[COPY] Market MATH & Watchlist
19-June-2024: We have a short-term TOP
MATH: Momentum Anticipation and Trend by Homma:
Last MATH update: Click the link
As technical traders, We
“Anticipate, but confirm. Wish, but only react.”
Trend:
The earliest signal of Trend Change is IN.
10sma plot crossed below its sma5
Momentum:
ADX-momentum in multi-timeframes signal exhaustion.
See the Plot flattening out or curving down.
N500:
On a daily, we have a bearish engulfing.
Akin to what we had at the beginning of every minor correction.
On the intraday timeframe (25 minutes), I would even argue that we have a nascent downtrend with an LL-LH in.
Net4% Movers:
The Net 4% prints a lower value today but still a bullish value.
For the first time after the 4th of June, on average N500 stocks gave a negative return today. (See Z%)
Anticipation:
We know that the momentum slowdown/stall started today.
What we don't know is how low it can take the stocks i.e. how deep the pullback can be?
One area of support is the Ascending channel resistance (now as support).
As long as that area holds, we will be fine (even better) in the medium term.
I believe select sector-wise move will still be on for short-term traders to take advantage.
But in general, expect your swing trades to not work as much as they had in the last 10 days.
Lastly, we anticipate but only REACT.
That’s all for today.
I wish you the best for the week
& I will see you soon.
Sakatas Homma