Market MATH & Watchlist: 6-Dec-2024

Bias: A pullback to the key MAs that will be bought

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”

A bullish week which was reflected in the trend plots.

Short-term extended.

Medium-term and Long-term back to the bullish zone.

Momentum: Homma Mswing Score

The Mswing score is nearing the bullish mark.

It threatens to curl down again now.

N50:

Now, we are on an uptrend with a higher printed.

Above the 50-DMA as well.

N500:

Same as N50

Net4% Movers:

We had a bullish week printing positive Net4% print every day of the week (again, same as last week).

Anticipation:

This week saw even more bullishness with good accumulation volumes.

Taking almost all the indices above the 50-DMA and making Higher Highs.

We are back in an uptrend.

This changes the bias to bullish in the medium term.

In the short term, we are 11th day straight today. This could warrant a pullback to the key MAs.

If the pullback comes, my bias is that it will be swiftly bought.

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Group Strength:

The strongest groups:

Index:

Nifty IT is still strong.

While many others did well including PSU Banks and Realty.

Groups:

The financial services sector related to the Stock Market was the strongest (BSE, CAMS, etc)

IPO names made a big splash this week too.

Telecom, Glass, Paper, Transformers, Packaging films etc had a strong week.

EMS and pharma remain strong

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Watchlists:

Follow the Strongest Stock (the RS 100 names)