RRG Charts

June 2016

RRG Charts

BrExit did not stop VZ from breaking to new highs

by Julius de Kempenaer

When you look at the Relative Rotation Graph (below) holding the members of the Dow Jones Industrials index without knowing what date the snapshot was taken you would not be able to tell that a major historical event had just happened. Obviously, I am talking about the surprising outcome of the Brexit referendum last Thursday and the market's response to that result on Friday. Thousands of words have been typed, scores of analysis reports have been published about the "as if and when" of both possible outcomes. And the markets. they just continue their rotational behavior Read More 

RRG Charts

How to show "currency rotation" on a Relative Rotation Graph.

by Julius de Kempenaer

Currencies or Forex are a strange beast in financial markets. The FX market is the biggest in the world with trillions of dollars (worth) traded around the clock but no central marketplace. There is no such thing as the 'New York Currency Exchange' or the 'European Currency Exchange'. If you trade in FX, you always trade 'over the counter' with your bank or a broker, etc. It is very well possible that at the exact same time someone else trades the same currency through another bank at a different price Because of the massiveness of the market and the Read More 

RRG Charts

Commodities (DJP) on the move?

by Julius de Kempenaer

The rotational pattern of the various asset classes on a Relative Rotation Graphs is showing interesting patterns at the moment. The RRG below holds a number of ETFs that cover Equities, Government Bonds, Corporate Bonds, High Yield Bonds, Real-Estate and Commodities. The benchmark is VBINX, the Vanguard Balanced Index Fund which consists of 60% Equities and 40% Bonds. Summary Commodities likely to push higher in coming weeks Real Estate going through (small) correction but remains strong(est) asset class (Government) Read More