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Don’t Bottom-Pick — Monday’s Massive Gap Down Is a Gift if You Know How to Play It

by | Jan 27, 2025

Markets are a sea of red as we kick off a new trading week, with a bloodbath particularly among tech stocks.

Nvidia (NVDA) is down nearly 12% on news that a Chinese startup, DeepSeak, a free open-source large-language model was developed in just two months at a cost of just $6 million, a fraction of what is western counterparts cost.

This new model also reportedly outperformed OpenAi’s latest edition in many third-party tests.

So the prospect of China having a cheaper competitor is a big, big problem.

However, this will be a big help for us today because we’ll have a gigantic gap down on the open, which should reveal which stocks are the strongest.

Furthermore, it’s all just speculation at this point, so I don’t expect this to be a longer-term drag on the market.

Here’s a suggestion: Don’t bottom-pick the cheapest chip stocks. I’m going to cover some stocks at the end of today’s live session that might be worth buying the dip in.

In fact, there could be a lot of stocks in play that we can take advantage of. We also have a full slate of earnings, and here are the expected moves for the biggest plays of the week!


We also have a ton of Fed data that I’ll discuss as well…

I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!

Roger Scott
Roger Scott Trading

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

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P.S. Emergency “State of the Market” Briefing this Tuesday

Just eight days into Trump’s presidency, his clash with Fed Chair Powell could trigger a major market move come Wednesday.

I’m making critical changes to my trading strategy before Powell speaks on Wednesday and watching certain stocks I believe will be at the heart of this crossfire.

Here’s All You Need to Know

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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