MATH: Momentum Anticipation and Trend by Homma:
MATH last week: Click the link
As technical traders, we
“Anticipate, but confirm. Wish, but only react.”
"Skate to where the puck is going to be, not where it has been." ~ Wayne Gretzky
By anticipate, I do not mean “make positions earlier”. What I mean is, assign probabilities to all possible scenarios of what could happen next. Stack those probabilities when those scenarios unfold. And change (increase/decrease) your risk exposure according to changing (increasing/decreasing) Market breadth.
And be mentally prepared with the (your) response. It is a mental exercise. It helps you act faster when the confirmation eventually comes in.
Lastly, be okay with any result/possibility that comes next.
Short-term: “Percentage of stocks above 10/20-DMA”
Medium-term: “Percentage of stocks above 50-DMA”
Long-term: “Percentage of stocks above 200-DMA”
In the short term, bullish.
In the medium term, bullish and improving.
In the long-term, bearish but improving.
Momentum: Bullish
Homma Mswing Score: (basal Momentum)
Bullish and improving
Landry Daily: (Hard Momentum. Momentum Bias for Swing Play)
(Landry Momentum plot is lagging in nature).
Bullish. In a upswing.
Landry Weekly (Momentum Bias for Positional Play):
(Landry Momentum plot is lagging in nature).
Bullish reversal
Net4% Movers:
Bullish.
N50:
A bullish reversal from a historical oversold level. And from supports off the Vwap and swing low supports with a high volume.
Bias has changed to bullish.
Bias of a higher low.
Anticipation:
Midsmall400
A bullish reversal off a historical oversold level.
Price is now above the 50-DMA.
Bias is now bullish.
A Higher-low here, with the Moving averages alignment turning bullish (10>20>50) will signal a change to an Easy Money environment.
Positional bias = Hard money
PS: Anticipations are often wrong, and biases should be adjusted after every candle.
If you dont know this already, I update my Market MATH every day on my website under the BREADTH section. Please check in every day post-market.
A quirky Bull Market indicator:
One that tells you for sure when a bull market is in.
One that eases your anxiety and assures you that the market will NOT take off without you.
One that keeps you from jumping in too big, too soon.
One that keeps your expectations in check, IF you are still trading.
(link to the indicator at the bottom)
Observation: Easy signs of bullishness coming. If you couldn’t build a meaningful size, do not fret. If the bull market is beginning, this would only be week 1.
So is the Bull market in yet?
Group Strength:
A weekly Mswing >50% and rising is bullish; <50% and falling is bearish.
Sectoral:
Leading groups: Power/Energy-related, EV-related Autos
Most Bullish this Week = Telecom, Realty, Defence
Strength continuation =
Bottom Strength = Telecom, Realty
Sectors/Groups I like as LRE = Electrical products-power related.
Index:
Mswing above 1% (and rising) is a positive momentum.
Leaders = Metals
Most bullish this week = Realty, Auto
Indices I like as LREs = Defence
Watchlists:
Follow the Strongest Stocks (the RS 100 and RS 100 Liquid watchlists below):
Find Tightness candidates from Tandem Inside bars and Triple Tight Star scan.
Earnings/Tradable Gaps are caught by the scanner TGP (tradable Gap Pivots).
Homma scanners: https://www.sakatashomma.com/scanners
When market regime is Hard-Easy Money, find the lowest risk entries from the leading strongest groups in my actionable watchlist for the week below.
Winners will be in the High Momentum List- Mswing.
Current Market Regime: Hard MONEY
