RRG Charts

August 2016

RRG Charts

Bonds under pressure and SPY no longer beating international equity markets

by Julius de Kempenaer

On the Relative Rotation Graph below, the rotation of various asset classes is shown against the Vanguard Balanced Index Fund (VBINX). The single one tail that immediately stands out is the one of DJP (Commodities). Then there are IEF (Government bonds) on the far left inside the lagging quadrant and VNQ to the far right, on the verge of crossing from leading into weakening. Inside the blue shaded area are LQD (Corporate Bonds), HYG (High Yield Bonds), and SPY (Equities). All three on a very short tail and no clear rotational path with SPY and HYG still on the positive side of the Read More 

RRG Charts

Facebook (FB) not able to keep up with XLK

by Julius de Kempenaer

The technology sector, as represented by XLK, started to show some positive sector rotation over the past month and last week managed to crossover from the improving quadrant to the leading quadrant on the weekly Relative Rotation Graph. Reason enough to check out the relative technical conditions for the stocks that make up XLK as shown on the Relative Rotation Graph below. Summary Positive sector rotation for XLK Mature relative uptrends for EBAY, SYMC, and NVDA NVDA probably too risky at Read More 

RRG Charts

Strong rotation for Technology but SPY is still lacking fuel

by Julius de Kempenaer

To surrender or not to surrender? That's the question! After a nice run up in the S&P 500, I started to worry about its ability to push higher when resistance levels coming off previous highs started to act up. At, more or less, the same time, sector rotation of US sectors began to show a pattern favoring more defensive sectors in the lead. Usually not a very good sign for the general market. This started back in April-May, and the pattern of sectors labeled as defensive leading the market from a relative perspective is still in play. The Relative Rotation Graph Read More 

RRG Charts

Tech stocks starting to look cool again, Financials not so much... yet!

by Julius de Kempenaer

Over the past few weeks, I have argued in some my posts that the state of sector rotation would not back a strong rise for the general market. The "defensive" sectors were simply too strong compared to the, more, cyclical sectors which are usually needed to push a market higher.  At the moment, I still believe this argument holds up although technology, one of the sectors that we need for a broader push higher, seems to be picking up again, at least the tech stocks that are in the Dow Jones Industrials index. The Relative Rotation Graph below holds the components of $INDU and Read More