RRG Charts

December 2016

RRG Charts

Tech stocks losing IT

by Julius de Kempenaer

From July to November of this year Tech stocks have dominated the performance of the Dow Jones Industrials Index ($INDU) but then came November! The Relative Rotation Graph of all DJ Industrials stocks below shows the rotational pattern of all $INDU members with a three-week tail.  The recent weakness for Technology and the subsequent takeover of sector rotation towards Financials is clearly visible on the RRG. Summary Sector rotation from Technology to Financials clearly visible on RRG Read More 

RRG Charts

What the ....happened in the week ending 11 November?

by Julius de Kempenaer

My last article on asset allocation was posted just before election day (11/8), and I was not happy about the rotation for equities against bonds What a difference a week makes. The relative rotation graph above shows the rotation of various asset classes, represented by ETFs, over the past 13 weeks. The observations highlighted in the orange circles are those of the week ending 11 November. An unusually sharp turn reversed some major relative trends that were underway until then.   Summary Read More 

RRG Charts

Put some focus on the materials sector (XLB) but be aware of which stocks to avoid.

by Julius de Kempenaer

Last weeks RRG blog looked at the sector ETFs that make up the S&P 500 index. Materials, the XLB ETF, came out as one of the, more promising, sectors on its way to the leading quadrant. In this post, I will look into the individual stocks that make up that materials sector. Summary High number of stocks inside leading quadrant indicate broad participation FCX, NUE, and FMC showing strong rotation into leading quadrant, backed by long tails CF, strong but at a flat tail Read More 

RRG Charts

Very clear rotational picture in US sectors! Watching XLE, XLI and XLB for opportunities

by Julius de Kempenaer

The Relative Rotation Graph above shows the rotational picture for US sectors. For a change the rotations are well defined and clearly visible, which immediately raises the question; " For how long?" I will try to answer the question, but no-one ever said it was easy.. ;) Summary Well defined sector rotation at the moment Avoid Utilities, Staples and Health Care as they push deeper into the lagging quadrant Watch Technology as it rotates inside the weakening quadrant Financials are Read More