Market MATH & Watchlist: 10-Nov-2024
Previous Support or gearing towards the H&S Target?
MATH: Momentum Anticipation and Trend by Homma:
MATH last week: Click the link
The most comprehensive article on Breadth and Anticipation:
As technical traders, We
“Anticipate, but confirm. Wish, but only react.”
Trend:
Medium-term: “Percentage of stocks above 50-DMA”
Makes a lower high and is below the 50 bearish mark. Only 32% of stocks are above their 50-day SMA.
The short-term breath topped and now looks to dip into bearish territory.
Bearish bias.
Look for a higher low in the medium-term trend for bullish signals.
Momentum: Homma Mswing Score
After bouncing from the oversold levels (the small and microcap rally), the Mswing Score is still below the bearish level (below 50). It curled down and has now crossed its 5-DMA to the downside.
Landry's Momentum score is also languishing at low levels.
Bearish.
N50:
Multiple scenarios that can play out:
Nifty finds support from the previous bounce level and Bounce, we have a double bottom breakout.
Finds support but spends time sideways.
Support does not hold and Nifty heads towards the H&S target.
It is difficult not to lean towards the second & Third possibility right now.
The Key MAs are now acting as resistance too.
N500:
The latest swing high could be construed as the Right shoulder of what could turn out to be a bigger H&S. If that breakdown materializes, the pattern target would be deeper.
Anyways, both key Indices are hugely bearish right now.
As long as they stay below the key MAs (more so the 50), the bias will be bearish.
Net4% Movers:
Bearish.
Baring the one big positive print on the 6th (reaction to Trump’s Triumph), we do not have any dominance by the buyers and the week closed bearish.
Anticipation:
Below is what was anticipated 2 weeks ago in MATH.
Key MAs have now turned into resistance.
Going forward, the bias remains the same.
As long as we are below key MAs (especially the 50DMA) bias will be bearish.
Group Strength:
The strongest groups last week:
Index:
IT
PSU Banks
Healthcare (the hospitals)
Watchlists:
I am mostly trading the stocks that Start Strong. Since these past weeks have been result season, they also inadvertently happen to be Earnings Pivots.
You can find them during the first 5 minutes of the day using the scan Strong Start on the scanner section of my website
last Friday’s list. I traded Inox India.
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