Gap Down – Leaders act Well
Richard Moglen
Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue
January 10, 2025
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Market Action
QQQ – Gap down and follow through lower, respect for the prior base high but then middling close
Short Term Expectation based on the close is consolidation or lower
Bulls want to see us continue to respect/build around this level then push higher, setting up for a higher low OR a washout bar with a good close
Bears want to see us follow through down.
IWM – We put in a lower high against the declining 21ema this week, follow through lower today now against the 200 day
Bulls want to see us continue to build the range here and eventually set up for a higher low, OR again a washout bar below the 200 day and then a good close
Bears want to see us follow through lower breaking the 200 day
IBIT- Relative Strength Today as it starts forming a range near the 50 day. Consolidation day near the KMAs, which way will it resolve
Bulls want to see us push higher from here or undercut and rally the 50day and follow through up
Bears want to see us follow through lower breaking the 50
Trends (1/4 Up) – Based on the QQQ
Shortest – 10 Day EMA – Down Below Declining
Short-term – 21 ema – Down Below Declining
Intermediate term – 50 sma – Down Below Declining
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
Leaders and Key Moves
NVDA Sharp break this week that suggests it needs more time, below the MAs
ALAB continued RS despite pulling back, woudl love a base to setup here. Slight upside reversal today
RDDT Another upside reversal today at the 21ema, watching for a push higher after this pullback. Follow through will be key. Today’s low is a good level to work against. Has been putting in a base here
PLTR sharp pull in to the 50 day, watching for respect to build there and a push higher reclaiming the consolidation lows
TSLA tightening here, showing RS versus the QQQ. Watching for a pop higher back through the 21ema and previous ATH
GEV best acting of the key leaders. Another upside reversal testing the base pivot and strong close, follow through will be a tell
VST good action, peeking above here.
CEG gap higher on big volume. They announced they are acquiring a geothermal company
Stocks Setting Up / Holding Up
AMBA tightening near the 21ema, this can make some powerful moves but liekly needs NVDA to at least act alright. Bar 3 days ago gives a bit of pause but watching as long as it holds the 21
HOOD slight upside reversal at the 21ema, watching for follow through above today’s high
MSTR tight with an inside day, with IBIT showing RS watching for push to the upside
GEV watching for follow through up through highs
RKLB inside day at the 21 below the pivot, watching for breakout through highs
TSLA watching for a push up from this range ideally popping through the 21 and prior high all in one go.
CRDO watching for a push higher through today’s high, again likely needs semis to act better as a group
NVMI watching for follow through up, bigger base
COIN not a focus but keeping an eye on that trendline and if it can start putting in a bottom
TSM nice upside reversal watching for follow through up. noticing a lot of semis look decent despite NVDA
CRNC watching for U-turn, spec and not a focus, a swing or really day trade type name
BROS acting well, watching for a push higher and follow through, I like the weekly look
VRT watching for follow through
GH bigger base, watching for a breakout
ALAB watching for follow through up but wooudl prefer it to build sideways for multiple weeks under this pivot
GME watching for follow through up from upside reversal
RBLX good action, watching for a push higher
RBRK I like the look of this, watching for a level reclaim
PLTR similar, watching for level reclaim and push off the 50
HUBS watching for a push through the 21ema
SMTC inside day, watching for a breakout higher
AVGO a bit relatively weak like NVDA but watching for respect and push off the 21ema area
RDDT watching for follow through up
GLBE watching for push higher, reclaimed the level today and I like the weekly. good estimates
BE watching for push higher through this short flag off the 21ema
Themes and Leaders
Key Themes: Software, AI, Semis. Crypto
These names have the top RS, growth stories
TSLA PLTR RDDT ALAB APP GEV VST CEG
Performance Enhancers
SOUN QMCO RGTI RUM
Market Thoughts & Focus
Looking through charts stocks look more developed than the market. Engery SMR theme the strongest with GEV, VST CEG but we have to see follow through and trend.
Under the surface a lot of names have been forming bases/chopping around for several weeks now since around Dec 9. Todays low is key for most stocks, the key question is can we follow through up and form a swing low. if we undercut today’s low we likely need more time to correct.
Daily Focus is will be GEV RDDT TSLA SMTC
Anything can happen, Day by Day – Managing risk along the way