 Hello, CMC traders. Welcome to this RRG video for Monday, the 21st of March. I'm recording this on Friday, the 18th before the market opens. My name is Julius de Campanar and I'm presenting to you from Amsterdam in the Netherlands. For today, I want to focus on the rotation of various market indexes, market country indices. You see the weekly RRG on your screen here. There are actually two tails that I want to focus on. The first one is for the Hang Seng HSI. The second one is for the Australian market for the ASX200, that's AS51 code here. As you can see, the tail on the Hang Seng index is inside the improving quadrant, it's rolling over and it's starting to head lower, more south towards the lagging quadrant again. That's a type of rotation that we know is quite negative. The rotations through all the quadrants, they're always clockwise but not necessarily always sequentially through all quadrants. We can see rotations taking place completely on the left-hand side or completely on the right-hand side of an RRG. When that happens, it pretty much indicates a very strong trend. On the left-hand side, those are relative downtrends. By the way, the benchmark that we're using here is the MSCI World Index. All these countries are compared to the world. When you're on the left-hand side, those tails, those markets are in a relative downtrend versus the MSCI World. On the right-hand side, they're in a relative uptrend. What we have here at hand in Hong Kong is a market that is already in a relative downtrend. The move up was a recovery within that downtrend and it looks as if that downtrend is now starting to pick up again. You can see that when we scroll back the RRG through time, which we can do, and you can see that, for example, a good example is the US market, the S&P. If you focus on that, you can see this short tail here, that's the S&P. If I scroll forward, you can see that it rotates clockwise, but it stays on the right-hand side of the plot. That is strong. That makes the US a strong market over the last few weeks, even months, relatively speaking. A similar thing on the left-hand side is happening, for example, for the Nikkei and for the Russell and the NASDAQ to a lesser extent. We're seeing that now in the Hang Seng Index. The Australian market is moving into the leading quadrant, has crossed over and is now starting to move further right into the leading quadrant. That is positive because it has picked up a relative uptrend versus the MSCI World Index. If we bring that to a daily RRG, which is giving you a similar picture only with more granularity, and we try to find the tails for the Hang Seng, which is deep inside the red lagging quadrant here on the left bottom. You see HSI, and you see Australia on the far right. It's the tail here that has just hooked down. That is interesting because this is sort of a weakness, but you can see that on the scale of the RS ratio, the JDK RS ratio, is still the strongest reading. Basically telling us that the Australian market is in a relative uptrend on a longer-term basis, and it is going through a little corrective period with a very good chance that it will go into weakening and then pick up again and rotate back into leading. The opposite is happening with the Hang Seng Index where it's already starting to roll over. It is in a relative downtrend and on the daily that relative downtrend is confirmed, but it's sort of taking a little break. I will always tell you that RRGs in itself are not a tool to take decisions. They are a great tool to give you a big picture overview. We say that RRG gives you the big picture in one picture, and that's exactly what you're seeing right now. You're seeing the major stock market indexes across the world captured in one graph. But ultimately you need to draw a price chart, or at least that's my opinion, to pull the trigger. That's going to give you the ultimate information because in the end of the day, price is the only thing that really counts. If we bring that to the Hang Seng Index, and this is a weekly chart, and I did that on purpose because we've got to go back many years to see what's going on. Very recently, of course, market sold off. It's been very, very weak. I think what a very important event was two weeks ago that we broke below this really long-term, horizontal support level that connects a couple of major turning points over the last few years. Then we dipped, and you see that the market is now recovering. We're now pulling back to this old support level, and there is a saying in technical analysis, old support becomes resistance and vice versa. I think that that's exactly what we're seeing now inside the Hang Seng Index. If we bring that to a daily chart for the Hang Seng, then you see that even more clearly. We even have a gap up. There is a little bit of a gap area here. I think that 21.480, let's round that off at 21.500, is a resistance level. Maybe it can be stretched toward 23,000, but that's probably it. The Hang Seng is bouncing upward while the long-term trend is still going down, and that's for both the relative and the price. If we go to the Australian market, the ASX200, here's the daily chart and you see that it is a lot stronger than the Hang Seng Index. It's actually putting in higher lows already, and we're working on resistance in that 7300 area for the ASX200. You can see the RRG lines being very, very high, but plenty of room to maneuver. For the ASX, as we saw on the daily RRG, it looks as if it's going through a little bit of a correction, and we can see that back on the chart where we are running into trouble. Once the market is able to clear this overhead resistance around 7300, I believe there is new upside potential for the Australian stock market to move a little bit higher, probably towards the older highs here around 7600. I'm going to wrap it up here, and I hope to see you again at a new episode for the RRG charts in the future.