RRG Charts

July 2016

RRG Charts

Real Estate shines, Stocks are still good, US stocks are even better.

by Julius de Kempenaer

The Relative Rotation Graph below shows the rotation for various asset classes (through ETFs) against the Vanguard Balanced Index fund (VBINX) on a weekly basis. The picture is pretty conclusive for some asset classes but less so for others. Zooming in on the daily time-frame, usually, helps to add a bit more info and color to the weekly reading of the RRG. The RRG of international stock markets relative to the FTSE all world index also paints an interesting picture for US stocks.  Summary Commodities are ready to Read More 

RRG Charts

Utility stocks are boring .... really?

by Julius de Kempenaer

On the Relative Rotation Graph of the S&P economic sectors (GICS I), Utilities is one of the leading sectors as measured by the JdK RS-Ratio. As described in my last RRG blog on US sectors, the fact that Utility stocks and Staples are leading the current sector rotation, tells us something about the underlying strength (or weakness) of the S&P 500 itself. The jump higher last Friday did not change the defensive rotational pattern yet, so, for now, I will stick with a scenario holding serious downside risk for the stock market (i.e. $SPX). Generally, utility Read More 

RRG Charts

Staples and Utilities in the lead, what does that tell you?

by Julius de Kempenaer

Over the past few weeks markets, in general, experienced a lot of volatility and a lot of comments have are focussing on the general state and direction of the broader market indices around the world. In my last blog about US sector rotation, the conclusion was that the relative rotation of US sectors was not supportive for a rise in the S&P 500. Let's see if and how the rotational patterns have changed since then. The Relative Rotation Graph below holds the 10 (9 + Telecom) sector ETFs that make up the entire S&P 500 universe and shows the Read More