RRG Charts

April 2016

RRG Charts

Trouble in Tech but opportunities in Energy

by Julius de Kempenaer

This Relative Rotation Graph holds the constituents of the Dow Jones Industrials Average ($INDU) and shows the position and movement of their relative trends against $INDU and each other. In this article, I will focus on the movements in the technology- and the energy sectors and briefly touch on financials. Summary Financials showing weakest relative trend on a sector level AXP running into resistance making further rise difficult Other financials (GS, JPM, V, TRV) showing similar patterns. Technology sector ETF Read More 

RRG Charts

Strong rotation for commodities, SPY and IEF (ratio) under threat

by Julius de Kempenaer

The Relative Rotation Graph below shows the rotational picture for a number of asset classes, based on ETFs, against the Vanguard Balanced index fund on a weekly basis. For some of these asset classes, the equivalent picture on a daily basis is confirming but for others it is contrarian. Or maybe I should say, confusing. Summary Commodities confirming turnaround after long downtrend Short-term pattern in VNQ suggests longer-term weakness at hand SPY:IEF ratio at proving grounds Read More 

RRG Charts

Bottom fishing in the Energy sector..

by Julius de Kempenaer

The energy sector has been a very poor performing sector for a very long time. However, on the Relative Rotation Graph for US sectors (ETFs), XLE is now way up inside the improving quadrant and heading right towards leading. This makes it a good sector to dissect on an individual equity level to see if there are any good buying candidates available in case this sector rotation continues in its current direction. To do this, I will work my way through the Relative Rotation Graph holding the constituents of XLE. Summary Read More