 Hey everybody, Lee Lowell here, smartoptionseller.com. How's everyone doing? Today is Saturday, July 10th, 2021. Welcome to another edition of the Saturday Synopsis. This is where we look at the charts, we look at stocks, we look at indexes, and I show you where things have traded over the last week or the last few weeks and try to pinpoint where things are going to go in the future. I look at the charts, I look at my indicators, and that's how I base all my trades. I try to figure out where a stock may be going next. So I'm here to teach you, try to give you some education on how to watch the charts, what things to look for, and how to become a better trader. So that's what we do in the Saturday Synopsis. So let's jump right in and see what the stocks have done over the past week. We always start with the SPY, which is the exchange traded fund for the S&P 500, gives us the best broadest measure of how the market is doing as a whole. So let's open this chart up. Now, as you know, if you've been watching these videos for a while, I like to keep certain patterns on the charts over a period of time. What I'll do is I'll mark up the charts, I'll show you some patterns, some well-known patterns that show up over and over and over again on the charts. You know, these are things that, you know, people are habitual. They do the same thing over and over again. So certain patterns will show up on the charts over and over again. So all you have to do is find these chart patterns and, you know, use them to your advantage. Okay. So here we're looking at the S&P 500. We've had the, you know, the rally since last March from the pandemic. And here you can see the W pattern, which is a bullish pattern. It's better when it comes from the bottom of the chart, but it really doesn't matter. And I draw some other patterns here. We have this, you can't really see it, this triangle, this ascending wedge here, which is a bullish pattern. So, you know, we've been bullish. I've been bullish. I've been telling you that when you're looking at charts, you want to see what direction the price action is showing you. This is obviously an upwards trending chart. And like physics, an object in motion tends to stay in that motion until something pushes it in the other direction. It's the same thing with stocks. Stocks that have momentum, in this case, bullish momentum will keep going in a bullish pattern until something comes along and pushes it in the other direction. Back here before the pandemic, you can see the S&P 500 was in a nice little uptrend here. And then something came along and knocked it back down. But it rallied pretty quickly, pretty hard. And this is where we are today. So on the charts, I have three moving averages. I have a blue 20-day moving average, a red 50-day moving average, and this orange 200-day moving average, all simple moving averages, not exponential, but simple. And down here, I have the RSI, which is an overbought, oversold indicator, the 14-day RSI. I have my level set at the 80 level and the 20 level. Those are the black horizontal lines here. And the RSI will fluctuate in between those ranges. And when they reach an extreme, like you can see up here, the 80 level, or back down here, the 20 level, it doesn't mean that a turn is imminent, but it means things are getting pretty overbought or pretty oversold. And then at some point in the future, we may see a move in the other direction. Now here, you can see the RSI was oversold, but the price action was still pretty high. And we had a lot more selling to do before the bottom was found. And then up here, you can see we got into overbought territory. The S&P had a nice little move down, but then bounced pretty quickly. So I only used the RSI to really kind of give me a gauge of, hey, things are might be getting a little overbought and things might be getting a little oversold, but I'm not necessarily looking for a turn in the price action right then and there. So you have to watch it for a little while. But anyway, let price action dictate where things are going. S&P 500, this was where we closed on yesterday, Friday, July 9, 2021, all-time new highs for the S&P 500. I've been telling you, I've been bullish. Here you can see this ascending triangle. You got the top, which was the resistance, and you have the ascending support level here, which means the market is moving up. I can, what I can do is edit this a little bit so you can see it better. Let me blow this up a little bit, make it a little darker so you can see what I'm talking about. Edit this line as well. This is all part of technical analysis. So here we go. It's called an ascending triangle. So you can see the prices are moving upwards. It had this flat top resistance where the market, the S&P 500, just could not get above for a period of time. If you know over the last month or so, we've been churning around, not really going anywhere, until there's enough energy stored up to blast through the resistance. That's what happened a few weeks ago. So the S&P 500 pretty much went straight up over the last few weeks and hit an all-time new high yesterday, July 9, 2021. So that's good. Stocks making new highs, indexes making new highs doesn't mean that's it. The top is here. It's over because we're always making new highs. So people think, oh, well, I never want to buy at a new high because what if it sells off? Well, I mean, you could have been saying that here, here, here, here. A market will continue to go as long as things are okay. Now, as long as companies are putting out good earnings, the prices will follow it upwards. So you never have to be worried about buying at a new high because the market will just keep going up under most circumstances. I'm not going to say the market never goes down because it does go down. You can see yesterday, Thursday, July 8th, we had this nice little move down here. Had a pretty big sell-off and people will get nervous all here's the top. Here comes the next bear market nonsense. Okay, that was just your normal ebb and flow, normal pullback. And you can see today, we made an all-time new high. So if you bought down on the lows, if you're an intraday trader, you probably could have picked up a few dollars by buying on the lows here. But if you're a longer-term trader, you want to follow the trend. Okay, so the market moves up and how do you time your entries? If you're in a bullish market and you want to get on board, how do you want to time your entry maybe for, you know, try to get in a little cheaper? Well, you could always wait for the market or the stock to bounce or come down to either the 20-day or 50-day moving average. As you look at your charts, you'll see a lot of them, if they're in uptrend, they will pull back to either the 20-day or the 50-day. And you can see the S&P 500 did that a couple times here. So if you want to wait for the bounce, that could be your next entry. So we almost had a bounce right off the 20-day moving average yesterday. Didn't get down quite to it, but it bounced regardless. So the market looks strong. I'm only watching the U.S. markets and things in the U.S. are pretty good as far as the economy's concern. Vaccines are rolling out, people getting back to work. The interest rates and inflation narrative that was out a few weeks ago that scared a few people. That's in the history books now. Interest rates are actually coming down in the market over the last week or so for whatever reason. That storyline is gone. You watch companies, you watch their earnings. If they got increasing sales and earnings and revenue numbers, the stock price is going to follow it up. So you want to pick good stocks. You want to pick stalwarts or you can just invest in the index itself. So we have the S&P 500 look strong for next week, pretty much the same stuff. There's really nothing that's going to derail this thing right now. We have Q2, quarter-two earnings that are starting to come out around the third week of July or so. So that'll be our next event to start watching. If the companies are coming out with bad numbers, then the market might come off a little bit. But if they're beating expectations and they're projecting good numbers for the next quarter, the market's just going to keep going up. So the S&P 500 at the moment looks pretty good. Let's take a look at the NASDAQ composite, which goes up and down pretty big. These are the expensive, popular tech stocks that everybody loves. Now once again, we had this W pattern. We had the resistance here and looks like we finally broke out of the resistance just the other week and it's kept on going. You had a lot of energy stored up trying to get through this resistance. Some people would have called this a triple top, one, two, three. When you have three times trying to get through resistance, most people will call that a triple top, could be bearish. But the NASDAQ really didn't drop and it just powered through the resistance and has made on Wednesday this week an all-time new high here. Had the pullback yesterday, two days ago, Thursday, almost hit the 20-day moving average here, the blue line, just almost tagged it but moving up again. So you could always have another little stall out here and then power up for the next move. Things are looking good as far as the U.S. goes. I really can't see anything that's going to derail this for right now unless all the earnings that start third week of July are just miserable. But I don't think that's going to happen because everything started opening up in the U.S. as far as businesses go. So the numbers should look good, but we will see in the next few weeks. Let's take a look at the Dow Jones Industrial and that I think almost hit an all-time new high as well yesterday on Friday. You can see I drew this channel pattern here. So it had been bouncing around a little bit in the channel. Now it was sort of flat lining. And let me take this off so we can see the price action a little better. You can see here's the all-time high in the Dow and Friday closed just near the high. Hasn't taken out the all-time high yet, but getting very close. What we can do is, move myself over here, we can kind of draw. We have the resistance here. So here's the line in the sand that the Dow needs to get above. It needs to get above its all-time high. Sort of has a W pattern. You can watch my mouse making sort of the W pattern right here. If it gets through the resistance line, it's off to the races. So up here in the next few days, starting next week, we're going to see where the Dow wants to go. Will it stall out and drop down or will it continue to power through? My guess it's going to power through and follow the NASDAQ and the S&P 500. You can see on my list of stocks here, the stocks that are highlighted in green or yellow, whatever color that is, that means they're making all-time new highs or 52-week highs. Got a lot of stocks making highs these days. So the indexes look strong. Let's take a look at some of the individual stocks that are helping the indexes power higher. Let's start with Apple because we've always been talking about Apple. I've been long Apple via deep-in-the-money call options and I had sold some covered calls. I'm sort of kicking myself a little bit now because Apple finally has rallied all the way back up. But we've been talking about Apple. It was in this triangle congestion pattern made all-time highs back here. Then it got in this downtrending channel, had the W here, powered above it, came back down and then just started a path. It bounced off the 200-day moving average. That's the granddaddy of moving averages, the 200-day moving average. And it bounced a number of times, one, two, three times right here. And it said, know what? It's not going any lower. It's time to rally up. And look what it did. Finally made all-time new highs on Friday, July 9th, 2021, right here. Each bar, each one of these long bars is one day's worth of trading. So here's July 9th right here. And at the top of the bar is the high of the day. The bottom of the bar is the low of the day. And that little teeny dash mark on the right-hand side is where it closed for the day. So it closed just on new highs, made new highs, but where it closes is very important as well. So I think it closed right on a new high. So that's very important. So Apple finally looking strong, looking good. Now it's got all this air up here. It could rally up too. So we'll see where Apple wants to go from here. But I've been bullish. A lot of people have been bullish. Finally, we got what we've been waiting for all-time new highs here. Market looks strong. Apple looks strong. We're earnings in a couple of weeks from now, so we'll see how they do. Let's take a look at Amazon because I've been showing you this chart of Amazon for a long time now, how it had been in this channel since last June, basically. Just been bouncing around in this tight channel. And then just this week, look what it did. It had this monster move on what day was that? That was July 6th. So that was the beginning of this week. That was right after we had the holiday, July 4th holiday here. So this was Tuesday. Yeah, this was Tuesday. This long bar right here was Tuesday. I think it was up like $170 a share on Tuesday alone. So it powered through this long-time resistance and it just blasted right through it. So it'll probably consolidate a little bit here, catch its breath, and then once it gets through resistance, it should keep on going. So it might consolidate a little bit, catch its breath, and then move on up for the next power move higher, especially if Amazon comes out with just stellar earnings, which they usually do. Amazon, I mean, they're just getting bigger and better every year. So I have to believe earnings is going to power it even higher. So that's the Amazon chart looking good. Tesla, we look at. Tesla had been all over the map, up, down, sideways. We still have this long-term support right here around the $550. Has not been able to get through it, bounce back up, came back down this week. So it's kind of converging between the 20, 50, and 200-day moving averages. Right here, it's kind of holding its ground. Tesla, the options prices are still always expensive. You can sell a lot of out-of-the-money put options on Tesla, like a couple hundred dollars out of the money, and very short-term options, one, two-week options on Tesla. I've been hearing from a lot of people that like to sell Tesla put options. We've done some. I put out some recommendations on Tesla as well in our newsletter. So Tesla is there. As long as it kind of meanders around here, it goes higher. Selling put options and put options spreads has been a good thing. But it still has an ugly kind of looking chart, but the support is here. So Tesla might just kind of bounce around. I really don't have a strong opinion one way or the other, whether it's higher or lower, because this chart looks so ugly. I can't even get a gauge myself on where I think this thing is going. But some people will like to draw patterns like you can draw a line here. You can draw a line here. So now you have somewhat of a congestion pattern right here, because these are the things you want to look for. You want to try to look for these patterns. And so maybe we have a congestion pattern. And once it pops either above or below, and you'll know the next move of the stock. Okay, let's take a look at some other stocks. I like Oracle. I had shown you Oracle of late. And this past week, Oracle has just been powering higher. I'm not really sure what happened here. But I had the ascending wedge here, which was just like we had on the other chart I showed you. So let me edit this thing a little bit, make it a little darker so you can see. And then I can show you some analysis. And then we have this piece right here. Darken this up. Okay, so now you can see we have this ascending wedge. And it powered higher. And it looked like it was going to keep going. But then it came it got knocked back down. Yeah, I had the earnings come out. I think that's what it was got knocked back down. We sold some put options down here, because I love Oracle as a company. If there's great companies out there and they have these one off bad earnings, they get knocked back down. It's usually pretty much a good buying opportunity. We do that in the form of by selling put options selling put options as a bullish strategy. So we got in here. So we took advantage of this move and it just powered higher this week. Look at that move. Pretty big. That's a big big one week move for Oracle. So I like Oracle here. You know, it's not totally overbought. It would look like it would be overbought here, but it hasn't hit the 80% level on the RSI. So maybe it'll consolidate a little and then keep going. Oracle, great company. I love it. Let's take a look at Cisco. Cisco also had the ascending wedge here. Popped through it a little bit, but came back down. And now it's sort of meandered, but still has this support line right here. So I think Cisco's getting ready to it's kind of curving. It's kind of making a little curvy bottom here and hugging along the support line. So I think Cisco has some room to move up here. Don't want to say 100%, but that kind of looks like it's getting ready to may have found a bottom here and might keep going for next week. Let's take a look at some other charts. What are we like? AMD has always been a favorite of ours. We've sold put option upon put option upon put option here at smart option seller on AMD have profited every single time. Look at this. It was holding right at this support line back in May and finally, you know, it powered higher, got through all the moving averages. So AMD looks good. I like this pullback here, but the only reason why I'm unwilling to take another trade right now is because earnings are coming out in the next few weeks, I believe. And I don't really like to take new trades before earnings that are so close. I'll use the wait till after the earnings and then we can get in. But for those of you that were looking to get bullish, you know, AMD went up about $95 and came back down almost to $85. I had pretty good drop here. Almost tagged that the 20 day moving average. So if you're looking for, you know, a timing play to get in, you know, you look for the pullback. So this little pullback could be your next entry point. I'm not saying to get long. I'm not telling you to get long. I'm just saying these are the things that you can look for if you're looking to get bullish on a stock. What else do we have? Nike also powered higher in the last two weeks or so. I think I may have talked about this last week was in this downtrending channel. There's no way you would have known that Nike was going to have this, this, you know, $25, $30 move, this gap higher right here. Nike, it's up in the air here, right? Air Jordan, Air Nike up here. It's definitely overbought on the RSI, making all time new highs here. You can look at the monthly chart. The monthly chart will show you where Nike's been in its lifetime. All we go, Air Jordan, all time highs. So Nike on the daily chart, it's strong, but I'd be careful up here. It's definitely overbought. Could have a pullback, but I don't think it's going to be coming back down here again in the near future because whatever powered it higher, the story is still there. So but it is overbought. Be careful, but Nike has always been a strong company. What else? Let me go through my list here. Netflix still in this channel here. Netflix still in the channel. So not much happening for Netflix could come up to the top or maybe move back down here. I don't have any opinion on Netflix really. Let's see. Walmart, did we look at Walmart yet? Walmart's still kind of just hanging around, not really going anywhere. Disney, Disney sort of in this was in this down trending channel. It's starting to look like it may want to pop out of the down trending channel, but it's hitting upon resistance on the 50 day moving average line. If you're looking for Disney for a potential bullish play, I would wait for it to get finally a couple of days above the down trending line and the 50 day moving average. So you know, wait for it to get maybe near 180 or a little above 180. If you're looking to get bullish on Disney. Let me go through my list here. Look at Tesla. What else we got? What else we got? PayPal, Costco. Costco is super strong. PayPal. PayPal is also looking pretty good. I like the stocks that are like PayPal and Square. Those are doing well. McDonald's. McDonald's. Let's take a look quickly McDonald's. It's just been kind of not really doing anything very flat lining, but it has support here. McDonald's maybe could finally get above this little channel here. We can draw a line here. We've got the top here, right? And then we have sort of a bottom here. So it's in this very narrow channel waiting for McDonald's to get out of that. What else? Google. Google just keeps going up, up, ups. You know, this is if you want to talk about an uptrending stock, look at it. Google just keeps going up, up, up. Is there any other stocks that I want to show you any other patterns that I've known of late? The Bitcoin stocks, Mara, Mara and Riot, you know, they're just going to follow Bitcoin. Bitcoin's been flat lining of late. Twitter has also been a pretty strong stock. I think that's about it. I'm not seeing anything else that I really like here. I mean, the market's just been slowly drifting higher, which is good for people that are long. And, you know, let's take a look at the VIX. The VIX was slowly coming down over time, right? The VIX, here is the pandemic. And this is the volatility indicator. And it's getting back to very low levels of 15%, long-term average between 10 and 15%. It had this little spike yesterday, which is, I mean, on Thursday, where the market opened big, down big in the morning, volatility spiked, but now it has since moved back down because the market rallied up. So the volatility moves inversely to the market direction. All right, well, I think that's it here today. There's not too much big excitement to show you. You know, the market just keeps going up and it's going to keep going up until something comes along to turn it in the other direction. What that is, we just don't know yet. The earnings are the next factor that could turn the market lower, but only if those earnings are bad. So until then, we stay strong. We stay long. And, you know, I'm bullish on the future. I'm always bullish because that's just the way the stock market goes. Now, pick your stocks, pick your quality stocks, get your timing entry, and, you know, ride the market higher. That's what the market does. All right, so that's it for the Saturday synopsis. I hope this has been helpful. Let's take a quick look at our website here, smartoptionseller.com. That is our website, smartoptionseller.com. We sell put options. We sell put option spreads. We do mentoring. We do coaching. Go to our website, putsellingbasics. Click on this link. You'll get a free copy of our putselling basics guide. Put your name and email address here. You can always hover your mouse over the services tab. We have our two newsletters, smartoptionseller newsletter, vertical spread trader newsletter, and our one-on-one coaching. You know, if you need some help getting started with your trading. All right, so in this YouTube video, please don't forget to hit that red subscribe button so you'll always be alerted when I put out another video. I think you have to turn on the notifications as well. But leave me a comment below. Please tell me what you're thinking. Give me a thumbs up. Send me an email. I love hearing from you. All right, that's all for me today. I hope it's been helpful. I hope everyone has a great weekend and a great trading week ahead. This is Lee Lowell, signing off.