Gap up then more selling.
Richard Moglen
Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue
December 20, 2024
[kt_reading_time]
Market Action
QQQ – Gap up and then follow through down. We’ll see if we can get a range to build here or an upside reversal.
Short Term Expectation based on the close is consolidation or lower. Likely we get some bounce attempt
Bulls want to see us hold, build, and rally
Bears want to see us follow through lower and end the week below or near the 50sma
IWM – similar action but inside
Bulls gap down and rally strongly
Bears want to see us break lower or similar failed rally and rollover
IBIT- gap up and close below the 21ema
Bulls want to see us build sideways and rally
Bears want to see us follow through 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
Deepvue Special Offer – Try 2 Months for only $39
Try out the best platform for CANSLIM Swing and Position Traders – Top Trader Screens, Unique Indicators – Streamlined Routines
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
Post Market Movers. Mostly speculative names. quantum computing moving lower
Key Stocks and Moves in Deepvue
NVDA inside day below the MAs. Positive expectation breaker
TSLA upside reversal action off the previous ATH
META gap and close lower
AMZN positive ex breaker but low close
GOOG testing the 10ema again, would love to see a gap and rally or upside reversal, or just a close near it to end the week
ALAB Relative strength flagging against the 10ema
RDDT pulling back into the 21ema
MSTR still pushing lower. Bulls want to see a pos expectation breaker
PLTR tight inside day, pos expectation breaker. strong RS
Stocks Setting Up / RS
Focusing more on watching the leaders and watching for relative strength versus looking for just setups
Focusing on names holding near the 10ema. I will be tracking a list of stocks showing RS each day.
Important!
Just because a stock is holding up well today does not mean it can get taken to the cleaners tomorrow. What we are looking for is sustained RS throughout the market pullback
CRDO holding above the 21ema, would like to see this consolidate a bit as a little stretched on the weekly
NVCR near the 10ema
AVGO will be watching for a range to form as the 10ema catches up
RBRK will be watching for a test of the 21ema
URBN holding up well
APP watching for a reclaim of the 21ema
KVYO great RS from this recent IPO
RBLX some upside reversal action near the 10ema
GEV pos ex, reclaim of 21ema
DOCS strong action
BILL Pos Ex, holding the 21ema
GEO holding the 21ema
BROS holding up well
INOD, volatile but positive ex breaker
NNE very speculative but holding the 50 day
Themes and Leaders
Key Themes: Software, AI
These names have the top RS, growth stories
TSLA PLTR RDDT ALAB APP DOCS
Focusing on stocks holding above or near the 10emas, then 21emas, recent pivots, and earnings gaps.
Will be sorting by weekly closing range tomorrow to see stocks holding up.
Market Thoughts & Focus
How we close this week will be very key.
Some positive expectation breakers out there despite the index action, we’ll see if leaders can hold and build as the market figures itself out.
Anything can happen, Day by Day – Managing risk along the way