Market MATH & Watchlist: 29-Dec-2024

Bias: Of a Bounce

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”

Short-term we are bouncing from the oversold level. The 5-DMA crossover is done.

Momentum: Homma Mswing Score

The Mswing score and Landry Score are still on a downtrend.

Landry:

N50:

The index is now consolidating just below the key MAs.

N500:

Same as N50.

Net4% Movers:

The Net4% plot remained neutral to bearish levels throughout the week.

Anticipation:

The midsmall400 has tightened up around the 50DMA with long-tailed candles.

The expansion after contraction can come from either side, but I am biased towards the upside.

I am still looking for more breadth confirmation. The earliest signal i.e. “5-DMA crossover of the “% of stocks above 10-DMA” is in.

1. The “% of stocks above 10-DMA” crosses above the “% of stocks above 20-DMA”. I learned this observation from Nitin recently).

2. The Mswing and Landry momentum plots to put higher prints.

3. The Net4% to print positive scores.

Speaking out loud, these signals can come Monday.

Therefore, be ready with your actionable watchlist.

Sharing mine below.

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Group Strength:

The strongest groups:

Index:

Nifty Health and Pharma showed strength amidst the weakness.

Groups:

EMS is the strongest of groups.

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Watchlists:

Follow the Strongest Stock (the RS 100 names):

Watchlist(s) below