RRG Charts

November 2018

RRG Charts

Plotting breadth indicators on Relative Rotation Graphs - Part II

by Julius de Kempenaer

After finishing the previous article on plotting breadth indicators on Relative Rotation Graphs I have spent hours and hours on studying probably a couple of thousand different RRGs holding various groups of sectors in combination with their breadth equivalents. And although I did not find the perfect prediction tool or the ideal leading indicator I do think using these alternative data series on RRGs can function as a piece of the puzzle that we are trying to solve. What have I learned so far? For this experiment I worked Read More 

RRG Charts

Plotting breadth indicators on Relative Rotation Graphs - Part I

by Julius de Kempenaer

In my contribution to last week's Chartwatchers newsletter, I mentioned my current experiment on using breadth indicators on a Relative Rotation Graph. In this article, I want to take a look at a few of these setups side by side and see if there is indeed a leading tendency for breadth to lead price on the RRG as it tends to do on regular charts as well. I remember sitting in on a presentation by Greg Morris at the CMTA symposium a few years ago when he was talking on breadth indicators. In that talk Greg used the quote: "Breadth arrives at a party on time Read More 

RRG Charts

Using RRG to find some good and some not so good names inside the DJ Industrials index.

by Julius de Kempenaer

The relative rotation graph above shows the rotation of the 30 DJ Industrials stocks. Watching the interaction on the canvas, a few rotations catch the eye. Inside the lagging quadrant IBM, HD, and DWDP are clearly moving deeper into negative territory. On the opposite side inside the leading quadrant, we find MCD, WBA, PG, and WMT at strong RG headings moving higher on both axes. In the weakening quadrant, the most pronounced rotations are visible for Nike and Apple. Both stocks have gone through a strong rotation and are now rapidly losing Read More 

RRG Charts

Some utility stocks worth paying attention to

by Julius de Kempenaer

The relative rotation graph above shows a selection of stocks in the utilities sector. I have created this zoomed in version for better visibility. The fully populated RRG can be found here. In this post, I will highlight a few of the stocks shown in the picture. As XLU is now one of the sectors inside the leading quadrant vs SPY and continuing higher on both axes. I will focus on a few names that are expected to fuel further relative strength in utility stocks but also point to one that is better avoided. Summary Read More 

RRG Charts

Two stocks in the Consumer Staples sector that could offer shelter when needed.

by Julius de Kempenaer

In this blog post, I want to do a quick top-down analysis to arrive at a few stocks that could help investors to provide shelter in case the current hiccup in the market is .. well a "hiccup."  The Relative Rotation Graph above shows the rotation of various asset classes around a balanced benchmark portfolio (VBINX). The quick observations that we can make from this picture are that the cluster of fixed income related asset classes is, still, moving inside the improving quadrant and close, to crossing over, to the leading quadrant Read More