Processing smart folder items within a watched folder

Is it possible to iterate through the items of all smart folders (Saved Search Query) found in a watched folder?
For instance, I would like to tag each item of each smart folder found in the monitored folder, red.
Before
Monitored Folder
-- Smart Folder 01
---- Item 1
---- Item 2
--Smart Folder 02
---- Item 1
---- Item 2
After
Monitored Folder
-- Smart Folder 01
---- Item 1
---- Item 2
--Smart Folder 02
---- Item 1
---- Item 2
As hazel can process the items from a watched smart folder, I hoped it could use the same logic to derive the items from smart folders within a watched folder?
For instance, I would like to tag each item of each smart folder found in the monitored folder, red.
Before
Monitored Folder
-- Smart Folder 01
---- Item 1
---- Item 2
--Smart Folder 02
---- Item 1
---- Item 2
After
Monitored Folder
-- Smart Folder 01
---- Item 1
---- Item 2
--Smart Folder 02
---- Item 1
---- Item 2
As hazel can process the items from a watched smart folder, I hoped it could use the same logic to derive the items from smart folders within a watched folder?