Market MATH & Watchlist: 4-April-2025
Bias: Downswing continuation
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”
In the short term, it transitioned into the bearish zone.
Bearish MA cross in the medium term.
Still oversold in the long term.
Momentum:
There is a bearish reversal today.
Lower highs.
Landry Daily: (Momentum Bias for Swing Play)
Topped at the start of last week, meeting resistance at the descending trendline.
The decline continues.
Landry Weekly (Momentum Bias for Positional Play):
Weekly momentum continues to languish at the bottom.
N50:
Reversed from the major pivot high.
The pullback continued the whole week.
A bearish candle today takes the price below all key MAs.
The possibility of an iH&S playing out is still open, but the price has to sustain this level.
Net4% Movers:
Remained bullish the entire week, eventually closing extremely bearish today.
Anticipation:
So, we have continued the pullback and undercut the key MAs. How could things unfold next?
The global market uncertainty led by Trump Tarriffs has led to increased volatility in the Indian Markets as well.
There was a divergence of strength in breadth and the indices.
This was resolved today, with the breadth turning bearish as well.
As things stand, we have a bearish reversal breadthwise.
While the indices have undercut the key MAs with big bearish candles.
No tails as well.
The bias, therefore, has changed into a continuation of this pullback (downward move) with a possibility of testing the previous swing lows.
Any bullish reversal from here will need a strong confirmation of price.
Positional bias is back to NO money this week.
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:
Sectoral:
Banks and Financials remain less affected.
Textiles had a good week.
Index:
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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