Market MATH & Watchlist: 5-Jan-2025
Bias: Of a continued Upswing but not as easy money environment
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 in the bullish phase (>50%).
Momentum: Homma Mswing Score
The Mswing score and Landry Score are both on an uptrend.
Landry:
N50:
The index has broken out of the tight consolidation of 2 weeks
N500:
Same as N50.
Net4% Movers:
The Net4% plot turned positive on the 31st and has remained since.
Anticipation:
As anticipated last week,
The midsmall400 after tightening up around the 50DMA with long-tailed candles expanded towards the upside.
We now have a higher low on a larger timeframe.
We are also above key MAs.
Therefore the Bias remains Bullish and for the upswing to continue.
PS: always manage risk even though the bias is positive.
Group Strength:
The strongest groups:
Index:
Nifty Health and Pharma remains strong. Consumer Durables joins them and Auto had a big recovery week. PSEs look to have a double-bottom reversal mostly owing to Oil & Gas having a bullish week.
Groups:
EMS is still the strongest in my opinion.
Watch out for Transformers, Alcohol, rating agencies, hotels, Aquaculture, packaging films, and specialty chemicals.
Watchlists:
Follow the Strongest Stock (the RS 100 names):
Watchlist(s) below
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