RRG Charts

February 2015

RRG Charts

High ENERGY move is suspect

by Julius de Kempenaer

On the Relative Rotation Graph showing the sector rotation in the nine S&P sector ETFs there is one that really stands out. But is it good or is it bad? XLE, the Energy select sector SPDR is showing up in the top-left 'improving' quadrant with a long, almost vertical, trail. The length of the trail and the position of this sector far away from the other sectors as well as the benchmark makes the Energy sector a prime candidate for further inspection. When looking at Relative Rotation Graphs the position on the JdK RS-Ratio axis is most Read More 

RRG Charts

Asset Class rotation remains close to home

by Julius de Kempenaer

The rotation of relative trends close to "home" over the past 3-4 weeks. HOME in this context is VBINX (Vanguard Balanced Index Fund) which represents a balanced investment portfolio holding approximately 60% in Equities and 40% in bonds. The Relative Rotation Graph below shows the relative trends for a number of asset classes vis-a-vis VBINX. The two asset classes that stand out on this RRG, and have been for a while, are VNQ (Vanguard REIT VIPERs) and DJP (iPath Bloomberg Commodity Index Total Return ETN). The first one in the top-right corner and Read More 

RRG Charts

Home run for HD?

by Julius de Kempenaer

The Relative Rotation Graph of the 30 Dow stocks shows nicely balanced rotations. All 30 names are more or less evenly spread around on the RRG chart. This is often seen on Relative Rotation Graphs holding a closed universe of securities without one or two mega-caps distorting the picture. I have highlighted only one stock (HD) in the RRG above to emphasize the added value of the animation functions. As 30 securities on a RRG chart is quite crowded I like to shorten the trail to 3-5 periods to be able to better see what's going on and, quite frankly, simple being Read More 

RRG Charts

Europe is taking over

by Julius de Kempenaer

The Relative Rotation Graph below holds a number of international, country and regional, stock indices. In order to get a bit more clarity I have zoomed in to the central area that holds the most observations. You will see one observation "off the grid" in the top right-hand corner, this is China. And you will find one observation far in the top-left corner, just peeking back on the plot again, which is Portugal. Let's have a quick look at those two charts to get them out of the way and then zoom in on the remaining markets on the RRG. China ($FTX) Read More