Relative Rotation Graphs

[EdwardjK]

I came across a fairly new tool that may be of some value to those who use the PP.  It is called the Relative Rotational Graph and is available through a paid subscription on Stockcharts.com.

The graph displays the comparative momentum and performance results of an index, equity or bond against other indexes, equities and bonds of interest.  The graph displays which are leading, lagging, and improving.

Although PP purists will likely scoff at the idea, I am thinking that using this tool to identify the leading PP component will allow a user to overweight that component, thus improving performance.  While the idea of the PP is not to actively manage the portfolio, this tool may be valuable to those who are willing to take a more hands-on approach.

Details behind the graphs are available at relativerotationalgraphs.com.

Please take a look and provide comments and feedback.

Thanks.