Another Gap Down and Strong Close
Richard Moglen
Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue
February 3, 2025
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Market Action
QQQ – Another large gap down with a strong close just below the moving averages.
Short Term Expectation based on the close is consolidation or higher. Subject to more news about tariffs this could go either way
Bulls want to see build sideways or a strong rally up
Bears want to see us follow through lower breaking today’s low
IWM – Gap down and similar strong close. Remains below the MAs
Bulls want to see us regain the recent range
Bears want to see us follow through lower
IBIT- significant gap down but then very strong close.
Bulls want to see us follow through up or build sideways
Bears want to see us reverse lower
Trends (1/4 Up) – Based on the QQQ
Shortest – 10 Day EMA – Below Declining
Short-term – 21 ema – Below Declining
Intermediate term – 50 sma – Below Rising
Longterm – 200 sma – Up – Above Rising
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Groups/Sectors
Performance Today from open on the Left, Performance over the past 20 days on the right.
Performance Charts from Deepvue
Deepvue Leaders Heatmap
S&P 500
Group Ranks: 1 Day, 1 Week, 1 Month, 3 Month from left to right. This is now a preset for Deepvue Members
Post Market Action. PLTR TEM
Leaders and Key Moves
NVDA still suspect with another gap down, low was 26% off highs.
TSLA Gap down to the base lows, decent close, watching for follow through up.
RDDT Strong action off the gap down. Watching for follow through up through today’s high
PLTR strong gap on earnings. Strong Trend and emerging from a new base. This is a later gap in the trend
CRWD strong oops reversal back to the all time high level
ALAB Today’s low is a higher low, watching for the development of the right side of the base
MSTR strong upside reversal, watching for follow through
TWLO Oops Reversal, watching for follow through or a range against the 10ema area
TEM strong oops and up further after hours on earnings
Stocks Setting Up / Holding Up
NFLX watching for a follow through up from this flag
DUOL watching for follow through up. Ideally puts in an inside day
ARM watching for a push through this level. Lower quality due to the recent gap down
CRWD watching for follow though up and ATH breakout
ESTC watching for flag breakout
SOUN watching for follow through up. Low range breakout
RKLB watching for follow through up
SNOW watching for follow through up
GH watching for follow through up
LUNR swing trade idea watching for follow through up
CAVA with food theme strong, ideally this flags out more but watching for follow through up
MGNI watching for follow through up, fast mover
APP watching for follow through up. Later stage base but leading theme
MSTR watching for follow through up and 21ema reclaim
Themes and Leaders
Key Themes: Software, Cyber, AI, Semis
Strongest names in software – PLTR SNOW SHOP GTLB ESTC NET CRWD ASAN PLTR TWLO APP
These names have the top RS, growth stories
RDDT ONON CRWD TSLA HOOD COIN
Market Thoughts & Focus
Very strong reaction up after the open with software leading again. PLTR up after hours will be a good gauge tomorrow. Software leading.
This is going to be a news catalyst impacted market for the next year/four.
Anything can happen, Day by Day – Managing risk along the way