Market MATH & Watchlist

14-July-2024: Strong anticipations, acted on confirmation.

MATH: Momentum Anticipation and Trend by Homma:

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Link to the last MATH article: Click the link

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As technical traders, We

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

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Trend:

Although we are still trending up, trend intensity decreased last week.

We are again around the 50% mark from where we bounced last time around.

Hence we wait and watch for the bounce. (But confirm)

Momentum:

Sideways momentum, but positive.

However, the ADX momentum plot shows a fish hook structure which could suggest that momentum might pick up. Also notice that we are at the same level from where we did bounce the last time around.

N50:

Tried breaking out of the range (slight positive slope. this adds a bullish bias).

N500:

Tried breaking out of the shakeout day high, but was unsuccesful.

Net4% Movers:

Still printing positive numbers, therefore still holding a bullish Bias.

Anticipation:

I have a bullish bias for the week.

But as we are overextended, a pullback or some consolidation inside the range (marked) will not surprise me. Therefore, a tough environment for swing traders will also not surprise me.

I still anticipate sector specific moves.

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Summary:

Strongest (short term and medium term):

The strong remains strong and some of them becomes even more stronger. Let this be a big learning for you all.

Therefore.

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

• Railways-Shipping-Defence

• PSUs (in general)

• IT (all caps) - Pharma -FMCG

• Fertilizers

• Recycling

• Batteries

PS: IT is a new Breakout {so is Pharma (slightly early) and FMCG}.

A good entry on these groups would be great positional trades.

One might also find their Index-ETFs lucrative.

Read more about their respective breakouts here:

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Watchlists: