Market MATH & Watchlist: 1-June-2025

Hard Money| Bias: We continue to trend up, but can have a real pullback/Shakeout

MATH: Momentum Anticipation and Trend by Homma:

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MATH last week: Click the link

The most comprehensive article on Breadth and Anticipation:

The 3 bulls framework for situational awareness

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As technical traders, we

“Anticipate, but confirm. Wish, but only react.”

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Trend:

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, we have pulled back to the 50 zone.

In the medium term, we are also cooling down and no longer over heated.

In the long term, we have broken out of the oversold zone and trending higher.

Momentum:

Homma Mswing Score: (basal Momentum)

Mswing score is bullish (above 50%) and over heated.

Landry Daily: (Momentum Bias for Swing Play)

Strong momentum (Momentum for swing trading) has broken out of a downtrending line.

It shows that Market regime has shifted for swing trading in the last 2 weeks.

Landry Weekly (Momentum Bias for Positional Play):

Landry momentum weekly is 3rd week up in a row.

We are going to Easy money environment for Positional trading too.

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Net4% Movers:

After the outrageous show of hands on 12th with a Net4% print of 61%.

The plot has been sideways since with values between 0-5%, which is mildly bullish.

We are consolidating.

This also explains a lethargic rise in the indices and Breadth-momentum perhaps.

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N50:

Just above the 21-ema.

It has been basing inside the 15th May candle.

We may consolidate further and wait for the 50-DMA to catch up or breakout of the base. Not sure.

In any case, the bias is of the uptrend to continue.

The possibility of a deeper pullback to the 50-DMA, or the Awaps cannot be ruled out.

That would bode well for the market.

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Anticipation:

So after bouncing off the 10-DMA (from the 3 tight candles) we have been slowly inching up for the last 5 days

How could things unfold next?

We have broken out of the previous swing high, but without a bullish thrust.

The inching up structure does not inspire confidence.

Having said that, we are still above all key MAs which is a bullish structure and gives us a bias that the uptrend might continue.

I am open to all possibilities.

Of the uptrend to continue, Or

for a longer base, or

A shakeout of sorts.

Positional bias = Hard money, Week 3.

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.

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Group Strength:

Sectoral:

Defence is still the strongest out of the pack.

PSU banks could start a fresh move up.

I anticipate the Private banks to follow suit.

Index:

Media gains strength.

Small cap and realty has been strong.

A spurt on the last day of the week has pushed PSU banks higher.

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Watchlists:

Follow the Strongest Stocks (the RS 100 and RS 100 Liquid watchlists below):

Find Tightness candidates from Tandem Inside bars and Tandem Low ranges.

https://www.sakatashomma.com/scanners

PS: Lots of Flags now. Some ready some still forming

Find my Tightness candidates from the Highest RS names below.