 Hello traders at CMC Markets. Welcome to another update for Monday the 17th of July. I'm recording this on Friday the 14th of July. My name is Trevor Neal. I'm a search analyst at RRG Research and I'm coming to you today from London. Today we're just going to have a brief look at asset classes to make sure that we're in the right area focusing our money in the right areas of the market where there are opportunities and then we're going to have our usual round of looking at the global stock indices but then the big one I think I'd like to cover today is in the foreign exchange market after this big move downwards in the dollar and how that's looking on the charts. Now this is a relative rotation graph showing assets but as defined by ETFs. So we can see the furthest from the right and the only one in the leading quadrant is the S&P, the S&P spider and heading still heading easterly here. So that's a quite outstanding picture there. The Europe going all the wrong way. We saw that weakening several weeks ago. This is a weekly chart by the way and it's going absolutely in the wrong direction heading south-west of it. So weakening in terms of its ratio against the MSCI world which is the benchmark that we're using here and likewise the same with gold. Look at the length of the tails here. Very long tails. So sweeping from the weakening quadrant that we recognize that they were weakening and now into the lagging quadrant. So America the place to be, Europe and golds for the moment not the place to be. The interest rates, bond market are also a big pressure there. The commodities furthest to the western here spiraling around in a circle over on the side here. So still the opportunities are not in that sector as a whole. And then the small cap, long tail here so it swept around very quickly from the lagging quadrant into the improving quadrant. It's heading north-easterly so it's improving in both momentum and in ratio but it's still too far away in my opinion from the 100 level to draw any conclusion that it's going to be the next big thing. If it was around here and doing that then I'd say it is but it could too easily turn back down again. But at the moment there's an outstanding message which is the best area to concentrate on is the US stocks. Looking at this another way very briefly. This is with the major global indices and we see that of the US stocks the NASDAQ is clearly still the winning one. The tail is a bit short here but it's still moving in generally the easterly direction means it's getting relatively stronger compared to the average of the stocks of the MSCI world. The Nikkei 2 is good turning around a little bit but that's benefiting from the currency. The Nifty has moved across into the leading quadrant so that's something that Julius picked up a few weeks ago about heading. The S&P is if you like okay. The Dow is a lager there. The Russell 2 it's heading in the right direction but it's way way behind. It's very focused on the technology stocks. The European stocks bunching up together. The UK even worse but they've moved from the weakening quadrant into the lagging quadrant and the Hengsang is still unfortunately the weakest of the lot. Now it's the daily chart of the NASDAQ and we've had a tremendous burst as we broke through two important resistance levels. This is from the April 2022 so March 2022 high here 15,229 it was then it caused resistance back here in June. We came back rallied to the previous high so very typical thing to do in uptrend impulse reaction to the previous high and then up again retest bit of a wobble concerns waiting for important CPI data and employment data fall back and they're now blasting through it here and absolutely strong. So this now we come back to the high of the end of 221. The high itself was 16,799. It wasn't if you can remember it was a head and shoulders top high higher high lower high in here and then we broke these two lows in the market fell away very very sharply down to its minimum price objective but that left a consolidation area here pretty close to where we are now 15,590. These two lows in here extending up to before we get to the high of 16,388. So this is an area it should provide some resistance so although we're moving up like a missile right now we should see some resistance here. If it continues to behave this strong that RSI there absolutely rampant behavior there. If you bring it like this and look at a chart like that it's it really looking as well. It's nearly crossing over it will cross over as well. So lot of power beware that some resistance ahead but it's got a look on its face that is very bullish and looking like intent to make new highs but just beware that ahead of it is there may be trouble ahead but look at that pattern there it's a thing of beauty isn't it. Higher lows pulling back every time to the previous high and then holding and then going up. It's a lovely long-term uptrend. One for your album your technical analysis album of beautiful chart patterns. Just a brief look at that neglect your child the hang saying because signing the chart here you saw in the in the ROG it was around in the lagging quadrant there but turning around a little bit here and it is looking like it might be doing something to improve itself on a relative basis of course it's still in the downtrend when other things are in an uptrend but we've we've put in a low low low and then a higher low. We've got a series of lower highs I've put a dashed line in it because they may be they're not lining up correctly but they are lower than each other but watch for a break of 20,000 that round number of 20,000 there that might bring in buying and quickly flick around with a long tail and improve substantially so there might be some potential from this underdog security for some rapid correction in it that might be close. I think it might be close. Now the relative rotation graph this is going back to a weekly sampling of the Fang Plus group of stocks the top 10 stocks and the outstanding one is still in video our old friend there. MD is looking pretty good Tesla has come round really substantially here long long tail here so we did pick that up the other ones are all outperforming the averages of the of not the average S&P itself so this is the best area to be they're all in the to the right of it but not really showing great sort of independent strength in the way that NVIDIA is and Tesla is as well. There's a daily chart of the NVIDIA we're in a deep blue sky here this is the previous high that line there and we gap through it very powerful message and it really is soaring up we had to pull back here to the previous resistance which was support and now we burst forth strongly through it the the MACD which had crossed over downwards and we get back to it here is about to cross upwards again saying the reaction is over I think we know that but the RSI it showed it better by coming back to 50 and then rallying from from below 50 40 that's the correction correction complete when it lifts off from there and so that was in here that it said the correction was complete and now we're soaring up strongly and it's high yes it's close to 80 but the it's high and it's going up and it's getting strong and getting stronger so it's still very strong indeed it's a remarkable story this one since that October 2022 low that we had there and looks like it's going further deeper into the stratosphere here's a ROG chart of the daily sampling of the major currencies versus the US dollar and big switch around here two weeks ago I cautioned that Canadian dollar Japanese yen today looked to be over and the Canadian dollar has come right round from the leading quadrant into the weakening quadrant the Japanese yen which was heading southwest and in the lagging quadrant swiftly with a very long tail flipped around and just moved into the leading quadrant so good time good job we've got that message that that long long time good trade pair was finished but now we've got the leaders here are the pound the euro and the swissie and we've seen the the effect of the fall in the dollar best I think in the euro and the pound the euro has broken through that that resistance level the years with highs of roughly 111 and then it's surged through and it's now back at the best level since February 2002 it's even cracking this resistance now and it looks really set in to go up to the 115 level I think this is looking exceedingly strong supported at the highs the breakout highs 111 I would say it was and then we have the indicators have gone very bullish at this point this breakout point and you see the gap on the MACD is widening as we're getting more upside momentum and with powering ahead on the RSI small amount of profit taking possibly in the short term but still a lot of momentum here and now I think it is targeting that 115 level and finally the pound the pound soaring through its minor resistance at 12850 also there was resistance of 130 big round number and series of lows there crashed through that and it looks set now to go up to the 132 70 132 80 it's a sort of zone there but that's where the first major resistance comes in it's supported at 12850 it's got a nice impulse reaction impulse breakout return to the the previous resistance now support and and then breaking out strongly here the MACD is very positive and the gap is widening so it's getting increasing momentum on the upside and it's moving up a little bit of profit taking in there but it's still looking exceedingly good and really I do think that we're headed towards that 133 level there and the March 2022 high as well I will leave it there for this week and thank you very much for watching we'll be back with you the same time next week it will probably be Julius I'm present I have presented to you from London so it's goodbye from Julius and I who research directors at RG research and may the trend be with you