Market MATH & Watchlist: 25-May-2025
Easy Money| Bias: Resumption of the Uptrend
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.”
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 cooled down and Bullish.
In the medium term, we are also in the overbought zone and cooling down.
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 cooling off.
Landry Daily: (Momentum Bias for Swing Play)
Strong momentum (Momentum for swing trading) has broken out of a downtrending line.
It shows that easy money is on its way.
Landry Weekly (Momentum Bias for Positional Play):
Landry momentum weekly also has a breakout follow-through.
If we have a 2-3 week of increase in Landry weekly, we will have Easy money environment for Positional trading too.
Net4% Movers:
After the outrageous show of hands on 12th with a Net4% print of 61%.
The plot has been sideways just above the 0 zone.
We are consolidating.
Neither bulls nor bears dominate this week.
N50:
Bounced off again from the 21-ema.
We may consolidate further and wait for the 50-DMA to catch up or just continue the uptrend. 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 Swaps cannot be ruled out.
That would bode well for the market.
Anticipation:
So, after a 6 day Upswing, we are now on day 4 of the consolidation/pullback. The pullback came as expected (coz death, Taxes and PBs….)
How could things unfold next?
We are basing within a clear base now, with the 10-DMA acting as support.
We may breakout, consolidate more and wait for the 21-ema to catch up or even go for a deeper pullback.
We cannot be certain which one would play out.
Firstly, be absolutely okay with this amount of uncertainty.
Secondly, as long as we are above the key MAs, the bias for the uptrend to continue.
If 10 supports, the start of the Uptrend is very strong.
If 20 support, mildly strong.
If 50 is required, we may trend up, but with a bigger base building first.
Note: Last 3 tight candles tells me it could have an inkling towards a bounce soon.
Positional bias = Hard money, Week 2.
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.
Group Strength:
Sectoral:
Consolidation week with a paltry move across sectors.
Defence and Banks still strong.
Railways look poised to breakout of a reversal base.
Some other groups strong and might be set ups as flags:
: Cements, Sugars, Wires, Pipes, Packaging, Bearings, Graphite
Index:
Smallcaps, Realty looking to gain strength.
Large-cap outperformance could be coming to an end.
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.
This Weekend video is on:
Quick Indices check
Actionability Comes where and from what?
Anticipating Strength
Where is which sector/group.
Positional vs Swing trader: where is the actionability?
Go through the watchlist: In no particular order.
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