So imagine losing 30 of your position or of your account balance. What's going on team, it's ricky with techwith solutions and i'm going to talk about a super oversold stock. A lot of you guys like when i make these videos - and all i ask in return - is to drop a thumbs up and, of course, make sure you're subscribed to the youtube channel. I am almost at 1 million subscribers and to keep it super simple.

If you're already subscribed just comment down below subbed and i'm going to be selecting one random person in the comment section and just giving you guys a day trading mouse pad so again make sure you drop a thumbs up, make sure you subscribe and, of course, make Sure to comment down below and i'll be selecting you tomorrow, so let's go ahead and jump right to it. What's this stock that dropped 30 today p-t-o-n reported earnings today, and i want to share with you first, i want you to be able to see what this looks like. Pton was trading right before earnings at 86. One of the main reasons: a couple days ago, i decided to sell pt01, and i made a video on this was pt1 has been getting rejected by this moving average.

It's the light green line. You see right here it sold off quite a bit. It began to establish a support level at around 80, a share. It began to trade above the ema line.

Everything looked good. This was when the market barely began to indicate signs of a recovery, and then we began to get hesitation right around this moving average. I decided to lock in profits and again it's the concept of if it does break above the moving average and continues to uptrend. I can always get back in until then.

I don't want to ride the stock back down. I anticipated pton to drop back down to 80 a share. I didn't expect it to just absolutely tink. Look at that.

Thirty percent drop after market hours. It went from eighty six dollars down to sixty dollars, so i wan na put this into perspective. If amc, i'm sorry, if pton were to find a support at sixty dollars a share and if it were to recover just to eighty dollars a share, that's a thirty six percent return and if it were to recover to the moving average, which was where it was Turning out before that would be a 50 return. Think about that a 50 return on a stock that just dropped 30.

Now, one of the things that you need to know is that pton does not need to recover anytime soon, pto1 sold off very aggressively during the after market hours. So when it reported earnings, it saw a drop and it continued to sell off throughout the remainder of the aftermarket trading session. With that being said, it can still continue to sell off a very big and common misconception that people have is like well, this stock is cheap, but always know that it can always get cheaper. So what i'm here to share with you is i like sharing and talking about oversold and cheap stocks.

I don't think anyone can say that well, pt1 based off of current value and previous value is a cheap stock, but it doesn't mean that it's a good buy right now, because it's not indicating signs of an uptrend, it's simply aggressively sold off. So this is where it makes the most sense to set effective alerts if it begins to recover and of course, add it to your watch list if and only if you actually see value in it. So it's as simple as adding it to your watch list, setting an alert if it actually begins to indicate signs of an uptrend and then doing your job and holding yourself accountable and staying disciplined and following up with it when your alert gets triggered right. But like we know, cheap doesn't mean that it can't get cheaper, so i'm actually going to set my alert for the break below 58 because if pton continues to sell off, i want to make sure that i'm aware of that, i want to share this video with You guys, because i love talking about cheap stocks, but let's also understand that it doesn't have to recover right away now.

The question that you might have is not just on the technical aspect, but why is it what was said during this earnings report that caused the stock to drop? Well, a lot of you guys, i'm sure, know pton, which is peloton, did extremely well during pandemic conditions. It peaked in at the you know, uh end of covet right. So as we begin to transition, you guys could see this the dates right on over here from early 2021, we peaked at 171 and it's been selling off ever since, as we resume business as usual and as gyms begin to open back up peloton is a is Very popular for its at-home workout machines and you can see why demand levels would skyrocket during when gyms are closed pandemic conditions versus now when gyms are opening back up with that being said, they took an additional step and reduced their prices. I think about 400 dollars to what they were at before, but still demand levels are just not there as well as they had logistic issues when it comes down to shipping right, there's a huge back order of how many shipping containers and that whole you know just Overall, logistic issue that any real and any huge manufacturer that especially manufacturers overseas.

That's why peloton announced that they were in the works of potentially looking for a manu or a facility in the united states, but again, obviously not something that they have established. So with that being said, they still have those logistic issues. They don't see demand levels to increase anytime, soon and again, jim's opening back up demand levels are not going to get back to where they were during pandemic conditions, all three negative takeaways. So i love talking about positive.

You know outcomes right. I want peloton to recover. I want to be able to you, know, ride back the reversal, be able to buy the dip and ride back the recovery, but we need to be aware of what was said. So i wanted to make sure that i did my job and not just talking about the recovery potential, but also talk about what caused this to sell off.

So you understand why and how it doesn't have to recover, or this issue does not have to be solved. Anytime soon, this is an ongoing issue, and this is why we saw we experienced such a sudden drop and it should encourage you to be selective. You shouldn't be scared, but you should be selective right watch your position, size be selective if you decide to enter and of course, if you see value in it, don't be afraid to add it to your watch list. But it's that simple.

I wanted to share with you a stock that it has been very popular. It dropped 30 percent, and i thought i can do a decent job talking about it with you guys that it's cheap it can definitely get cheaper and how i plan to trade it and i'm simply waiting for indication of an uptrend right. I want there to be a reason behind why i purchase pty, not just because it's cheap, because there's a lot of cheap stocks out there, but it's knowing when to buy, because it can always get cheaper. Allow that opportunity to present itself and allow that direction to be in your favor.

So that's what i have to say about peloton stock. So again, i hope that you learned something new. If you guys did, please consider dropping a thumbs up and, of course, do not forget to subscribe, and if you want a chance to win a mouse pad, just make sure you comment down below, subscribe and again i'll be selecting a random subscriber tomorrow by the time I upload my next video. I really do appreciate guys this time i'll see you tomorrow at market open for our live training session and, like always, let's make sure that we in the year on agree now take it easy team.