RRG Charts

January 2016

RRG Charts

Price target for SPY at $ 165 ?

by Julius de Kempenaer

Big bounces all over the place, not just in equities. In this article I want to take a look at relative rotation at an asset class level, of course, using an RRG lens. The Relative Rotation Graph below shows the relative trends in play for several asset classes over the past six weeks. Summary Commodities (DJP) and High Yield (HYG) stand out on the RRG DJP fulfills price target. End of the down-move? Equities (SPY) heading lower on JdK RS-Momentum axis while Government bonds (IEF), IG Corporate bonds (LQD) and Real Estate (VNQ) are pushing higher into the leading Read More 

RRG Charts

Picking stocks inside XLP

by Julius de Kempenaer

The sector rotation inside the S&P 500 index is getting more and more pronounced. The Relative Rotation Graph holding the sector ETFs that make up the entire S&P 500 index clearly shows the recent improvement for Health Care (XLV), Utilities (XLU) and Consumer Staples (XLP). I have been looking at the developments in the Consumer Staples sector in the past two blogs as well and especially the relationship against its counterpart Consumer Discretionary (XLY). This XLP/XLY ratio has now really shifted in favor of XLP with XLP rotating back up into the leading quadrant while Read More 

RRG Charts

Price targets for SPY based on the relative strength of XLP.

by Julius de Kempenaer

Wow, what a start of the new year! Increased volatility sounds like an understatement. In my previous blog on sector rotation in the US equity market, the Consumer Staples sector (XLP) popped up as potentially interesting, especially in relation to its counterpart consumer discretionary. Since the start of the new year, it looks as if this improved sector rotation is beginning to materialize for XLP in general and more specifically against Consumer Discretionary (XLY). In this post, I want to build on the further improvement of XLP and use developments on the XLP price chart and the Read More