3/25 Daily Market Note: Looking at a few Oversold Retail Names
Broad Market Digestion is good
Hi Everyone -
Hope you had a good weekend. In the background, I am working on more educational guides to help members uplevel their skills, and in the meantime, I am looking at a few retail companies that I see as oversold.
For today’s session, My Pre-Market on WhatsApp carried much of my thinking into today’s session (as of this post).
Here’s what we discussed this morning on WhatsApp - image below, with key point summary:
Looked to see if NQ Nasdaq-100 would revisit the 18350-380 area where if it did I was looking for a bounce. Low of day (so far) was 18410. It didn’t quite get to my area before bouncing.
On the bullish side, if we broke above NQ 18500, I had the view that it would be intraday bullish. We can see with NQ seeing 18570 today, there has been a +70 point window for long scalps (Direct Entry, Sell 0DTE Put, Long Call, etc).
The sharp move lower right after the open and the subsequent bounce higher happened too quickly for me to take a direct MNQ/MES entry (which would have been most ideal). All I could do today was Scalp with Selling 0DTE Puts on NQ/ES given that we had 1.) a fast reclaim of the Low and then shortly after 2.) we gravitated back above 18500.
There are many experience levels and timeframes to “Selling Puts”. Some are longer-term Sell Put positions with 30-45 Days Till Expiry (easier to manage, more friendly to beginners), others can be as short as intraday Sell Put positions (more advanced, treated as Scalps).
I will have a guide for members on Sell Puts in the coming weeks/months, covering the whole spectrum.
NQ staged an impressive +150 bounce from low of day, and afterwards I set stops on these positions and let the market do its thing for rest of day. Make sure to set stops and limit sell orders to not let reversals turn a good situation into an unfriendly one.
My mission with my pre-markets is to slowly educate our members so that they learn new skills and have an opportunity to see green on modest red days/flat days. Of course when it’s a green day, we all (mostly) win.
My value-add is I hope to help generate Green ideas on Red days, which we put our best effort to do from our pre-market intraday plans.
Below I’m going to quickly talk about a couple companies that I think have been unfairly oversold, and have some upside potential. By no means am I saying these companies are at a picture-perfect bottom, but I do think that there is long-term (1-year) upside from here of about ~10%.