Market MATH & Watchlist: 6-June-2025
Easy Money| Bias: Trust the Uptrend
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.”
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, we are trending back up.
In the medium term also, we are trending back up.
In the long term, we have broken out of the oversold zone and trending higher.
Momentum:
Homma Mswing Score: (basal Momentum)
Mswing score remains bullish.
Landry Daily: (Momentum Bias for Swing Play)
Strong.
Landry Weekly (Momentum Bias for Positional Play):
Landry momentum weekly is 4th week up in a row.
We are transitioning into an Easy money environment for Positional trading too.
Net4% Movers:
More bullish after the mild bullish phase last week
N50:
Above all key MAs.
At the breakout pivot of the base.
Bias of a breakout.
Immediately or after a small T.
Anticipation:
So after inching up sluggishly, we had a bullish thrust on Thursday.
That took the index above the downtrend line.
This is hugely positive for the markets and another show of hands by the bulls.
My bias is bullish.
And the attitude is to trust the uptrend.
The swing high right above can be a potential resistance.
I also anticipate a deeper pullback sometime in the future.
It could structurally like this below.
Positional bias = Hard-Easy money transition
PS: Anticipations are often wrong, and biases 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:
Defence is still the strongest out of the pack. It has a bearish candle today. So I expect a regular pullback.
Financial services (stock market infrastructure) are on fire.
Private banks and Financials breaking out.
Realty has a new lease of life.
Index:
Small-mid cap and Realty getting stronger.
Watchlists:
Follow the Strongest Stocks (the RS 100 and RS 100 Liquid watchlists below):
Find Tightness candidates from Tandem Inside bars and Tandem Low ranges.
https://www.sakatashomma.com/scanners
PS: Lots of Flags now. Some ready some still forming
Find my Tightness candidates from the Highest RS names below.
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