RRG Charts

March 2015

RRG Charts

XLV remains a very "healthy" sector

by Julius de Kempenaer

In the previous article on US sectors I mentioned Energy (XLE) and Consumer Discretionary (XLY) as sectors to watch for sector-rotation. XLE as being suspect and at risk for more or renewed under-performance and XLY as pushing further into the leading quadrant and thus expanding its out-performance. Looking at the current Relative Rotation Graphs for US sector-rotation below it looks like we have a third sector that is under-going a strong rotation.  This third sector is XLU (Utilities). Over the past 5 weeks XLU showed a strong downward Read More 

RRG Charts

Commodities still in trouble

by Julius de Kempenaer

The Relative Rotation Graph holding a number of ETFs tracking various asset classes continues to be dominated, or distorted if you wish, by the two asset classes that are moving far away from the center for quite some time already. Regular readers of this blog will recognize VNQ (Vanguard REIT Vipers) on the right-hand side and DJP (iPath Bloomberg Commodity Index Total Return ETN) on the left-hand side. A very quick and dirty conclusion could be to remain Long, or overweight, Real-Estate and Short, or underweight, Commodities. but let's look a bit more in-depth to what's Read More 

RRG Charts

Touch and go for Boeing

by Julius de Kempenaer

Last Tuesday I joined Arthur Hill's market message webinar which was great fun. Not only because the (stock selection) approach we are taking makes total sense, at least that is what I tend to believe. But also because it gives Art and myself a good excuse to meet for coffee and lunch somewhere between Mechelen in Belgium, where Arthur lives, and Amsterdam in the Netherlands where I am. We need to prepare ourselves properly don't we? If you could not make it to watch the webinar live you can watch the recording here. Even if the views will lose their actuality, the approach we are Read More 

RRG Charts

It's lonely for Europe in the leading quadrant...

by Julius de Kempenaer

In previous blogs on international (equity) markets I used to plot all markets on one RRG canvas which makes a pretty crowded picture. As most individual ticker symbols are from European markets which are much more fragmented than other global regions I have grouped them together by using one ticker ($STOXX600). This will show the movement for European markets as a whole and I will investigate the European universe separately. This makes the Relative Rotation Graph easier to read and secondly shows a good example of how you can use RRGs in a top-down approach! The first RRG below holds Read More