 Good morning and welcome to today's products and focus and it's a it's another Monday morning and Another start off a financial crisis potentially with China selling off almost 5% again Heading towards its close and that comes hot in the heels of a rather impressive non-farm payrolls number on Friday Where we had two hundred and ninety two thousand jobs versus two hundred thousand expected Which is one of the best non-farm payrolls that in recent months And to smash expectations by such a high number should be a cause for for cheer not for negativity But nevertheless towards the end of the close on Friday a lot of the global markets were kind of coming off And then this morning the Chinese government raised guidance for you on again Which you would have thought would help stabilize the markets They kind of did you know the Chinese markets drop maybe about 2% and then it's only when you get a little bit closer towards the end There's more kind of commentary in social media and newspapers Talking about the lack of confidence in the Chinese government to manage a financial crisis at this stage You know they make a decision and then they reverse it and then they do another decision And then the first sign of trouble they reverse it again So you'll see this is a common theme over the next couple of weeks as in what what can they do? That's going to be effective to support the economy They're trying not to get involved in a currency war right now But there's a there's a lot of issues with the with the Chinese economy because there's so much now that could go wrong It's ballooned to such a massive size. It's had an incredible Couple of years, but where we are right now Actually after all these sell-offs that we've had in the last couple of the last two weeks for the the Chinese stock market now is currently at four year low and That means that basically a lot of the stock investors in China are not that happy With that the way things are going right now and as we discussed there last week the circuit breakers have now been removed But that doesn't seem to be kind of stemming the stemming the bleeds so to speak So that's currently where we sit great news out of the UK. I have the US sorry with non-farm perils But then China has really struggled so far this morning The real interesting piece from my perspective as well So I'm quite big into Fx is the lack of movement by the US dollar following the NFP The fact is many commentators still believe there's going to be three more interest rate of hikes in the US in 2016 With all this turmoil that we're seeing right now in the markets That seems like a bit of a tall order right now and the US dollar really is actually if you look at cable Which we'll look at in a second the new dollar We're actually seeing a little bit of a reversal in the USD and a very common theme as well People are selling the US dollar to buy the Japanese yen It's the yen and gold that are the safe havens against uncertainty specifically the Japanese yen has been quite popular So that does give you a bit of an insight as to the themes currently Evolving in the market, but let's go ahead and have a look at the technicals now and as ever we're going to start off with the US 30 so right now what we're actually seeing is 65% of seems to mark clients for short So they're also expecting for the downside and you can actually probably just see on here The negative moves that we've seen this was after non-farm perils for the market initially spiked higher only then to lose momentum Completely and then drop negative and we've actually been a lot lower this morning We've had a little bit of a bounce, but make no mistake that next potential support level is the only support level around And that's a close to 16,000. That's about 300 points less than where we are right now RSI is oversold, but there's not yet any signal to buy it's just gone through that That 30% level, but it's still showing there could be further downside to come So that's where we are with the US 30 With the bottom of this area right here. This could be seen as a short-term potential support But we have a whole days worth of trading before that low is confirmed to look forward to Then having a look at the UK 100 very different very different picture in regards to The view of seem to markets clients 86% of our clients are currently long What I'm just going to do is I'm just going to remove that other the other technical analysis And what we're going to do is have a little bit more of a look at this and more detail And what you can really get here is an idea of a potential support The fact that we broke that already and you then can really look at the tips of these candles right here For those next levels now if I go ahead and get my other technical studies on there Like my MACD my RSI and also my slow stochastic Which is some of the favorite ones that we like to use here at CMC You can get a bit of a flavor that the RSI is not yet going into that oversold area It's very very close to at the moment very ugly candle that we had there On Friday, we were much higher on that UK market pushed all the way back down to negative We got lower this morning and then we pushed on higher now We're a little bit of the session lows But you can get a bit of a flavor of where we are in fact I'm just going to remove that and you're probably looking at the tip of this candle here So one two three four five and that's where we are So we actually get lower and then pushed higher So as long as you stay above 5895 the UK 100 Is not that bad. This is a really ugly candle to have here though But we start to trade lower later on today to trade below 5893 That would be seen as from a technical analysis perspective as quite negative And then you'll be looking at 5769 as a next potential support level Moving on to Japan 225 next And a very kind of similar picture Where let me just go ahead and push this out You had a gap lower And let me just go ahead and get my support levels drawn on here again So if we get the drawing tool normally I would take the tip from here And you can see you've got one bounce two three Didn't have a close below that and pretty much bang on the fourth one there again And adding on the MACD and the RSI and the slow stochastic You'll see that we have an extended move to the downside We are in oversold territory But what you're not really getting right now is that reversal signal It's not breaking back up through right there But 17,000 303 17,172 sorry is the potential support And we are a little bit above that just now Off the session high So it is getting pushed that little bit lower And CMC clients have a 51% long position Moving on to on to dollar yen now And again having a quick look at this A similar kind of pattern where we have had We do have currently have a hammer formation on this FX pair So moving out you can see an idea for the potential support levels are So get my drawing tool out here And you would move you move along here Initially you might have seen a level running about here And then you have to go along to a further side to here And then potentially I'm going to say Yeah, you know what I'm going to take this level right here As as a next potential support run about one 1680 And again getting the MACD and the RSI and the slow stochastic out We can get a bit of flavor as to the other technical areas Oversold not massive surprise when you have a look at the chart But you can get a bit of a flavor of those moves And the fact that it's bounced off there is already this morning And pushed into positive territory Gap lower obviously over the weekend So that's one 16 spot 80 is a potential support The next potential resistance is one 18 spot 33 And unfortunately we're a little bit away from there right now But that does give you a bit of a flavor 56% of seems markets clients are currently long on US dollar Japanese yen So now moving on to West Texas crude And West Texas crude is a bit of a tough one Matter of fact if I just add that one to here And that should give you a bit of an idea of that of that technical picture Get my drawing tools out And you draw your support level one of your support levels here And then we have to go all the way back onto my monthly chart Just to get any flavor any other flavor of those other potential support levels Obviously we're a good bit away from there at the moment And then move I'm going to move this all the way down to It's maybe about $26 and change Let's do 25 71 at the moment Is there any other potential support levels that we can look at It's pretty dire to be honest 26 that's the correct one So 26 73 is the next potential support I'm going to go back onto my daily chart there for a second And you can just see how far away we are from that And you are going to have potential short term support at the tip of this candle So I'm going to quickly draw that one on there And if we do get a move to the upside now Arguably you could be looking at the tips of these candles here So we're in about 33 69 as potential short term potential resistance And just a little bit below where we are right now A little bit maybe 31 70 31 50 That's where the bottom of this candle is That could be your next short term potential support So that does give you an idea of where West Texas Crude is 92% of our clients are currently long on this product So then moving on to gold And then finishing up with the FX pairs So moving on to gold You do get a bit of an idea that we have been moving up higher Again, getting my support levels out We were able to break through some significant Potential support slash resistance Round about $1,100 And you can just see the volatility that we've had all the way around here So we were much lower there on the Friday Push back up still negative for the day But at least we managed to get our head back above one on one Or $1,100 The tip of this candle and the tip of this candle Is indicative of each time I try to push up that little bit higher You are getting kind of selling pressure pushing it back down $1,100 on gold is a psychological level as well A lot of people are going to be talking about it Has the safe haven appeal Also, if you're looking at interest rates not getting raised Quite as frequently as some traders would think Gold has some potential But the fact is it's not really doing a huge amount so far this morning 54% of our clients are currently short It's almost 50-50 There's still a lot of things that need to happen Before clients get more confident about this But certainly from a safe haven aspect It still has some appeal And then finishing up with your dollar GBP USD Eurodollar has been in this kind of downwards trend for a little while But on Thursday and Friday You can see the tip of this candle here getting pushed right back up Very, very volatile session there on Friday Where it sold right off as the dollar started to gain momentum And it almost gave up all of those gains before the end of the session So if we look at this from a technical analysis perspective Where are the core levels? Well, there we go right here You're still potentially looking at round about one spot 0-8 As a significant level I'm going to do my sloping trend line here So I'm sure that's going to come into play at some point in the future And arguably I think you could take a point from here And apply it across here potentially And then you are looking right here And probably we're a good bit away from there right now actually I'll leave it for there at the moment And this is currently where we can set where you might have a sloping Resistance there to look forward to The tips of these candles you've got a high lower high lower high We're not breaking up necessarily at that higher And already for your dollar You are towards a bottom end of that range With the rejection of that move to the upside You can just see by the long candle right there where we are 66% of CMT Markets clients are currently short And then finishing up with GBP USD We are looking at 86% of our clients are currently short on this And you can see quite clearly when you get your SR line And you just add it right here That we were on the wrong side of that level just now Let's go a little bit further back to see what that next potential support level is Right So you are going to be adding this level on down here 142.30 is the next level And then the tips of these candles down here That would be the one after And you can just get an idea Poor cable hasn't had a great run It's been in a downwards trend for quite some time We are on the wrong side of one spot 45 And change right now closing down That's on the weekly chart So let's go back onto the daily And you can just see it's broken below there And already the tips of this candle here Try to push up that level a little bit higher Only to fail So we've got a dodgy formation at the moment 86% of CMT Markets clients by monetary value Are currently short on this index In regards to the market calendar guys There's absolutely pretty much nothing of excitement to look forward to today Let's fast forward on Tuesday You've got industrial production in the UK Wednesday gives you more Chinese data That trade balance data is going to be very important guys So make sure you don't forget about that One if you've got your open positions And then you've got your petroleum report And some Chinese, some Japanese data as well And then Thursday gives you interest rate announcements From the Bank of England And employment claims from the US And let's just finish up Friday just for fun US retail sales, industrial production And the University of Michigan Consumer sentiment index as well Well guys that is it for today A kind of interesting start to the week Very good luck with your trading And join me again tomorrow To find out what happened next Thank you very much and goodbye