Market MATH & Watchlist

22-Sep-2024: Bias Bullish

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: “Percentage of stocks above 10-DMA”

Has made a low.

There is a hidden bullish divergence with N500.

The 5-DMA cross is anticipated to come soon, which would confirm the bullishness further.

Momentum: “10-day Rate of change”

The momentum plot is positive, above its 5-DMA, and rising.

Bullish.

N500 (same for N50):

At ATH.

Although that might fail to deliver the complete picture.

This ATH has been a result of huge bouts of volatility in the second half of the week.

Net4% Movers:

Dipped below 0 on Thursday.

But back to bullish territory on the week’s close.

Bias remains bullish

Anticipation:

The anticipation remains the same.

The bias is firmly bullish.

But I would not let my guard down for a second.

I am still wary of the volatility and choppiness (like last week).

The moves have become more and more selective.

So it might be prudent to adjust your trading.

I believe as a swing trader one should be quick to derisk the trades.

Positional players would not have much to worry about as long as we are still trending above the 10/21s.

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Group Strength:

The strongest groups last week:

Index:

Consumer Durables-FMCG-Consumption.

Financial services and Private banks are back with a bang.

Pharma and IT had sideways to negative performance, but are still holding up well.

Realty had a strong week.

Watch out for Strength:

Realty

Financials and Private Banks

Pharma

QSR

Air Conditioners

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Watchlists: