RRG Charts

October 2017

RRG Charts

Once again, strong rotation for SPY vs other asset classes on RRG

by Julius de Kempenaer

  The Relative Rotation Graph above holds six ETF that represent various asset classes. The picture gives you the big picture of what is going on at asset class level on a relative basis against VBINX which is a Vanguard balanced index fund (60% equity / 40% bonds). This one frame immediately makes crystal clear that, from a relative point of view, there is only one asset class that is outperforming the benchmark and that is equities (SPY).   Summary Watch DJP for a break above $ 25 Read More 

RRG Charts

RRG suggests sector rotation out of Real Estate (XLRE) into Industrials (XLI)

by Julius de Kempenaer

The Relative Rotation Graph for US sectors shows seven sectors clustered around the benchmark in the middle of the graph (SPY) and three of them further away. XLE is more or less detached from the rest of the universe while XLP and XLY are breaking away together and heading deeper into the lagging quadrant. Within the cluster of sectors closer to the center of the chart, Real Estate (XLRE) and Industrials (XLI) are showing interesting rotational patterns backed by long(er) tails.   Summary Read More 

RRG Charts

INTC and PFE expected to dominate relative rotation in $INDU while NKE, DIS, and TRV are lagging

by Julius de Kempenaer

Plenty of actionable rotation towards the edges of the Relative Rotation Graph above. The RRG holds the 30 members of the Dow Jones Industrials index. Scanning around the outside of the chart the following stocks draw the attention. In the weakening quadrant, MCD is at the lowest JdK RS-Momentum reading and heading lower on the JdK RS-Ratio axis, towards the lagging quadrant. Also, MSFT and UNH have just rotated into the weakening quadrant from leading. Already inside the lagging quadrant, the weakest rotations are seen for DIS, NKE, TRV, and UTX.  Close to the Read More