RRG Charts

April 2017

RRG Charts

No asset class in leading quadrant on RRG but SPY still strongest!

by Julius de Kempenaer

The Relative Rotation Graph for asset classes shows that not a single category is inside the leading quadrant at the moment and only one asset class, equities (SPY), is on the right-hand side of the plot. The quick take from this reading is that only SPY, asset class equities, is in a relative uptrend against VBINX but losing momentum, hence positioned inside the weakening quadrant. The good news is that the distance from its current position to the 100-level on the Jdk RS-Ratio axis is still big enough to possible turn back up into the leading quadrant without crossing over into Read More 

RRG Charts

Utilities (XLU) moving into leading quadrant, what are the strongest (and the weakest) stocks for this sector?

by Julius de Kempenaer

The Relative Rotation Graph above holds the stocks that, together, make up the Utilities sector index (XLU). The keen observer may notice that there is one stock, NRG, positioned in the "gutter" of the chart. This is done on purpose as NRG is so far out to the right of the graph that it compresses all other stocks if I would include it, properly positioned, on the RRG. I will have a look at NRG further down in this post. The stocks inside the weakening and the lagging quadrant can fairly easily be identified. Same for Read More 

RRG Charts

RRG suggests favoring Europe over US and Hong Kong over Japan

by Julius de Kempenaer

The Relative Rotation Graph above holds some the major world market indices and compares them to the FTSE all world index ($FAW) as the benchmark. Straight from the RRG above we can make a few interesting observations.  Starting in the lagging quadrant, we find continued weakness for China ($FTX) and Canada ($SPTSE), with China doing slightly better than Canada as it is already picking up a bit of relative momentum. Both markets are still heading lower on the JdK RS-Ratio scale. In the weakening quadrant, the one that stands out is the Japanese NIKKEI Read More