If you have ever watched one of the webinars or Market Watchers Live shows that I have done here at Stockcharts.com, you may have seen me use Relative Rotation Graphs holding individual stocks and compare them to their sector benchmark.
After each appearance, I always got a few questions on how to do that and in 2015 I wrote an article, including a video, on how you could set up your own RRGs holding individual stocks based on the constituents of (SPDR) ETFs tracking the various sectors. Including a video showing the process.
As it is a bit of a tedious task and on top of that it needs to be repeated on a regular basis, at least once every quarter. And, it needs to be done for ten sectors it could have been a bit of a hurdle to go out and actually do it.
Well... there is good news :)
Permalinks
Until now you had to go through the cumbersome task of collecting all the ticker-symbols, copy-pasting them into an RRG and then saving the permalink for that RRG as a bookmark for later reference.
Note: Permalinks enable you to store an RRG that you have created as a bookmark in your browser which can then be used to bring up that exact same RRG (ticker symbols, benchmark, tail length), at a later stage, updated through to the actual prices.
New groups available
Those of you who use RRG charts on a regular basis may already have noticed a recent change to the groups drop-down box.
Since last week we have added pre-populated universes for all ten SPDR ETFs (not for Telecom) which means that you will be able to bring up an RRG for the members of a sector compared to that sector's benchmark with one click, instead of having to
The top-link "S&P 500 sector ETFs" leads to the sector RRG as you know it. The links below starting with ">" will bring up the RRGs populated with individual stocks for the various sectors.
On top of that, we will keep those universes up-to-date on a regular basis.
The process
The way we have set up these member-universes is as follows.
We collect the members for the ETFs, these data are publicly available. As RRG charts are limited to hold a maximum of 50 stocks we will sort the members for each sector based on their weight in the index and then select the top-50 names for each sector.
So if a sector holds more than 50 stocks only the top-50 names will be shown on the RRG. If a sector holds less than 50 names all stocks in the sector will be shown on the RRG.
Your wish-list
I am working on putting together more pre-populated universes for RRG and I will do my best to provide a setup that "makes sense".
Ideas that I have in mind are for:
- Asset classes
- International equity markets
- Fixed income markets
- Currencies (based on real cash majors or crosses, not ETFs or futures)
- ...
but instead of me dreaming up things of I think that you may like, I'd love to get your feedback or wish-list with regard to markets for which you would like to see pre-populated universes for RRG charts. So don't hesitate and drop any ideas in the comment section, no guarantees but I will do my best. Often the availability of data-sources could be a limitation but when we have it in the SC database, we can very likely use it in an RRG.
Let me know what you think of this new addition to RRG in the comments? If you want to receive a notification when a new article in the RRG blog is published? Simply "Subscribe" and leave your E-mail address.
Julius de Kempenaer | RRG Research
RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered TradeMarks ®; of RRG Research
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