 Good morning and welcome to today's products and focus and what we're seeing today is a massive sell-off in the Chinese equity markets once again Which caused the circuit breakers over there to trip with those markets down over seven percent again For the second time this week and that's had a big knock-on effect to most other global equity markets The Germany 30 in particular down almost three percent this morning and the Australia 200 also feel in the pain Down about two and a half percent that most global equity markets are really on the back foot this morning And the charts from a technical perspective are looking pretty ugly So what's really causing this this kind of global pain right now? It's the currency devaluation of the yuan is having a big knock-on effect right across the globe The problem being is that if China keeps on devaluing its currency Then you're going to have a capital flight risk because obviously if you've got investments in the yuan and it's selling off Aggressively against other currencies as an imaginary an American investor or European investor You've seen the value of your investment decrease every single time the Chinese government devalued the yuan Which they did again today which took the market slightly by surprise and it's just having a horrible effect on the rest of the markets Looking at commodities as well in particular if you've got the yuan devaluing It now becomes actually more expensive in real terms in China to buy crude to buy gold silver industrial Metals that you can't get domestically so it has this knock-on spiral effect on some of the other markets as well And we're going to be looking at some of those charts in more detail but basically it's about financial instability uncertainty and As you'll see by some of the headlines running below the bottom of this video so far this morning There's a lot of negativity in the markets But that does also bring with it lots of opportunity depending on your view on the markets So let's not waste any time. Let's go ahead and have a look at the US 30 So as you'll be able to see here from the chart, we have had an aggressive number of candles We've smashed through potential support round about sixteen thousand seven hundred and change The Dow is down about three hundred odd points so far this morning and it's at the bottom of his range Death crossing the moving averages other technicals are relatively neutral But the fact is is that we're trading below our major support and the fundamentals are not that great 61% of CMC markets clients are currently short on the US 30 So that gives you a bit of an idea as to the sentiment out there Moving on to the UK 100 We also have an incredibly negative candle because we have such a big exposure to metals and commodities Which are really getting smashed this morning very negative candle trading the bottom of our range We're already down a significant percentage so far this morning on the UK 100 We've got a bearish crossover on the MACD and the other technicals seem to indicate there could be further downside before we get any oversold Aspects on there. We are approaching potential support at 58 79 And it is a particularly bad candle so far so early in the morning Moving on to Japan 225 60% of our clients are buyers right here I think that's because we are quite close to this potential support at 17 6 39 Again ugly candle already trading at the bottom of its range falling on from yesterday's ugly candle We are getting we are oversold on the RSI and we're just about to get oversold on the slow stochastic as well So that gives you an idea of what to expect. We've got a death cross on the moving averages After we're just broken breaking below that support right now next potential support 17 172 So then moving on to dollar yen surprise surprise everybody's buying the yen all day long It's a safe haven asset 65% of seemsie marks clients are currently long on on Dollar yen, but they'll be feeling a little bit of the pain right now The end is a safe haven in terms of turmoil same with with gold But you can just see from the chart here that people have been buying the yen at the expense of the US dollar We have been below 118 is slowly ticked back up again But basically below this there isn't another support level until you probably get down here I think I'm completely honest closer to 116 and you just see that that client sentiment just moved there just now So we're actually just seeing a number of a number of clients certainly clients with a big position Reducing their long side on the dollar yen FX pair live as it happens This is horribly oversold at the moment with the RSI the slow stochastic But the fundamentals are overriding the technicals. So then having a quick look at West Texas crude as well Now it is absolutely getting smashed 86% of seemsie marks clients are tempted to buy crude oil at the moment Could oil is down more than 10% in the last two sessions really really ugly And the thing is once it's broken through 34 dollars. There isn't another support level I actually had to go on to the monthly charts, which I'll just well you be this is the level right here 26 spot 73 is the next potential support level that I can find which means we're massively in no man's land You might be looking at $30 is being a psychological number to look at But this this is a bit of a problem And it's all about the fact that China because the currency devaluation will find a lot of their industrial materials a lot More expensive to buy and this is this is a big problem for West Texas crude So even though you have Iran and Saudi Arabia like kind of pointing Their their savers at each other that's not really supporting oil price because they're gonna keep on pumping and pumping and pumping because they need as much money As they can just now They can't afford to cut things back and when I first started she started recording this video This is closer to about thirty two dollars. So it gives you a bit of an idea as to the extremity of the move So then moving on to gold gold's getting a night a nice kind of move to the upside those is off the session highs as you Get closer to potential resistance at 1104 it's been pushed back down again just now So this would be a graveyard dolgi formation if it kind of forms like this But we'll see how it continues throughout the day a very similar pattern to what we had for a dollar yen So the yen had gained much more strength, but then being pushed back up But this is where we are just now We are in the middle of two ranges one thousand and eighty seven and 1104 and we finish up with your dollar and GBP USD your dollar clients are sixty six percent as short as you can see there We managed to get a rebound back up to one spot zero eight Only for it to get pushed back down again I'm going to see how that continues so far this morning other technicals are relatively neutral and then we finish up with GBP USD clients are seventy four percent long It's really feeling the pain and I need to draw this level on here because we're getting quite close to just now One spot forty five sixty six not so good for the sterling bulls The trend is still quite negative when you look at it right here just now We broke below potential support right here and the next potential sport one spot forty five sixty eight Okay, so economic day wise. Let me just bring my economic calendar up here for a second You'll be able to see that we've got the housing index That's due at ATM UK time. You do have the consumer confidence index. Let me just stretch that out ever so slightly That's going to be a 10 Then you do have unemployment claims and if we actually just fast forward on to Friday, don't forget guys We still have non-farm payrolls look forward to And now the ADP payrolls that came out yesterday were actually much better than expected So hopefully we get some good news from the US, but certainly it seems to be a bit of bad news everywhere else Well guys, that's it for me just now Very good luck with your trading and please join me again tomorrow to find out what happened next