How I scaled in after the correction.
A complete SYSTEM level analysis
Today I share with you, how I am scaling back into the markets after this correction.
Less go.
How is it unfolding?
The correction ended on 13-14 March 2024.
We had a bounce on 14 March 2024.
My breadth signaled a very bullish force on the 14th. The net 4% movers scored the highest since the bull market started (image below).
So, I made my first position on 14 March 2024 with around 7% of my PF.
ITC. A large-cap name looking at the relative outperformance of the Nifty 50 and Nifty 100 names.
This position was unlike mine. I seldom trade a large cap. It therefore showed my ultra-defensive mindset at that point.
Although I had a very tight SL, I did not sell on the dip as I made some intraday gains on the 15th, the next day. (This is borderline fiddle-fecking with the system and can be injurious to health. I recommend you avoid this).
On 14 March 2024 after the market closed, my analysis said that the bullish force was huge. I developed a bullish bias for the short term. The best way forward was to look for these 2 kinds of entries:
PBA: Pullback Anticipations
PBC: Pullback Conformations.
On strong stocks that did form a tight area around the pullback area, the idea was to hunt for any Cheat Breakout entries.
My Top 50 Relative Strength watchlist was ready.
On15th March 2024, I entered 2 names:
Salzer Electronics: A PBA entry; ~8% size.
I had a GTT the previous night.
INOX India: PBA entry (or a hopeful PBC entry), ~ 10% PF
18 and 19 March were mildly bearish.
It was tough. But the reading on net 4% movers was encouraging as it was still only hovering around the 0 mark (see -2.65 on 19 March 2024).
Additionally, Salzer was acting up well and this was encouraging.
20 March 2024. The bounce came.
Net 4% showed a positive value.
Bias had now turned bullish.
I was now actively looking for a bullish follow-through signal the next day.
21 March 2024: And the signal came the next day.
In this video with my private group HPA, I show exactly what I was looking for and when the signal(s) came.
On a higher timeframe, we still weren’t out of the woods yet (more detailed analysis in my video above).
By the day's end, Salzer was up >15%.
The other 2 were around breakeven or slightly negative.
The breadth looked awesome. Net 4% printed a very bullish number ~ 16%.
My plan was now to look for low-risk Cheat Breakout entries.
I was more inclined to add to my existing positions rather than adding new names.
It is easier to handle less number of positions, especially with markets still dicey.
22 March 2024:
It was a fairly bullish day as shown by the Net 4% number printed (9.7%).
Since then, CNX500 has rallied up.
I added to both Salzer and INOX on this day.
26-27 March 2024 breadth data did not inspire out-and-out bullishness but markets were inching up and short-term breadth improving as seen by the momentum data making fishhook structures and inching up (see below).
26 March 2024:
I added my 3rd buy on Inox India as it broke out with a bullish candle.
Apar Industries also broke out of a decent base with a Homma Khela Hobe alert.
And I added my 4th stock.
I made an outsized position and sold 80% intraday and carried the rest ~11% of PF.
This position was risk-free that day itself.
27 March 2024:
Added my 5th position as Datapatterns when it broke out of a very tight area above the 21 ema with a relatively higher volume.
Summary:
I am ~70% invested with around 3.9% unrealized gains.
Hoping to glide with the pulse of the market.
That's all for today.
Effortless and profitable trading demands a SYSTEM.
A system that suits your personality and style.
If you want help in building that for yourself in the shortest time possible,
Sakatas Homma can help you in 2 ways below:
Join the Sakatas Homma TA masterclass for beginners:
A complete course containing 8 Hourly sessions. Once a year.
To register for the next live masterclass, please fill out this form.
Watch the 1st session of the Autumn 2023 masterclass.
To access the full 8 sessions, contact us via WhatsApp @ 9481506784
Homma Private Access membership:
HPA is a subscription-based educational service (on WhatsApp). Benefits include:
Daily Market Breadth, Momentum, Sector Rotation, and Relative Strength Update.
Access to all my scanners including the BBB (buy before breakouts) scanner.
Access to my breadth-Momentum-Relative Strength & Sector Rotation dashboards.
Access to my Trading view indicators: Homma Khela Hobe, Buy before Breakouts (BBB), Homma Endgame
Access to live Telegram alerts to Homma Khela Hobe signal.
HPA Weekly: Hourly weekend deep dives and Q&A.
1-year access to The Technical Take premium.
Live updates on my portfolio and the trading setup rationale.
Access to my high probability watchlist.
Yearly membership of 15000/- INR only.
UPI payment & WhatsApp @ 9481506784.
Yours
Sakatas “SYSTEMS” Homma.