Don't Jump in Front of the Freight Train! | 2026 Tech Dominance & RRGs with Julius de Kempenaer

In this episode of the Market Misbehavior podcast, Dave is joined by Julius de Kempenaer, Founder of RRG Research and creator of the Relative Rotation Graph. Recorded September 22nd 2026.

Celebrating the 20th anniversary of the RRG's early development, Julius shares masterclass-level techniques for reading rotation, emphasizing why the 0 to 90-degree "northeast heading" is the ultimate technical sweet spot. We dig into why horrible market breadth doesn't matter when the mega-cap tech "freight train" (MAG7 and XLK) makes up 50% of the index and is breaking out to new highs, making shorting a catastrophic mistake. The conversation also explores advanced RRG tactics like swapping benchmarks to find hidden alpha in weak sectors, mapping absolute returns using the $ONE benchmark, and identifying the stealth rotation of defensive sectors that signals a true market warning.

📈 Topics Covered
• Celebrating 20 years of the Relative Rotation Graph (RRG): From early scatter plots at Fidelity to a staple visualization on global financial terminals
• Mastering the RRG "heading": Why a 0 to 90-degree northeast trajectory is the most powerful indicator of relative strength and momentum
• The "freight train" market: Why horrible underlying breadth is completely overridden when Technology and the MAG7 are pushing toward all-time highs
• Advanced benchmark swapping: How institutional managers change the center point to SPY or $ONE to find hidden outperforming stocks inside lagging sectors
• The ultimate market warning sign: Watching defensive sectors (Utilities, Staples, Healthcare) quietly push into the "Improving" quadrant while offensive sectors roll over
• Reconciling multiple timeframes: How to read a sector like Energy that is firmly "Leading" on the weekly RRG but taking a negative-heading breather on the daily chart
• Why technical analysts have the luxury of reacting to the market's reality rather than trying to predict the exact peak of a momentum cycle

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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.