 Hello traders at CMC markets, welcome to a new update by RRG research for Monday the 20th of June and I'm recording it on Friday the 17th. My name is Julius de Campanara and I'm presenting to you from Amsterdam in the Netherlands. Wow, I was looking to what I was gonna discuss with you and I It was hard to find Or it was hard to choose I have to say it was hard to choose which charts to share with you because there is so much going on in the markets right now So I've I've picked out a few of Which I think are big themes and if we start with world stock markets Then we have the RRG for that shows a number of stock market indexes And I'm sure you're familiar with that right now after a few episodes of this video and It shows you the rotation of a number of major stock market indexes around the world versus the MSCI world And if you look at this at first sight, it doesn't even look that bad There's a lot of greens a lot of tails inside the leading quadrant But don't be fooled by this because this is all based on relative strength This is based on relative strength versus the MSCI world So the center of the chart here is the MSCI world index and what you see is that The S&P the NASDAQ and to a lesser degree the Russell 2000 are in relative downtrends versus the MSCI world And obviously the US the Americas are a big chunk of the MSCI world. So of that benchmark and almost by definition that means that the smaller markets, which is all of those are On the opposite side of the equation. So there has to be because it's because it's a closed universe. So When something's going down something else relatively needs to go up and that's what you see happening here now as I said, don't be fooled by this but because Stock markets around the world are in trouble and you can see that when you switch the RRG to Use a benchmark that is 0% basically making it a Price-based RRG Looking at a looking at a benchmark that never goes down that is 0% return Then this is what you see now That's a completely different picture you can basically is telling you that all stock markets around the world are in downtrends Because that's what it is on the left-hand side They're in downtrends and that you know fits with our what we see in the news and on our charts if we do that same trick for The daily version of that RRG then here is the daily versus the MSCI world and you see again that Here's the NASDAQ the SMP is the other red one and you got the rest of 2000 It's already rolling over again heading towards weakening and then lagging and you see that the other greens are moving to the top Right, so they're doing relatively well, especially the Asian market So the Japanese Nikkei and the Hang Seng index, but also in Europe the the footsie the KAC the overall European stock market stocks 50 and the DAX they're there from a relative perspective doing much better than the US indexes All in all that gives traders very good opportunities to benefit From pair trades, so you can do you can set up trades that are market direction agnostic by squaring one against the other if we look at the The daily RRG against 0% return then I don't think this this image needs a lot of words US stock markets, sorry world stock markets are in downtrends and The daily has just returned back to the lag in quadrant and it's coming back in line with what's happening on the weekly version From a relative perspective, I think that the main message is that the US is dragging the world down and There are now better places to hide than in the US if you really want to be in stocks Or you can benefit from the spread between US markets and other indexes by setting up pair trades We have a quick look at the chart of the S&P 500 We just broke major support and it looks as if we're underway for a test of 3500 maybe even 3300 if you look at the Euro stocks 50 Then this is actually just breaking an important support level But you can see that this chart even from eyeballing the the candles is in better shape than the S&P 500 It didn't tank as much and you can see the relative perspective here by the RRG lines that are still pointing higher now another theme that I want to highlight quickly with you is what's happening in the forex market and If we bring up an RRG of the G10 currencies We're using the US dollar as the base So for this chart the US dollar is now the center of the chart And what it tells you is that the US dollar is the strongest currency in the world at the moment All the others are at least in this universe are to the bottom left of the US dollar if you would use the RS ratio as a ranking mechanism the US dollar would pop out on top and This is a weekly RRG. So these are weekly tails not very very short term and it doesn't look as if they're Turning curling back up anytime soon Australia and Kiwi Aussie and Kiwis are pointing lower the Nordics or Swedish corona and Norwegian corona are pointing to the lower left The the British Pound Swiss Frank they're opponent. We don't even have to talk about the yen And then we have the the euro which went through a little bit of a hiccup and now also start moving to the left again So general theme general message here overall US dollar strength And it looks as if that's going to continue for a while more One more chart that I want to pick out and that's the euro dollar chart And I brought up the monthly chart. I know it's it's an extremely long time frame if you trade currencies But I did that because I think we're at a very important level for euro dollar. That's around 104 We've tested that level a few times over the last seven years. So you can see here 2015 This is 2015. This is 2017. We didn't quite reach it here in 2020 But nevertheless nice dip and now we're once again arriving at the 104 level So we what we have on our hands right now is a range between 104 and roughly a little bit above 120 122 124 If this level breaks if 104 gives way gives gives way to the downside I think that is a major break for your your for the euro dollar rate and It will very likely trigger even more US dollar strength and euro weakness because that's what it is when this goes down that means you US dollar strength your weakness I Think we're looking for your dollar prices below parity below one time will tell but please watch 104 Ladies and gentlemen, thank you for watching and I hope to see you again next week at a new episode of ROG research See you next week same time same place