RRG Charts

November 2014

RRG Charts

China (and Japan) Paying off

by Julius de Kempenaer

The Relative Rotation Graph™ below shows the relative position and movement of international equity markets against the FTSE All World index. At one glance we can immediately see which markets deserve our attention. THAT is the big advantage of RRG™ Charts. In this case it is $PSI, the Portuguese equity market inside the red shaded area in the improving quadrant, which is by far the weakest market in terms of relative strength. And on the right hand side of the plot in the leading quadrant we can see $NIKK and $FTX the Japanese and Chinese markets standing out positively. Read More 

RRG Charts

Strong Rotation for Utilities and Staples

by Julius de Kempenaer

The Relative Rotation Graph below shows the weekly rotation pattern for the nine S&P sector ETFs. The single one sector that immediately catches attention is Energy (XLE) in the bottom left-hand corner (lagging). This is by far the weakest sector on the chart. Further to the energy sector there are two more sectors inside the leading quadrant that are worth a closer look and also the only sector that is currently moving inside the improving quadrant and heading towards leading deserves some attention. Energy The position of the Read More 

RRG Charts

Still RISK ON for Asset Allocation ?

by Julius de Kempenaer

Wow! What a difference a month makes .  I had lunch with Arthur Hill yesterday in Breda (the Netherlands) which is halfway where he lives in Belgium and where I live in the Netherlands (Amsterdam). Obviously the discussion was mainly about the freaky market move we have seen in October. At one point Art nailed it with the statement: "I think that a lot of fund managers wish they had taken a holiday in October".. it would have prevented them from taking wrong decisions. The Relative Rotation Graph for asset classes clearly shows some unexpected turns. Below is the RRG holding a Read More 

RRG Charts

Boeing on final approach for landing at "lagging" runway

by Julius de Kempenaer

The Relative Rotation Graph below shows the members of the Dow Jones Industrials index with that same index acting as the benchmark. As all members of the benchmark universe are present on the plot we call this a "closed universe". Open and Closed RRG-charts On a RRG holding a closed universe we can expect to see the members more or less evenly spread out over the canvas. On a Relative Rotation Graph holding an open universe this is not necessarily the case.  Let's use the S&P 500 Energy sector as an example. This sector has been a huge Read More