 Hello traders at CMC Markets. Welcome to another RRG research update for Monday the 24th of October. I'm recording this on Friday the 21st. My name is Trevor Neal and I'm presenting to you on behalf of RRG Research from London. As we do every week let's start with a look at what's going on in the major stock markets of the world and see if we can pick out some opportunities. Well we see a pretty remarkable picture in the weekly relative rotation graph of major global indices versus the MSCI world index. That's our benchmark here. The remarkable picture is that we see every index apart from two is in the leading quadrant so outperforming the global index. The two that are not are the NASDAQ and our poor friend the HangSang which we've given a lot of attention to as a weak index in our updates of recent weeks. But look at this everything is got its arrows in the leading quadrant. This indicates that of course particularly the ones that are heading northeasterly are gaining in strengths with good momentum if they're heading higher as well as right and also those with long tails like the Australian index the AS51 the ASX 200 are doing so with power. So we're going to actually focus on this one today. The Japanese index the Nikai remains strong as it settles again in the leading quadrant returns into the leading quadrant it had been in it and it's returned in again there. Over here on the left is the poor old HangSang in the lagging quadrant and not still looking very good with this westerly direction. I know it's northwesterly but westerly direction so still the JDK-RS ratio is looking like continued to tier 8 and so therefore continue to underperform. Switching now to the daily RRG of the same indices versus the MSCI world we see basically a confirmatory message here. The HangSang most strikingly is heading now southwest in this time frame switched back to moving southwest at any sort of bounce and that seems to be over and so in the daily time frame it's very poor indeed. Also the NASDAQ as well poor everything except for the Putsi is in the leading quadrant and the Dow, the DAX, the CAC all looking good in there and furthest to the right is the Australian index. Even the UK 100 is in the weakening quadrant but it's heading northally so it's with increasing positive momentum and it still is right over 100 points so essentially this message confirms the weekly message so it's as if the wave has moved back in the direction of the tide. The Australian ASX200 bounced strongly from 6400 last time in September and has met some short-term resistance at 6800 but it's still holding steady and potentially could be challenging the 7100 level quite soon. We have still got lower highs in intact in here but it's a good base here at 6400 but what is particularly impressive is that the MACD line here moving average convergence divergence the MACD line is rising sharply and also the signal line is rising sharply too and the gap is widening so this is the best-looking index from a relative rotation graph perspective and the chart itself is looking fair as well. A break of that 6802 tops in there would indicate that we would follow with an attempt on the 7120 high level. Last week Julius ran a scan of the ASX200 index according to our criteria. You will remember that our criteria we're looking for a scan of securities in that universe that are above their 10 day simple moving average so I'm moving up in the shorter term have turned into an RRG reading between 0 and 90 degrees so in the leading quadrant are showing increasing velocity so the length of the sample between samples is increasing so it's speeding up. He on the 14th picked up three stocks which were EGAS Automotive, WebJet Limited and WiseTech Global Limited. The one that Julius liked the least it looks like it has the greatest potential now so because the index itself has moved up they've all moved up but the one that he liked the least is the one I want to look at this week. To quote Julius from last week he said out of the three results the one that is least convincing for me is WiseTech Global Limited. Although it ticks all the boxes for inclusion it doesn't look like a strong chart now I think that the picture has changed. It is true to say that the uptrend from the July low has been broken and we had a failed attempt leaving an island of the breaking of 60-20 and pushing into the spike top which is as I said an island reversal top which can be a major reversal pattern. We came down and we broke the support or tested the support at 54 and breached it but have bounced strongly from it and we now have a rising lows pattern in place and we have these two tops in here at 5840 and I think that a break of those 5840 tops could give us a new move to attack the $60 round number and maybe potentially on to take out our island top. The rising lows pattern is constructive the support at 54 is strong but the main reason is that the MACD here has turned up through its signal line which is also rising and the gap is widening so this is showing a rising market with increasing momentum. So on this absolute chart of WiseTech Global the situation has at the very least stabilized but actually is showing signs of rising so this one which was the last and the laggard of the three that Julius chose now seems the others having steadied now looks ready to join the group. To conclude this laggard in the RRG choice scenario of Julius ran last week now looks to have the best potential for those who have not yet jumped in on the outperformance of the ASX200 as a leading global index. I'll leave it there for this week everybody I thank you very much for watching we will be with you again same time next week at the same place goodbye from Julius and I of RRG research and may the trend be with you.