RRG Charts

September 2015

RRG Charts

Bonds are taking over!

by Julius de Kempenaer

The Relative Rotation Graph below shows the trends in relative strength for a number of asset classes against the Vanguard Balanced Index Fund (VBINX). The most important message sent by this chart is the opposite move of equities (SPY) versus bonds (IEF and LQD) indicating that the Equity / Bond ratio is now clearly trending lower which suggests a preference for bonds over equities. Equities - SPY Above is an updated chart of SPY taken from the previous blog on asset class rotation. At that time, the JdK RS-Ratio line was just Read More 

RRG Charts

Don't like SPY ? Utilities may have something to offer....

by Julius de Kempenaer

The chart of the S&P 500 index ($SPX) or its ETF equivalent (SPY) has popped up in almost every blog article on the site over the past few weeks/months and the vote has been almost unanimous : It's not looking good! From an absolute point of view that is When watched through an international lens the US is actually improving versus other stock markets around the world. The Relative Rotation Graph below shows the relative rotation of the sectors of the S&P 500 index ($SPX). In this article I will take a more in-depth look at the Utilities sector, including some individual Read More 

RRG Charts

Steady Staples in the leading quadrant

by Julius de Kempenaer

Despite wide swings in the US equity market the Relative Rotation Graph of sector ETFs will help you keep an eye on current sector rotation and point to favourable and less favourable sectors for the coming period.    Initial observations A quick scan of the above Relative Rotation Graph immediately reveals a few sectors that deserve some (extra) attention. Standing out most, are the two sectors in the bottom left corner, XLE and XLB. Opposite in the leading quadrant, XLU and XLP are away from the crowd and demanding a little Read More 

RRG Charts

Get a burger at MCD and help the stock stand out from the crowd

by Julius de Kempenaer

This article takes a look at the relative rotation of the members of the Dow Jones Industrials ($INDU) index.  On the relative rotation graph below all members are plotted against $INDU. I will highlight and discuss some of the charts that show up on the RRG as "worth having a look at". Initial observations The first thing that strikes when I look at the RRG above is that the center of gravity has shifted slightly to the leading quadrant. Given the very volatile and negative (initially) behavior of the stock-market in the past Read More