RRG Charts

December 2017

RRG Charts

Relative Rotation Graphs suggest to stick with equities (SPY) while keeping an eye on commodities (DJP) going into 2018

by Julius de Kempenaer

As 2017 draws to an end, the Relative Rotation Graph for asset classes is sending a very clear message! Equities are leading the way into 2018! The RRG above shows some ETFs representing various asset classes and uses VBINX, a balanced index fund, as the benchmark. With only SPY, representing the asset class equities, inside the leading quadrant and ALL others inside the lagging quadrant, the message could not be more clear. Summary All fixed income related asset classes are inside the lagging quadrant With only Read More 

RRG Charts

RRG shows two sectors continuing to carry SPY higher and three sectors to avoid going into the new year

by Julius de Kempenaer

The Relative Rotation Graph for US sectors is showing us three sectors to avoid but also two which may offer good potential. Inside the leading quadrant, we find XLK and XLF still being the strongest sector in US equity market based on their JdK RS-Ratio reading. Energy (XLE) started heading due South almost immediately after entering the leading quadrant and now even turned back into improving while very close to the center (benchmark) of the RRG. XLRE (Real Estate) and XLU (Utilities) are inside lagging but heading upward on the JdK RS-Momentum scale. Short Read More 

RRG Charts

Responding to comments and answering questions from MWL last week

by Julius de Kempenaer

  Last week Wednesday (29 November) I was the guest of Tom and Erin in the Market Watchers Live show. During the show, we talked a lot about RRG, Relative Rotation Graphs, covering some basics and some new(er) techniques and interpretations that I have been working on. If you missed the show you can watch the recording on the MWL youtube channel here. MARKET WATCHERS LIVE 11.29.17 As you may know, people can post comments or pose questions in the sidebar during the show. I have tried to answer questions and respond to comments during the show, but I Read More