Overbought Stocks: My Watchlist For The Coming Week

With QQQ entering a bull market last week, I've been keeping a close eye on possible pullbacks in certain stocks that may be overbought. In order to determine which stocks are the best candidates for options trading, I've been using a variety of technical indicators.

One of the most important indicators I rely on is the 14 day Relative Strength Index (RSI). This helps me identify overbought and oversold conditions in a particular stock. I also pay close attention to support and resistance lines, which can help me predict potential price movements. Another useful indicator is the Tom Demark TD9 sequence, which can provide insight into trend changes and reversals.

Using these technical indicators, I've filtered down a list of big cap stocks that I believe are likely to experience some correction in the coming week. The table is a summary of the stocks in my watchlist coming week. 

$Netflix(NFLX)$ 

In particular, I am inclined to trade the following 3 stocks:

$Microsoft(MSFT)$ 

Microsoft Day Chart

If the RSI goes above 75 and the TD count reached 9 with a perfect sell formed this coming Wednesday, I will consider buying some Put options at the strike price of $295. Or if the RSI is able to go about 80, I may consider buying more Put options at a suitable price. As the per share price is too high, I will not sacrifice my margin by selling naked call options directly.

$Meta Platforms, Inc.(META)$ 

Meta Day Chart 

I may short the stock directly when RSI is above 80 and TD9 perfect sell formed this coming Tuesday if my margin allows. The stock is already up 70% year till date but there are no obvious resistance levels, so I will wait for the RSI to go very high before I short it.

$Intel(INTC)$ 

Intel Day Chart

When the TD9 count of Intel reached 9 with a perfect sell formed this coming Wednesday, I will consider buying some put options at the strike price of 36 even if the Put Option is OTM. Of all the semiconductor stocks that surge in recent months with the AI hype, Intel is probably the least popular amongst them. So, I expecting INTC to drift lower with the broader market compared to other stocks like NVIDIA.

Thank you for reading

@TigerStars  @CaptainTiger  @MillionaireTiger