RRG Charts

August 2015

RRG Charts

Ok, SPY is falling .... now what ?

by Julius de Kempenaer

Wow, there's a lot going on in the markets and some big shifts seem to be under way in asset class rotation as well as in (international) equity markets rotation. Relative Rotation Graphs may help you get a handle to put all this movement into (relative) perspective. Let's start with a look at the rotation of various asset classes against a balanced portfolio (VBINX, Vanguard Balanced Index Fund) So you thought equities made a big move ? In order to put things into perspective check out the length of the trails for SPY and DJP for Read More 

RRG Charts

Dissecting the Consumer Staples sector via XLP

by Julius de Kempenaer

The top-level Relative Rotation Graph holding the nine S&P sectors clearly shows you which sector rotation is in play at the moment. If I look at the rotation of the various sectors on this RRG chart, XLP, the Consumer Staples Sector, is catching my eye. The sector is in the improving quadrant heading higher on both the JdK RS-Ratio and the JdK RS-Momentum axes and very close to crossing over into the leading quadrant. Definitely worth a further study of XLP itself as well as the individual stocks that make up this sector to see if there are any outliers or interesting possibilities Read More 

RRG Charts

How to Set Up RRGs Holding Sector Constituents

by Julius de Kempenaer

One of the subjects covered in this blog on a regular basis is the relative rotation (sector rotation) in the US equity market. The data, ticker symbols, that I use for the analysis are the nine ETFs from the SPDRS family, provided by State Street Global advisors. SPDR actually stands for Standard & Poor's Depository Receipts, which I'm sure you already knew. All these ETFs together encompass all 500 stocks inside the S&P 500 index (or the SPY ETF). A typical relative rotation graph of this universe looks like this. The RRG above Read More