RRG Charts

January 2018

RRG Charts

Relative Rotation Graphs are sending a clear message for Real-Estate (XLRE) and Utilities (XLU)

by Julius de Kempenaer

The Relative Rotation Graph shows the positions of US sectors against SPY as of 26 Jan. Sometimes the rotational patterns are not so clear but in this example, there is one observation sending a screaming message: Avoid Real-Estate and Utilities. At the other end of the spectrum inside the leading quadrant, we find a few sectors that show a more positive relative picture. XLY (Consumer Discretionary) shows up at the highest JdK RS-Momentum reading but at the same time has turned at an RRG heading of almost exactly 90 degrees where we prefer heading Read More 

RRG Charts

Using Relative Rotation Graphs(R) to get a handle on both price- and relative rotation in ONE picture

by Julius de Kempenaer

In my last blog, we looked at the 30 components of the Dow Jones Industrials Index and more specifically at the relative positioning and relative rotation of these 30 stocks around their common denominator the DJ Industrials index ($INDU). And despite the fact that this is valuable information you may want to keep an eye on the (absolute) price trends that are in play within that universe as well. The good news is that no new tools are needed to do that as Relative Rotation Graphs are fully capable of providing its “BIG picture in ONE picture” visualization from an Read More 

RRG Charts

Selecting stocks to watch (and avoid) in the Dow 30 using Relative Rotation Graphs(r)

by Julius de Kempenaer

  The Relative Rotation Graph shows the members of the DJ Industrials index against $INDU. This is a so-called closed universe which means that all elements that make up the universe are present in the plot. If we would calculate all the distances (vectors) from the center of the chart to the various stocks (market cap weighted) and add them up the result would be zero. The two stocks that immediately stand out are GE and MRK, although both are showing an uptick in relative momentum (rising JdK RS-Momentum)they remain deep inside the lagging quadrant. Read More