RRG Charts

July 2017

RRG Charts

SPY returning to leading quadrant on Relative Rotation Graph!

by Julius de Kempenaer

The above Relative Rotation Graph holds some ETFs representing various asset classes and compares the against VBINX, a balanced index fund that holds 60% equities and 40% bonds. The most striking observation is the fact that there is only one asset class on the right-hand side of the plot AND it is returning into the leading quadrant after rotating through weakening Despite all the talk about an over stretched market, a bull market on its last legs, etc. etc. the winner is .. <drum roll> SPY!   Read More 

RRG Charts

What's going on in Materials? (XLB)

by Julius de Kempenaer

The Relative Rotation Graph above holds the constituents of the Materials sector (XLB). The picture shows a fairly evenly distributed pattern with no real stocks standing out, maybe with the exception of MOS as it has the longest tail of all stocks on the graph while being at the lowest JdK RS-Ratio reading. In my sector analysis in the previous blog, Materials and Financials were the only two sectors inside the improving quadrant. In that article, I focussed on XLF because of its long tail. In this post, I want to take a better look Read More 

RRG Charts

Strong (relative) momentum based rotations among S&P 500 sectors, powerful tail for XLF

by Julius de Kempenaer

The almost vertical tails on the above Relative Rotation Graph for US sectors indicates a very clear (relative) momentum rotation, sending some sectors from North to South and vice versa. The two most obvious tails on the RRG are for XLE, far away on the left while sharply hooking upward, and XLF which has the longest tail in the universe at the moment, indicating that a strong (momentum) move/rotation is underway. Summary Vertical tails on RRG indicate strong (relative) momentum based moves XLK and XLE wide Read More