RRG Charts

June 2015

RRG Charts

If you can't stand the heat, get out of the (Asian) kitchen!

by Julius de Kempenaer

International stock markets continue to show us big rotations on the Relative Rotation Graph. The picture below holds a number of international stock market indices in comparison with the FTSE all world index ($FAW). click the chart for the live RRG Initial observations Following the headline of my previous blog on international equity markets "Hong Kong on track towards all-time-high" I want to see how that market has been doing over the past few weeks and if that headline still stands. On the RRG above there is a Read More 

RRG Charts

Using RRG on size indices

by Julius de Kempenaer

In last Tuesday’s (6/15) webinar with Arthur Hill I presented a Relative Rotation Graph based on size indices and how this can be used to focus attention to a specific part of the broader market. You can re-play the recording of this webinar here. One of the most standard uses of RRG is plotting the S&P economic sectors (based on indices or ETFs) in comparison with the S&P 500 index. This is limiting our view to large-cap stocks only. And although large actually means LARGE, the S&P 500 which represents US large cap stocks makes up roughly 88% of the total market (S&P Read More 

RRG Charts

Financials and Technology .... really ?

by Julius de Kempenaer

The Relative Rotation Graph of US sectors (10 ETFs) is showing some interesting sector rotation going on at the moment. Initial observations Glancing over the RRG above continues to show Energy (XLE) and Utilities (XLU) "standing out", as in "far away from the mean", like they have been doing for quite a while now. Both sectors were covered in-depth in the previous RRG-blog on US sector-rotation so I will only do a quick update on those two today. XLU aside there are two more sectors showing up in the lagging quadrant. These Read More 

RRG Charts

Equities likely to out-perform (government) bonds.

by Julius de Kempenaer

On the Relative Rotation Graph holding a number of Asset Class ETFs in comparison to the Vanguard Balanced Index fund, the opposite moves of commodities and REITs continue to attract attention. Initial observations The opposite moves in Commodities (DJP), heading higher on the JdK RS-Ratio axis at positive relative momentum, and REITs (VNQ), heading lower on the RS-Ratio axis at negative momentum, are coming close to crossing over and turning their relative relationship in favor of commodities. The Read More