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 :)
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 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.
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.