Market MATH & Watchlist: 22-Feb-2025
Bias: of a downleg
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 and at oversold levels in all timeframes.
.
Momentum:
There is no momentum whatsoever. The counter-trend bounce could not take the momentum to even the previous highs.
Landry Daily: (Momentum Bias for Swing Play)
Same as Mswing. Languishing at the bottom.
.
Landry Weekly (Momentum Bias for Positional Play):
Trending down.
This plot needs to start trending upward for an easy-money environment to sustain positional trading.
INDICES:
N50:
Downtrend.
Clinging to the channel midline. A meek bounce towards the channel top or a breakdown towards the channel bottom is possible.
N500:
Downtrend.
A meek bounce from the channel support is met by the falling 10 MA.
Net4% Movers:
A small bounce for 2 days with a bearish close to end the week.
Anticipation:
So the anticipated oversold bounce lasted for 2 and a half days. How could things unfold next?
There is no momentum whatsoever in the market. The bounce had no strength at all. Nifty is going sideways and looks to break down to scale new lows.
As such, I anticipate a quick further down leg.
Still No Money for swing and positional traders.
PS: Anticipations are often wrong and bias should be adjusted with 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: NA
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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