #rrg #marketbreadth #stockcharts #technicalanalysis #magseven #trading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.