Welcome to this week’s edition of The Microcap Minute Global: US Markets, in a Microcap Minute. Every edition, we first look at the Sector RRG Charts, then shortlist companies from the sectors we like, before looking at the fundamentals of each of them.

Before I begin, a special mention to Mr Julius de Kempenaer, the creator of Relative Rotation Graphs (RRGs). Developed in 2004 to 2005, RRGs provided a remarkably intuitive way to visualise relative strength and momentum across groups of securities and, importantly, how those relationships change over time. The methodology first appeared on Bloomberg Professional Services in 2011 and was later introduced on StockCharts. Much of the framework I use in my RRG Analysis is what I have learnt from his public works.

Also, a special mention to Mr Kris Gunnars, Founder and CEO of StockAnalysis.com. Without his support, the Microcap Minute Global would not have become a reality.

Quick Heads up: Tables and charts are high resolution. Zoom to enlarge.

So, let’s begin.

1. THE US SECTOR MAP

Every week I read a Relative Rotation Graph, using charts courtesy of StockCharts.com, of the eleven US sector funds against the S&P 500. On every ticker I look for a long tail. Trajectory matters more than position, so I favour names moving north east, in Leading or Improving.

Chart courtesy of StockCharts.com

One sector came up this week: Industrials.

Data courtesy StockAnalysis.com

2. THE INDUSTRY FUNDS

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And that is all, folks. I will be back next issue.

Rgds

Ayush Agrawal

The Microcap Minute

Not advice. This is impersonal commentary published to a general audience, not personalised advice, and no reader is a client. Nothing here is a recommendation to buy, sell or hold any security, and there are no ratings, price targets or forecasts. It covers only securities listed on non-Indian exchanges. Full disclaimer, terms and privacy policy: themicrocapinvestor.github.io/MM-Policies

Positions. The author does not hold any positions in the above companies at the time of writing. No position is opened or closed in a named company within 72 hours either side of publication. The author accepts no payment from any company covered, from any promoter, or from any investor relations firm.

Sources. Relative Rotation Graph and RRG are registered trademarks of RRG Research, used with permission. Charts are reproduced from StockCharts.com under their reprint permission policy. Every figure comes from StockAnalysis.com, whose affiliate programme the publisher participates in and may earn a commission from links in this issue, at no cost to the reader. Neither source has reviewed or endorsed the companies named here.