Market MATH & Watchlist: 13-Dec-2024

Bias: Bullish but with Higher Volatility untill we breakout of the recent swing highs.

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-DMA”

Medium-term: “Percentage of stocks above 50-DMA”

Long-term: “Percentage of stocks above 200-DMA”

We pulled back in the short term and are holding right at the 50% mark.

Medium and Long term are above 50% bullish levels (but have crossed below their 5-DMA).

Momentum: Homma Mswing Score

The Mswing score is above the 50% mark which is bullish.

Landry's score is sideways above the overbought zone.

N50:

Pulled back to the key MAs.

It had a shakeout below all key MAs and bounced right off the Avwap from the recent November 21 low. This action is inline with the anticipated price action during an uptrend.

Now above all key MAs and above the Avwap from the ATH.

Both signals are positive.

N500:

Same as N50.

Clips all key MAs and bounces hard.

Net4% Movers:

Had another strong week.

The second half of the week showed weakness but closed the week with bulls asserting control again.

Anticipation:

As anticipated, we did pull back to the key MAs and found good support at the levels.

We also had a great-looking shakeout action to close the week.

So sentiments going to the next week will be positive.

But I want to make clear that we are at a key juncture here.

Expect volatility. The sellers will not give up easily.

Bias although is bullish now.

But more confirmation will be on the break of the swing highs.

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Group Strength:

The strongest groups:

Index:

Nifty IT is still the strongest.

Consumer durable regains strength.

Groups:

Textiles dominated this week.

EMS did well and remains a strong group.

Defense and Railways are now coming back into favor.

Telecom was another sector that found favor.

The financial services sector related to the Stock Market remains strong (BSE, CAMS, etc)

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Watchlists:

Follow the Strongest Stock (the RS 100 names):

Watchlist(s) below