MATH: Momentum Anticipation and Trend by Homma:
MATH last week: Click the link
As technical traders, we
“Anticipate, but confirm. Wish, but only react.”
"Skate to where the puck is going to be, not where it has been." ~ Wayne Gretzky
By anticipate, I do not mean “make positions earlier”. What I mean is, assign probabilities to all possible scenarios of what could happen next. Stack those probabilities when those scenarios unfold. And change (increase/decrease) your risk exposure according to changing (increasing/decreasing) Market breadth.
And be mentally prepared with the(your) response. It is a mental exercise. It helps you act faster when the confirmation eventually comes in.
Lastly, be okay with any result/possibility that comes next.
Trend: Bearish & trending down
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, bearish and near oversold
In the medium term, bearish and near oversold
In the long-term, bearish and trending down
Momentum: bearish and Trending down
Homma Mswing Score: (basal Momentum)
meek bounce with a 5-DMA cross.
Landry Daily: (Hard Momentum. Momentum Bias for Swing Play)
(Landry Momentum plot is lagging in nature).
Trending down
Landry Weekly (Momentum Bias for Positional Play):
(Landry Momentum plot is lagging in nature).
Trending down.
Net4% Movers:
Mildy Bullish.
Bullishness declining.
N50:
After Nifty pulled back after kissing another ATH, it found support at the support confluence (previous support zone and Vwap) and is now forming a small base.
The big base continues.
Bias remains of a chop as long as it is inside the base.
Anticipation:
Midsmall after getting slapped from the base resistance (again),
found support at the trend line support.
And has a meek bounce off the support.
More contractions might be in before the breakout/breakdown.
As long as we are inside the base, there will be chop.
Clear Bullishness/Bearishness only after a Breakout/Breakdown.
Yes, the possibility of a breakdown and a deeper shakeout cannot be ruled out.
Positional bias = No money
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.
A quirky Bull Market indicator:
One that tells you for sure when a bull market is in.
One that eases your anxiety and assures you that the market will NOT take off without you.
One that keeps you from jumping in too big, too soon.
One that keeps your expectations in check, IF you are still trading.
(link to the indicator at the bottom)
So is the Bull market in yet?
Group Strength:
Sectoral:
Leading groups: Banks and financials, Metals and mining, Commodities
Most Bullish this Week =
Strength continuation =
Bottom Strength =
Sectors/Groups I like as LRE = Capital markets, Mining
Index:
Leaders = PSU Banks, Metals and commodities.
Most bullish this week =
Indices I like as LREs = Nifty Capital Markets
Watchlists:
Follow the Strongest Stocks (the RS 100 and RS 100 Liquid watchlists below):
Find Tightness candidates from Tandem Inside bars and Triple Tight Star scan.
Earnings/Tradable Gaps are caught by the scanner TGP (tradable Gap Pivots).
Homma scanners: https://www.sakatashomma.com/scanners
Find the lowest risk entries from the leading strongest groups in my actionable watchlist for the week below:
