 Hello, traders at CMC Markets, welcome to a fresh update by RRG Research for Monday, the 19th of September and recording this on Thursday the 15th after the close of the markets in Europe. My name is Julius de Campanar and I am presenting to you from Amsterdam in the Netherlands. Let's kick off with a look at the recent rotations for world indexes. We're looking at the weekly RRG for that group that we're monitoring here on this show. And there's a few things that we can observe here. I think one of the most important or maybe the most important trail at the moment is the one for HSI, the Hang Seng Index in Hong Kong. You can see it's very long, which means that there is a lot of power behind this move and it's powering into that lagging quadrant, meaning that there isn't a downtrend versus the MSCI world because that's what we're comparing it with. Couple of other things, the Nifty in India is doing pretty well, there's a few ways you can trade those on the platform, a few ETFs that you can use for that. And the other observation is that Europe seems to be taking over from the US. If you look at the stocks index that's right here, you can see that that is turning back up while inside the weakening quadrant and we know that that is a strong sign. And obviously you see similar rotations for the French CAC, the German DAX, although that's inside lagging but it's turning up. The UK is improving, it's not there yet but it's improving. But looking at the American indexes, the US indexes, you can see the NASDAQ rolling over here, you can see the Russell still moving right but losing momentum and the most important one, the S&P 500 is rotating contrary to the Europe stocks index and then you got the Dow, the in detail right here heading towards that lagging quadrant. So the big takeaway from this picture is that Europe seems to be improving versus the US. The Indian market, the Nifty is doing remarkably well I have to say and the big one to avoid is Hong Kong. If we switch to the daily version of this chart to get a shorter term pattern and maybe find confirmation of what we just discussed then I think we can certainly see the rotation for the Hang Seng here as well, rapidly rolling over, moving rapidly towards that lagging quadrant so the weakness for the Hong Kong market is certainly visible here as well. We can also see the weakness for the US markets, we got the Dow here, we got the S&P starting to move to the left, we got the NASDAQ inside lagging picking up a little bit of momentum after a big down move but it's far away from the center and to the left so that's not the strongest thing that you can get here and we've got the Russell that's moving into the lagging quadrant and obviously we got the Dex moving there. Nifty, the Indian index which did very well on the weekly is now losing some power here on the daily version but it is the highest reading on the RS ratio scale right here so it's got plenty of time to maneuver and potentially curl back up while going through the weakening quadrant so for the time being I'm going to judge this as a temporary setback within that longer term improvement. I will add a few of the annotated charts in the accompanying article but the one that I want to bring up here is obviously the Hang Seng because that is the biggest move that we see at the moment and it is right now breaking through an important support level. You can see the downtrend that's in place since February 2021 it's taken the market a lot lower in a very regular rhythm of lower highs and lower lows and at the moment as we speak we're actually breaking below that May 13 low or the weekly loader there is a spike low here in March but you can see that it recovered here because the bottom of the candle is right here and 20,000 21,000 20,100 so I'm going to use this level here as the major support level and this looks as if we are breaking it right now you can see how that responds to the RRG lines and both are pushing lower if you zoom in on the daily then we get a better angle on that what happened in that week that was that spike low on the weekly you see that is a single low right there and here is the level that I'm watching right now that's the May low we tested that one two three times broke it and now last week we tested it from the from the bottom as a resistance so this old support level came back as resistance and we're now working our way lower so please keep an eye on those levels 19 let's say 1900 on the upside and then you really get a confirmation for weakness when the Hang Seng Index takes out 18,000 let's say 18,400 going forward we had an idea we have an idea to potentially get you some more actionable trade ideas that are potentially looking at some shorter term moves so it's still work in progress but one of the things that we do with RRG and in RRG research is try to see if we can sort of quantify the moves that we see those tails making and we already talked you talked a few times about the RRG heading that's when a tail moves into a heading between 0 and 90 degrees think in terms of a compass between 0 degrees and 90 degrees that's when the indicators are both going up so on the RRG the tail is picking up strength on both axis that's a strong sign then also a thing that is that we know is strong is RRG velocity and RRG velocity is the distance between two observations on a tail the bigger that distance the stronger that move obviously and when that RRG velocity is increasing so that distance is increasing on the tail that tells us that there is increasing strength in that tail in that stock and then obviously at the end of the day we want a stock to move up or for the time being I know we can do shorts and stuff but for the time being we're focusing on the long side and we want to have stocks or we want to look at stocks that are going up and I've sort of arbitrarily defined that as being above their 10-day moving average so all we've been doing is running some scans and running some what we call signal tests using these three elements and I'll try to describe that a little bit better in the article and show you a graphic of that but when we do that on the 350 stocks in the UK index we can scan for the stocks that met those criteria this week was a matter of fact today as of today I have added that list or put that list on an RRG and as of today these names popped up fulfilling all three criteria and this is the RRG that belongs to it and almost immediately quite clearly there's two names that stand out that's NETW and this is the chart that belongs to it is network international holdings and lo and behold you can see that it is breaking above that important resistance level RRG line is very strong trend is super strong there so I'm gonna look at that chart in the article as well as for TUI, TUI are gay trading in London you can see that this could very well be the beginning of a double bottom in the making still some work to be done I'll describe that in the article which can see that the RRG lines are putting up and you can see that it is rotating towards that leading quadrant this type of approach gives us the possibility to provide you hopefully on a weekly basis with some individual stocks that have some potential based on a historical test of which we know that the outcome is positive mostly about 10 days into the future and that's it for this week thank you for watching I'm looking forward to seeing you again next week at a fresh update by RRG research same time same place