Analysis of key markets.
➕ Financials ➕ Industrials ➖ Resources (in ranking order)
If there is a negative correlation between markets, it means one of the markets’ price will go up, while the other will likely drop. When you trade
each of these assets, you might succeed in any market, by avoiding the steep
climbs and large dips expected with a single market type. In the same way, positively correlated markets could enable you to profit from both markets if
the price moves in the direction that you speculate.
Relative Rotation Graphs, commonly referred to as RRGs, are a unique visualization tool for relative strength analysis.
Some thoughts that you need to know to start the week.
This analysis would allow you to see when a share is overbought (expensive or higher scorer) or oversold (cheap or lower score) and ready to revert to the mean.