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.
In particular, I am inclined to trade the following 3 stocks:
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.
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.
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
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- ChrisColeman·2023-04-02We can buy more when they are pullback?1Report
- JediGingerNinja·2023-04-04🍻 cheers I'm being squeezed on meta short that obviously I brought too earlyLikeReport
- WebbBart·2023-04-02I will keep watching the Chinese stocks maybe they can rebound.1Report
- airui·2023-04-02looking at intel too2Report
- WernerBilly·2023-04-02Good to keep an eye out for some of them.1Report
- BIJAYA242·2023-04-02Okey nice thank you2Report
- ZEROHERO·2023-04-04Good sharing. Can also consider shorting using bear put spread without time decay ☺️LikeReport
- Kk66·2023-04-03CoolLikeReport
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- Lkc·2023-04-02[Smile]LikeReport