Market MATH & Watchlist: 14-March-2025
Bias: Of a continuation of the downswing
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:
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”
Downtrending in all timeframes.
.
Momentum:
Minor improvement but still non-existent momentum.
Landry Daily: (Momentum Bias for Swing Play)
Minor improvement but still non-existent momentum.
.
Landry Weekly (Momentum Bias for Positional Play):
Still trending down.
This plot must start trending upward for an easy-money environment to sustain positional trading.
INDICES:
N50:
Downtrend.
Price bounced off the Avwap from 2023 March lows.
Now tightening around/below the key MAs.
Potential of a higher low.
Net4% Movers:
Bearish numbers throughout the week after the bearish reversal day on the 10th of March.
Bearish strength has been decreasing each day.
Anticipation:
So we are on the 4th day after the bearish reversal. How could things unfold next?
Firstly, we are still on a downtrend.
Therefore, the bias remains that of the continuation of the downtrend.
And it will continue to remain so until we make a clear higher low around the current level.
Any bullish views will open up only when we make a Higher High (marked on the chart below) which signals a trend change.
A bullish day will change my bias towards a Trend change.
But for now,
Still No Money for swing and positional traders.
PS: Anticipations are often wrong and bias 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.
Group Strength:
The strongest groups:
Index: Metals
Groups:
It is difficult to put a pin on a specific group while the market is on a downtrend.
If still trading, best to take a bottoms-up approach by looking at individual stocks from the relative strength list.
Watchlists:
Follow the Strongest Stock (the RS 100 names):
Intraday tradable names would be found on the Strong Start candidates every day:
https://www.sakatashomma.com/scanners
Watchlist(s) below
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