 Hello traders at CMC Markets. Welcome to another update by RRG Research. For Monday 26th of June I'm recording this on Friday the 23rd of June. My name is Trevor Neal and I'm presenting to you from London. Before we go into global stock indices and then we're going to go on to finish looking at currencies. So we look at the stock markets, particularly the technology stocks and then we're going to end with some opportunities I think that we see currently in the foreign exchange market. But before we do all that let's have a look at asset allocation. So our equities are good thing to be in. To do this I've got a relative rotation graph. I have the LSEI world index in the centre here. So this is versus the world index. And then I'm using the high shares ETFs as surrogates for the assets. So here we have gold. Gold has moved very rapidly with a long tail from leading into the lagging quadrant. The Europe shares also deteriorating still in the weakening quadrant but I think we can see where this is heading. All the interest rates related corporate bonds, treasuries, high yielding corporate bonds are all pointing south-west and looking poor. The market is also looking poor as well. The emerging markets south-westerly in the lagging quadrant. The small cap coming up a bit, nothing too interesting there. There's just one thing. In the leading quadrant and heading in the north-easterly direction that's US stocks. So we're right if you are concentrating on US stocks. Not much change to report on the major global stock indices versus cash. We look at cash here. So everything on the right of the vertical line is outperforming holding money in cash and then heading to the left is underperforming that. We've still got the out here. The furthest to the right is the NASDAQ, the Nikai. Also very strong, weak currency and strong stock market. The S&P has improved a lot. The Dow has improved a lot, jumping from the lagging quadrant into the leading quadrant. And the Russell 2000 is improving but it's still lagging behind. The European indices, the stocks, the DAX, the CAC all bunched up together and very stable here outperforming cash but not as good as the NASDAQ but better than the Dow and the Russell. And the FTSE here is still holding like avoiding recession but just about and quite stable short tail here just in the weakening quadrant. The Hangse is the weak one here. This is a daily chart of the S&P, moving up strongly, higher lows in place, breaking this gap, pulling back, forming support here, breaking this major resistance at 4300 level which had long-term resistance, powerful breakout, pullback, drifting sort of pattern causing the MACD to narrow up a bit but still be positive and the RSI to come down through 65 from above. Zooming out a bit to the weekly chart, we see that the MACD gap is widening. We just had this rather small pullback candle, got a lot of power in here. We've broken through that 4300 level and we see the next level is the 4600 level. Before the high up at 4800. So 4400 to 4600 is just look as though there's a little friction there. We've got a bit of pullback. This may be a good setup. Return to the uptrend. Look for signs of strength, don't buy into weakness but we would expect if all is going according to plan and the buying should reassert itself before we get to the 4300. So this could be something for next week is to watch for this drifting to lose momentum and for a return to the bull market. Jumping possibly quite quickly in that but to get back in again or to add if you've got a position already happily and the confirmation of course is going through 4500 that the uptrend is firmly underway and that the 4600 is in our sights. In Dexter we saw as furthest to the right on the RRG chart. It's really driven by a relatively small group of stocks of about 10 stocks sometimes called the Fang Plus stocks. The one furthest to the right here is NVIDIA making new highs powering ahead. It's taken in quite a bit meta and quite stable here in a good position and then all of them looking pretty good. But what ones are looking rising in the northeasterly direction? We've got Tesla, we've got Snowflake going easterly but Netflix going northeasterly, Apple heading southerly, Google southerly and Twitter southerly. Snowflake, Tesla, Netflix are good and of course NVIDIA is extremely good. Here is NVIDIA weekly chart soaring into the deep blue sky there. Once we broke the 350 level we released a lot of energy as we broke into new highs. You see the MACD there moving up very powerfully indeed. The RSI is still making new highs. There's high momentum on that. There's no bearish divergence yet. Of course anything like this can implode in a second. Any expectations are so high, any slight disappointment in the news can make this market recoil. But it's got undeniably heavy, strong upside momentum at the moment. We picked on earlier Amazon as one of the leaders and it's heading in a northeasterly direction on the RRG chart. It's broken through this important 115 level. It's bursting forward from its ascending triangle. There's a tiny bit of resistance at 136 but really the big resistance doesn't come in until 145. It looks clear for a shot at that. The MACD, very positive, very high momentum on that. RSI making new highs. This is a very strong market with resistance still quite far above it. In the group is also Snowflake and Snowflake is at a resistance point which it looks like it's going to break so this one could be starting. It's move up and could catch up relatively quickly. We've got higher lows in place here in the longer term pattern since for the last 12 months. Then steepling lately, we broke the downtrend line here, retested it and now we've got a consolidation at, now it's very important to get to detail on this. So 185 but there's a little spike high here at 194 and then we've got the high up here at 205. So these three levels here, one after the other, obviously if we do break up, will indicate that we're well on our way towards resistance. First resistance at 244 but I don't think that's too strong. Probably near a 300 would be the next serious resistance level. So just draw it to your attention, Snowflake. It may not be one that you're so familiar with but this one looks as though it's on verge of falling and it's got a lot of potential on the upside. And now we move to the foreign exchange market starting with a weekly relative rotation graph with of course the dollar right here in the middle. Anything to the right of that vertical 100% level is in a relative uptrend versus the dollar and ending to the left is in a relative downtrend and here we have most notably heading southwesterly that is weakening with also with low momentum continues to be the Japanese yen and the Japanese yen would be your choice I would say for any short side against perhaps another pair. I've been favouring, we've been favouring the Canadian dollar. Surprisingly pound flipping around here strengthening, holding euro weakening very slightly. Flicking now to the daily version we see that practically everything is on the right hand side versus the dollar except for the yen so in the shorter time frame we've got a little bit of turning down going on here even in the Canadian dollar and Australian dollar but the euro still pretty good angle but just a very slight blunting in it. There's a sterling cable on a weekly chart and see we've been in a strong uptrend really since September, October last year breaking through this support level rising little pause at the beginning of the year and then breaking through and then retesting moving ahead now then yesterday big day of course interest rate at the high end of expectations the next resistance is this formidable level at 130 and then I put 134 but we've still got upside momentum here the weekly MACD looked as though it was going to cross but didn't and it's moved up and show increasing momentum we've got higher lows in the RSI but we have got a bearish divergence high, higher, high, lower high in the weekly chart MACD is positive just hooking back very slightly on this easiness here that's this blunting that we saw in the RRG chart and then here we've got a very high reading and pulling down and correcting so what's the overall situation here for Sterling? I think that it's still in an uptrend it's moved down a bit but it's coming back to support which I'll put in here at this high which is a likely place for it to stop which is close to right where we are now do it carefully I conceivably see that if we're going to continue this pattern you see we broke the high then we retest it, break the high and then retest it and then move on up towards that 130 level so this looks good to continue despite the current easiness which you might see as an opportunity now to the weekly euro the euro is really consolidating it's consolidating with the rising pattern so we've got higher lows in place in here and higher highs in place here it's taking place around 50% of the fall of last year so it's churning around there it's being supported by this April 2020 low here and it's suffering from resistance at around 111 from this low here from January of this year the MACD, let's start with that is below its signal line but it's moving back towards it the RSAMI is steady it's just above 60% so not particularly strong so the longer term pattern here is that it's a little bit hesitant but it is generally in a steady, a gentle steady pattern something that we saw in the relative rotation graphs so it's steady but a little bit hesitant steady but a little bit hesitant tone in the daily chart too so here we have the higher lows pattern with higher highs also we've got resistance at 111 just a little bit of hesitancy right now big support also that we saw in the previous graph around 106.51.107 the MACD is positive here the RSI has just come this is the hesitant bit but it's generally very strong so it is hesitant at this formidable resistance which extends all the way up to 111 once we get through 111 then we're clear and away but it does look as though it's hesitant and going to continue to be hesitant around this overall 50% recovery level I think this one is probably likely to continue to stall for a little bit but eventually resolve itself to the upside but our favourite remains the Canadian Dollar we picked this up on the RRG chart when it was in the improving quadrant and now it's crossed into the leading quadrant and it's with the best trajectory of north-easterly direction and here it is having broken this series of lower highs in here this is on the weekly chart when it broke through 175 and now 176 and I think I see the resistance not coming in and a bit of a clear run up to 77 cents the MACD here the gap is widening so the momentum is increasing for it at this point the RSI is pointing up and heading in an upward direction the momentum is very powerful here too and I'll repeat what I said a few weeks ago which started when we saw this this strength in the Canadian Dollar and that one swinging round long tails looking good and looking like there was opportunity for our performance through that currency and then the very noticeable weakness in the Japanese yen something to look at is holding and if you haven't got it already but looking still with room to go against the dollar up to 77 cents where the resistance is quite tough starts to get quite tough and best of all is to do a pairing against the Japanese yen which continues to look bad and it's still pointing south-west in the relative rotation graph and so it can go much further I'll leave it there for this week thank you very much indeed for watching we will be back with you next week at the same time it will be I think myself but either myself or Julius de Campanar the directors of RRG Research thanks very much for listening I hope it helps you and may the trend be with you