RRG Charts

September 2014

RRG Charts

Single stock rotation within $INDU

by Julius de Kempenaer

In previous posts I have been looking at asset classes, sectors, countries etc. In this post I am going to throw the 30 constituents of the Dow Jones Industrials index ($INDU) at a Relative Rotation Graph and also look for confirmation between weekly and daily time-frames. When you open up the RRG-chart page you will find that the members of the Dow Industrials index are present as a predefined group in the <groups> drop-down box. If we bring up that RRG we will be confronted with a bit of a messy picture. This is because of the default 10 period trail in combination with 30 Read More 

RRG Charts

International equity market rotation on Relative Rotation Graphs(tm)

by Julius de Kempenaer

In a previous article we looked at using Relative Rotation Graphs for analyzing asset class rotation. One of the main caveats that was pointed out in that blog was to be very careful on what ticker symbols to use to construct the RRG with. Especially the mixture of yield series for fixed income instruments versus price series for equity instruments for example. In this article I want to take a look at international equity markets. The catch here is that "international" markets are usually quoted and traded in "international" , non-USD, currencies.  The additional hurdle, when we Read More 

RRG Charts

Strong relative rotation for Health Care and Technology

by Julius de Kempenaer

The Relative Rotation Graph of the nine sector ETFs against the S&P 500 (SPY) is showing some clear and distinct rotations at the moment. Especially the right hand side of the plot where we find the sectors that are (still) in relative up-trends against the broader S&P 500 is fairly outspoken.   Technology now leading Health care If we kick-off in the top right-hand corner, the leading quadrant, we find XLV (Health Care) and XLK (Technology) both still heading higher on the JdK RS-Ratio axis and still at decent relative momentum values (JdK Read More 

RRG Charts

Using RRG charts for Asset Allocation

by Julius de Kempenaer

One of the comments on my last article (daily data now available for RRG charts) mentioned using RRG charts in relation to monitoring different asset classes, which just happened to be the subject of this article that I was already working on when the comment came in. "Can RRG charts be used for monitoring / analyzing asset allocation?" The answer to this question is a full blown YES! However, one thing that you have to keep in mind setting them up! Apples and apples, oranges and oranges By far the most important issue to Read More