RRG Charts

March 2016

RRG Charts

Bad Health (care) for XLV

by Julius de Kempenaer

The Relative Rotation Graph for US sectors shows us the relative movement of the various sectors against the benchmark (SPY) and against each other and in this way visualizes the current sector rotation in the US equity market. The RRG below shows the ETFs covering the major sectors of the S&P 500 index against the ETF (SPY) that tracks this benchmark. Summary Loss of relative momentum in XLU expected to be temporary before resuming uptrend vs. SPY XLP continues higher inside rising channel on the price chart. Relative trend Read More 

RRG Charts

Weak relative rotation for PFE, CAT expected to keep on truckin'

by Julius de Kempenaer

The Relative Rotation Graph above holds the 30 stocks that make up the Dow Jones Industrials Index ($INDU). The rotational patterns of the individual stocks vary widely. The RRG shows you where the opportunities are but, maybe even more important, also shows you the threats. Summary VZ leads the (relative) way but looks set for a corrective rotation WMT, PG and MCD are showing patterns similar to VZ and seem poised for some (relative) corrections AXP is the weakest stock based on JdK RS-Ratio but looks Read More 

RRG Charts

Something cooking in commodities?

by Julius de Kempenaer

We live in interesting times or maybe I should say: We live in confusing times. Because, really, markets are throwing some serious curve balls here and there. It is time to look at some asset class rotations again. The Relative Rotation Graph shows the rotation of a number of asset classes against VBINX (Vanguard Balanced Index Fund) which is the benchmark that I use for this universe. The RRG uses weekly data which means that it is looking to detect a bit longer term trends in relative rotation, and it will take away the noise that can clutter the day-to-day movements in financial Read More