RRG Charts

September 2017

RRG Charts

Pair trade opportunity in XLV/XLK and potentially strong (rare) rotational pattern for XLI

by Julius de Kempenaer

The Relative Rotation Graph above holds the ten sector SPDR ETFs that make up the complete S&P 500 index (SPY).  At the moment the positioning of the various sectors and their rotational patterns are relatively evenly spread over the RRG canvas except for XLE which is far away from the center of the chart inside the improving quadrant. The Utilities (XLU) sector, which I looked at more in depth in my previous blog, continues to do well and push further into the leading quadrant. And finally, Technology (XLK) and Health Care Read More 

RRG Charts

"Boring" Utilities moving up to main stage

by Julius de Kempenaer

Bringing up the Relative Rotation Graph that holds all members of the Utilities sector (XLU) gives the picture above. With NRG all the way up in the top-right corner of the leading quadrant and SCG in the lower left-hand corner of the lagging quadrant, the remaining stocks in the sector are getting a bit squeezed around the center of the RRG. It means that we definitely have to inspect those two stocks on the outside of the universe a bit closer and then zoom in on the stocks around the benchmark to find out what is going on there. Utilities are Read More