Market MATH & Watchlist

17-June-2024:

MATH: Momentum Anticipation and Trend by Homma:

---

MATH last week: Click the link

---

As technical traders, We

“Anticipate, but confirm. Wish, but only react.”

---

Trend:

The short-term trend is UP.

Now, nearing the over-bought levels.

(PS: Still have room to be more over-bought)

Momentum:

Short-term momentum is Up.

Now, nearing the over-bought levels.

N50:

Comfortably above the Ascending Channel.

N500:

Comfortably above the Ascending Channel.

Net4% Movers:

After showing a huge recovery post-result day fall, it has constantly printed a high number (>9%). This shows hugely Bullish action.

As bodes well for the markets positionally as well.

Anticipation:

After high volatility, last week has been bullish + non-volatile.

Last week I wrote, “A decrease in volatility and a sideways tight action would be best for swing traders to open fresh longs”.

A lot of stocks have managed to do that; build tight areas. While many have already broken out from those tight areas.

The key indices are also comfortably above the Ascending Channel.

If they remain as such, I anticipate an easy money environment for a sustained period going forward.

Minor pullbacks cannot be ruled out as always.

Image: Number of stocks with a tight area.

---

Summary:

Strongest (short term and medium term):

Last week we had notable moves from the Defense sector and other strong sectors (Bearings).

This week I will be on the lookout for strength from the following sectors:

• PSU (in general)

• Railways

• Defense

• Metals

• Telecom and communication equipment

• Solar panel manufactures

• Transformers

• Power

• Batteries

• Bearings

• Logistics

---

Watchlists: