Assumed (just as an example) I compare a sector ETF such as XLF vs. SPY. The RS-Ratio and the RS-Momentum of the XLF are over 100. This means the trend and strenth of XLF is up. If I go long by XLF, I can make profit.
But, since RS-Values of XLF are "relative" to that of the SPY, and if SPY is going down faster than the XLF, the XLF can have RS-Values over 100. If I go long on XLF, I can get loss. Is that right?
so I think, I should go long on XLF and at the same time go short on SPY. Am I right?
RRG discussion and support forum
This forum is dedicated to Relative Rotation Graphs and is your resource for all your questions, suggestions and feedback. We love to hear from you. The forum has several sub-categories. The FAQ is a closed forum where you can read answers to some most Frequently Asked Questions on RRG. RRG General is the area where you can post and get answers with regard to general RRQ questions or issues. RRG on partner systems is where you will find and can ask any questions specifically geared towards the implementations of RRG by our partners
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- Thursday, 05 January 2017