RRG Charts

June 2019

RRG Charts

An Investment Process Is All About Piecing Things Together To Get Other Or Better Insights.

by Julius de Kempenaer

In my last DITC contribution, I wrote about the Real Estate sector, which is crossing over into the leading quadrant at the same time as the seasonality chart for that sector indicates that, over the last 20 years, XLRE closed the month of July higher 71% of the time, with an average gain of 1.9%. (The average gain, by the way, is calculated over all years, not just the years in which Real Estate outperformed the S&P 500.) In this article, I am going to take a look at the seasonality of all sectors, in combination with the Relative Read More 

RRG Charts

(Technical) Market Analysis And Portfolio Construction Are Two Completely Different Animals In The Same Zoo.

by Julius de Kempenaer

First of all, let me say that I really appreciate any feedback and comments I get on any of my articles, either via DISQUS below each blog post, via email or in SCAN. I do read all of them and I try to answer most of them, I think my response rate is above 90%. So if I have missed yours, just ping me again. Just being polite is one reason to answer, even if the answer is "sorry I cannot answer your question." But, more importantly, the interaction with readers is fun and sometimes thought-provoking. And, on a regular basis, these exchanges of thoughts provide ideas for future Read More 

RRG Charts

Staples and Financials Head Towards the Leading Quadrant While Energy Rolls Back into Lagging

by Julius de Kempenaer

The chart above shows the relative rotation for US sectors against the benchmark S&P 500. Over the last five weeks, the tails for Consumer Staples (XLP) and Financials (XLF) started to move in a similar fashion. Both are heading towards the leading quadrant. The Energy sector, on the other hand, rotated back into the lagging quadrant, following almost four months inside improving without being able to make it over to the right-hand side of the RRG. Energy - XLE The last 25 weeks of rotation show the Energy sector Read More