Gap Lower then Upside Reversals
Richard Moglen
Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue
December 30, 2024
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Market Action
QQQ – Gap lower and back below the 21ema, choppy action. middling close. Should be a volatile end to the year and start of 2025. 2 sharp down days now
Short Term Expectation based on the close is consolidation or lower.
Bulls want to see us reverse back higher or build sideways
Bears want to see us undercut the 50 day
IWM – upside reversal after a gap and push lower
Bulls want to see us follow through up
Bears want to see us break lower below the range
IBIT- upside reversal, potential short term low in if we can follow through up
Bulls want to see us follow through up above the 21
Bears want to see us reverse lower
Trends (2/4 Up)
Shortest – 10 Day EMA – Down Below declining
Short-term – 21 ema – Down Below declining
Intermediate term – 50 sma -Up Above Rising
Longterm – 200 sma – Up – Above Rising
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Groups/Sectors
Performance Today 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 upside reversal near the 21ema, Some RS
ALAB back at the 10ema in trend
PLTR short term pullback, bit of a fade
TSLA testing the prior ATH again. watching for a range to form against the 21ema.
RDDT at the 21ema
EQT strong with oil and gas theme leading today
Stocks Setting Up
APP tight at the 21ema
CRDO upside reversal
KGS range at the 21ema, can really move. If energy theme holds. Watching for follow through up
GME tight near this pivot, watching for reconfirmation higher, a bit stretched from MAs
KNTK energy theme, watching for follow through
TSM 21ema pullback after failed BO, clear spot to manage risk against
NAMS watching for range breakout. biotech
RBRK still showing RS, watching for push higher
AVGO watching for follow through up
QFIN 21ema tight range
RVLV strong action at the 50 day, watching for follow through
GEO getting a bit too tight for too long
ZIM this has been choppy but watching the higher low after strong push higher
GOOGL oops reversal near pivot, watching for follow through
RIVN strong upside reversal, watching for follow through
AI upside reversal, watching for follow through
RBLX upside reversal near 21ema
GLBE 21ema, good look on the weekly
UPWK upside reversal near 21ema
INOD at the 21ema. potential positive ex breaker
NVCR tight day watching for push higher
GEV strong push from 50 day, watching for follow through
BE tight day and no real follow through lower, watching for push higher
KVYO strong action off 21ema, base pivot confluence, watching for follow through
Themes and Leaders
Key Themes: Software, AI
Liquid Leaders
These names have the top RS, growth stories
TSLA PLTR RDDT ALAB APP GEV
Performance Enhancers
SOUN QMCO RGTI RUM
Market Thoughts & Focus
I like the gap down, it helps show RS. Decent response from different names with upside reversals and oops reversals to watch. If we get follow through higher tomorrow that would be a positive sign for the market. Last day of the year.
Daily Focus is on RDDT APP TSLA AVGO
Anything can happen, Day by Day – Managing risk along the way
I hope everyone had a great Christmas!