Sector rotation doesn’t always show up clearly on the index chart—it often reveals itself underneath the surface. In the 83rd episode of the Market Misbehavior podcast, I’m joined by Julius de Kempenaer, founder of RRG Research and creator of the Relative Rotation Graph, to discuss the late-2025 change in market character and what relative strength analysis is signaling as markets hover near all-time highs. Recorded 12/15/25.

Topics covered include:
📈 how Julius uses Relative Rotation Graphs to identify sector rotation in real time
📈 why fading tech momentum alongside improving defensive sectors can be a cautionary signal
📈 how to read RRG “heading” and momentum shifts
📈 how to combine RRGs with traditional price charts to build a disciplined, top-down workflow from asset allocation to sector selection.

Key takeaway: Relative strength is most powerful when used as context, not in isolation. RRGs can highlight where leadership is improving or deteriorating, but confirmation from price and trend remains essential. When market leadership narrows or rotates toward defense, patience and discipline matter more than prediction.

Julius' blog on StockCharts: https://articles.stockcharts.com/author/julius-de-kempenaer/
Julius' videos on StockChartsTV: https://youtube.com/playlist?list=PLyNJu-3PikrQwgy7LU70BXWzU2hKOYUtM
Learn more about Julius and his work: http://www.relativerotationgraphs.com/

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The content in this presentation should not be considered as a recommendation to buy or sell any security. All information is intended for educational purposes only and in no way should be considered as investment advice.