RRG Charts

January 2017

RRG Charts

RRG shows money flowing into commodities!

by Julius de Kempenaer

The Relative Rotation Graph holding a number of asset class ETFs is showing a strong push of commodities (DJP) into the leading quadrant. Together with Real Estate (VNQ), these two asset classes are showing the most powerful headings in combination with the longest tails. They deserve a further investigation. Summary All tails, except one, showing a positive heading VNQ picking up relative strength again Equity/Bond ratio expected to pull back before further advance Long tail Read More 

RRG Charts

Is JNJ the pink elephant in the XLV room?

by Julius de Kempenaer

The Relative Rotation Graph above holds the constituents of the XLV (Health Care) ETF. In this post, I want to follow up on my previous article which pointed at the potential rotation from Financials into Health Care and take a look at the relative rotation of individual stocks that make up the sector, against XLV as the benchmark. Over the past week, the relationship improved a little bit for Health Care, but it still is a somewhat "gutsy" view. Not yet a trend that is well underway, so beware. Summary Read More 

RRG Charts

Rotation from Financials into Health care? Two sectors at extremes.

by Julius de Kempenaer

The Relative Rotation Graph below holds the sector ETFs that make up the S&P 500 universe and uses the S&P 500 index ETF (SPY) as its benchmark in the center of the graph. Four rotational patterns, two pairs, capture my attention when I look at this chart. Summary Financials and Health Care at opposite extremes Relative momentum on both sectors (XLF & XLV) rolling over creates opportunity Materials and Technology rotating in opposite directions and about to turn relative trend around Read More