Market MATH & Watchlist: 29-Dec-2024
Bias: Of a Bounce
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-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.
The “% of stocks above 10-DMA” crosses above the “% of stocks above 20-DMA”. I learned this observation from Nitin recently).
The Mswing and Landry momentum plots to put higher prints.
The Net4% to print positive scores.
Speaking out loud, these signals can come Monday.
Therefore, be ready with your actionable watchlist.
Sharing mine below.
Group Strength:
The strongest groups:
Index:
Nifty Health and Pharma showed strength amidst the weakness.
Groups:
EMS is the strongest of groups.
Watchlists:
Follow the Strongest Stock (the RS 100 names):
Watchlist(s) below
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