 Hello, traders at CMC Markets. Welcome to another Momentum Update by RRG Research for Monday the 27th of June, recording it on Friday the 24th. My name is Julius de Campanar and I am presenting to you from Amsterdam in the Netherlands. Let's kick off with an RRG showing the rotations price-based, not relative, price-based for a group of world stock market indexes. And I think that gives you a sobering picture. If you look at the tails, then you can see only one inside the weakening quadrant, that is the Hang Seng Index. And that means that the Hang Seng is in an uptrend based on price, but losing momentum. And all the others, and that's the big group, the big cluster here of all those red tails inside the lagging quadrant are in downtrends. Now this is on a daily scale. So for the majority of these markets, the price charts, the price trends are heading lower, are heading down. Does that mean that there are no opportunities at all? No, it doesn't mean it. It's just one to make sure that you are aware of the fact that the dominant direction for world stock markets is lower in terms of price. Now the good thing when you look at RRGs at relative rotation graphs is that when you start looking at relative images, then things start to change. And that's what we see here. This is the relative rotation graphs, the originally designed showing you the same group of indexes versus the MSCI world. So here the MSCI world index is the center of the chart. And it's still the same picture, the same message as we had for the last few weeks where the US markets were sort of holding the world down and the majority of others were pushing up into the leading quadrant. You can see that there are coming some cracks right now. You can see Australia rolling over, the UK is rolling over, French CAC, Europe as a whole stocks. So image seems to be changing a little bit and you can see that the NASDAQ has curled up, the Russell is moving in a good direction and the S&P, it's only a notch, but it turned up this week actually. We're looking at the weekly RRG and that last notch is starting to point higher. If we look at the daily version of that chart, you got that whole image a little bit more pronounced. I need to zoom in and you will lose the Hang Seng index over the average. You can see how that rollover of these Asian indexes is now getting more and more pronounced. You can see also that here the Russell is moving lower, NASDAQ and S&P moving higher and Australia is rolling over. And that's actually the market that I want to discuss because RRGs are a great tool to find pair trading opportunities, to find long opportunities and short opportunities where you can set up trades that are agnostic of market direction. And the one that I want to highlight here and point out to you how you can use that is very aggressive. And what I mean is this, if you look at the RRG, this is the weekly RRG and you can see the tail for Australia rolling over. So it's still strong, but it's rolling over, it's losing relative momentum. The NASDAQ on the other hand is on the far left side of the graph inside lagging, but that is starting to pick up relative momentum. Now if you would put these two together, you got a very aggressive pair trade. And the way I do this is I want to look for tails that are moving in opposite directions and the NASDAQ and Australia seem to be doing that. And if I check that for a confirmation on the daily RRG, you will see a similar image. So here is the NASDAQ, I'm gonna blow this up for you. So here's the tail for NASDAQ and here's the tail for the ASX200. They're going in opposite directions and that provides opportunities. Obviously the final check is on the price chart. So when we look at the Australia 200, the ASX200, here's the weekly price chart. And you can see that it just came out of a major top formation, a major range. And the way I read this chart is that upside potential is now limited towards that breakout level. And obviously the risk is to the downside. Now look at the RRG lines here. You can see that the green lines already started to roll over and it's now starting to drag the RRG ratio line with it. If we go to the NASDAQ, this is the same chart for the NASDAQ. You can see, I mean the dominant trend for all these markets is lower. So no surprise that the price trends go in lower. However, NASDAQ seems to be touching on a support level. And if you check out the RRG lines, this is where it become interesting. You can see that the green RS momentum line is starting to move higher. It already had a first stint and it's now starting to pick up again and it's dragging. It's starting to drag that red JDK RS ratio line higher. So that makes good opportunities for bear trades. For this week, I want to do a similar reading in a similar way, the RRG of the NY FANG plus index. That's a group of major stocks on the US stock exchange. And maybe we should call it NY Mang now because Facebook has changed its name into Meta. So NY FANG is probably now going to be NY Mang. But I hope you got the idea. Now if we look at this at this chart and take in what I just told you about tails moving in different directions, the one that I spot and that I think is interesting is Baba versus Tesla. You see that Baba is at a trajectory with a positive heading. It's moving into that northeastern direction, while Tesla is moving pretty much the opposite direction into southwest. And that's when I want to check on these individual charts. So let's start with Tesla. That's the negative one. And you can see that it completed a massive, call it a double top, coming out of a topish formation. No matter what you want to see in it, it broke below a major support level. And here also, upside potential is now very, very limited, I'd say towards 770, while the downside is pretty huge. You start with 545. That's an important support level, but it could go even much lower. Now again, you want to look at the RRG lines and you can see that these are moving lower. And that's the interesting part. So Tesla is underperforming the NY FANG plus index. Now we saw the tail for Baba on the other side, moving into that northeastern direction. And then that's what you get when you bring up the chart. Again, dominant direction in price is down. We know that. There's no problem about that. But Baba is coming out of it, falling trend channel. You see that the most recent low is sort of at the same level, so we're testing supporters. It looks like we're hammering out support here. That's around 80 US dollars. Obviously, there is a bit of resistance. Well, there is resistance around 120, but what I'm very interested in and observe here is the fact of the rapid rise in terms of relative strength. So the RS ratio is now rapidly moving towards 100. RS momentum is already above 100. It's only a matter of time and a little bit more improvement before the RRG lines are both above 100. And that puts Baba and Tesla against each other when you look in terms of tails on the RRG. So Baba powering into that northeastern direction, Tesla moving into that southwestern direction. That's it. We're eight minutes. Thank you very much for watching. Hope you enjoyed the show. And I'm looking forward to see you again next week, same time, same place.