 Hey everyone, Lee Lowell here, smartoptioncell.com. Welcome back to another edition of our Saturday Synopsis. Today is Saturday, August 20th, 2022. What do we do? What do we do here at the Saturday Synopsis? Well, I show you the charts. I've been doing this for 30 years. I make these free videos because I wanna help you become a better and smarter trader, whether that's trading stocks, trading options. I'm here to show you how to read charts. And in the Saturday Synopsis, it's all about technical analysis. I'm a chart reader. So I wanna show you what I look for, patterns I look for, the technical indicators that I use in my charts. So these are all for free, trying to help you become a better trader. So let's just jump right in like we always do. And we look at charts. We look at the indexes. We look at individual stocks. I wanna show you what I'm seeing and what you could possibly do to make a better trade out of what you're seeing on the screen. So what you see here is my charts. I use daily charts. And I just have simple open, high, low, closed bars. On the screen here, you see some lines. I got three moving averages. I got a 20-day, 50-day, 200-day moving average, all simple. The blue is the 20, the red is the 50. And this orange or green line is, can't really tell the color, is the 200-day moving average down here. I have the 14-day RSI indicator, which is an overbought, oversold indicator. It tells you when things are getting heated up or when things are just truly oversold. And that's all I use. And it helps me gauge which way the market is moving. We also put in these channels, these lines that you can see here. You can see the market's in a channel going up, going down here, and then this nasty one right here. So let's talk about what the market's been doing. And as you know, basically since January 1st, which is back here, the market has been at a downtrend. And we use the SPY, which is the exchange traded front for the S&P 500 as our best overview of the market as a whole. Okay, so since January, things have been coming down. But recently in the last two months, we've had sort of this V-shape recovery right here. Market's been going back up. Now, if you've been watching my videos for a while, you know that we had the downtrend here. And just as we were popping out here towards the middle of July, third week of July, the market was coming up and outside of the downtrending channel. So that was good. I was remarking about how we're starting to get some movement upwards. And then as you can see, we've had this nice move all the way up. And the last week or two, I've been talking about how the market is probably gonna get through this 417 area right here. Said if it can hold above that for a little bit, it's gonna start moving up towards the 432 area and intersecting with the 200 day moving average. So we got this here. The market moved up. Just touching the top edge of the channel, intersecting with the 200 day moving average right near the 432 level, you can see at the top of the bar here is the high of the day. And so hit about 432, maybe just under it. And then it got knocked back down. We talked about how we'll probably see some consolidation, some pullback, some sideways action. So that's what we're seeing in the general market. What's coming up next? Well, we're gonna have some pullback here. What we may see is the market may pull back to the bottom edge of the channel and also the 200 day, the 20 day moving average, which is right here. So I'm thinking we're gonna see some pullback, maybe to the 415 level, somewhere right in the middle, somewhere between 410, 420. And you can see here's the 20 day moving average. Here's the bottom edge of the channel. Market's pulling back. So I'm thinking right around here, maybe 415 level, we may see a pullback. And then after that, hoping that the market's gonna start to jump and move back higher for all time highs right around the 480 level. Typically summer, August, September, usually weaker periods, seasonality for the market. So August, September, we may have some more pullback here, maybe some sideways action, but let's use this 417 level as our next line in the sand, market can come down, maybe a little bit lower than that intersect with the 20 day in the bottom edge of the channel. And then hopefully we'll see the market move higher from there. Let's look at the triple cues, NASDAQ, same thing. Got the downtrend. And I highlighted this area right here is only because April, starting in April was just a nasty part of the downtrend. Started back here in January. Everyone's been all up in arms the last seven months or so, but we've had this nice recovery. Some are calling it just a bear market bounce. Some people are calling for the market to come off again and then get down to new lows. I'm not sure if I'm not sure if I'm agreeing with that. I don't think we're gonna see new lows again. I just think all the bad news that's been out there, inflation, interest rates, COVID, war on Ukraine, supply chain issues. I think all those things have been, they're old news now, even though it's still there, but everyone has had a chance to adapt to that, understand what it's all about. Companies are once again adapting to that new environment. And I think the market just realized, okay, it's just time to go back up again. Companies are having decent earnings, which means they're profitable, they're putting out good products, people are still buying those products. So if a company is having good earnings quarter after quarter, the share price has to follow. That's just how it works. So down here, the market just decided, all the bad news, we're looking forward to better times and we've been going up. So we had the little pullback this week, but that was, I don't think that was a surprise to anybody if you look at the SPY again, you can see. Sometimes market trades on technical areas. A 200-day moving average is a big area on a chart. And so when a market moves up towards it, it's gonna find some resistance while it's moving up. If it was falling back down, it would find some support there. But for now, get some profit-taking. The market's come up a long way in a short period of time. I think there's just some profit-taking, some selling off, and we'll probably find some support right in that 410, 420 area in the next week or so. And then hopefully we'll keep going. So getting back to the Qs, same thing, got the V-shape recovery, coming back to the bottom edge of the channel, maybe around 320, we may see some sport pull in here, and then maybe a bounce. Let's look at some individual stocks as we always do. We look at the bigger names because those are popular, that's what people like to trade. Let's look at Apple real quick. Apple's just been a monster since the middle of June. Look at this beautiful V-shape recovery. Look at that. I mean, you can't get it any better than that. As the market started to come out of this downtrending channel, here was a nice area. If you're buying it on pullbacks, and you'll see in the channels, it goes from top to bottom. And so if you're a buyer, and once it got out of the downtrending channel, right around here, if you wanted to take a stab, you could have bought around 135 or so. It goes up, pulls back again, another chance in the low 140s, and then it just rallied up. Here's the all-time highs for Apple, maybe around $183 a share. It's gonna get there, but we're gonna have this little pullback first, maybe to the 20-day moving average here. I mean, maybe 165 or so, we'll see depending on how the overall market is pulling things up or down. That's Apple. Let's look at Tesla. You know, Tesla's just a beast. People love Tesla. You know, the last couple of months I've been talking about this $700 level as a magnet area. And it was drawing this congestion pattern here, range is getting tighter and tighter, typically means it's gonna blast through it one way or the other, blast it to the upside, got to the 200-day moving average area of $900 a share. That's where it had been flirting with the last week or two. And it came off this week just like everything else, but intersecting with the 20-day moving average right here. So maybe it'll find some support this week, maybe move higher depending on what everything else is doing. So that's Tesla. Let's look at Amazon. Amazon here had to support just above $100 a share. We talk about this all the time, but it's just rallied right off of that. Once again, finding the resistance, let me pull this down a little, right at the 200-day moving average. And had to pull back just like everything else. Here's the 20-day right here, the up-sloping 20-day, right around maybe $136, $136 a share, may pull back to that area, get a bounce and continue higher. So that's what we're hoping. AMD, I always talk about AMD. We've got a trade on AMD in our newsletters. We do some put selling, some put option credit spreads, that's what we do here. Let's bring up our website real quick, smartoptionseller.com. If you don't know anything about put selling, because that's what our main gig is, go to our website, go to putsellingbasics, download or put your name and email address here. We'll send you a free guide, it's a 30-some odd page, free guide that I wrote about how to sell, put options, what they are, why they're so great. That's what we do here. So get your name in here, we'll send you an email. Inside that email will be a link to download the PDF that I wrote. And if you don't go get in on this page, if you're anywhere else within our website, you'll get, there'll be a pop-up box you can put in your name and email address as well. This page just talks a little bit more about what it is. Our services tab right here, here's our two newsletters, we sell naked puts, we sell put option spreads, and our one-on-one coaching, if you need a little help getting to that next level. Let's go back to the chart. So here's AMD. You can see it was in this long downtrend. You can see the channel bounces from top to bottom, top to bottom, okay? Here, it got out of the channel, moved above it finally. And we can look at it this way, it's making this little congestion pattern right here, okay? So it's gonna pop one way or the other to the downside or the upside. If it comes to the downside, it's got now the top of this channel could act as some support, right along with the 50-day moving average here. You can see this line, 50-day. So if it does come off again, maybe $87.88 a year should be the bottom. If it pops to the upside along with the rest of the market then it's gonna gun for the 200-day moving average right around $111 a year, $112 a year. I like to see it move higher. I'm bullish on AMD, I love AMD. We also have some trades on AMD, we want it to go higher. So we watch AMD. Let's look at some of our stalwarts. We look at Disney. You mean, I know in the long run, Disney's gonna go higher. I'd been a buyer at 130, came down a lot more than that. I may have nibbled a little bit here and there on some more, but I'm waiting to see what happened. Found the rounded bottom, moved back up. And here's you've got your 200-day lurking above. Got up to about $125, $126 a share. That's a nice recovery from the lows at $90. In the long run, I'm holding. I know Disney's gonna go higher. Let's look at Nike, another name brand known around the world. I was in the downtrend. It's now has started this new uptrend, but balancing right or finding support right on the bottom edge of the channel. Here's the 20-day moving average. Let me see if I could zoom in a little on this new feature here. Let's see what happens. That's a pretty good zoom. Let's run that back. Didn't like that so much. You can see here, 20-day moving average, bottom of channel, finding support right around $113 a share. Let's see if it's gonna bounce and move up with the rest of the market. What else we got? Coca-Cola. We love Coca-Cola as a company. Profitable company here was the congestion pattern I probably drew sometime in the recent past, starting to break above it, which is a good thing. Momentum usually keeps going in that direction. Here's all-time highs right around $67 a share. I think Coca-Cola is gonna gun for that and make all-time new highs. So let's see what other stocks we have. What do we have? Amazon. Amazon, just above $100 a share. Found the support and moving up. Found the resistance at the 200-day moving average. Starting to pull back. Here's the 20-day. See if it finds some support there. Let's look at our list here. Netflix. Netflix coming off the bottom. Here's the bottom support. Rallied pretty good. Here's the next line in the sand. Here's the 20-day moving average. Will it hold there and bounce with everything else? If it does, it's got a lot of room to run up to this next leg here to this area, probably around 335 or so, where we meet the bottom edges of these days right here. So if it bounces, it's gonna go. And at some point it's gonna connect with the 200-day moving average. So Netflix may have found its bottom finally. Let's see. Who? Let me look through the list here. Intel, still down in the dumps. That's why I like AMD a lot better. You can see Intel just on the downtrend. AMD also in a downtrend as well, but stronger than Intel. You can see AMD had been going up, got caught January just like everything else, but Intel, both chip stocks, has just been going down, down, down, down. I like AMD better in that space. Verizon, I wanna get in on Verizon, but not yet, it's scraping along the lows. So no go on Verizon yet. Let's see what else we have. Oracle, doing okay, coming upon resistance right at the 200-day moving average. People, if you don't know about moving averages, the 200-day moving average is like the Mac Daddy of moving averages. It's a big one. Everyone falls at 200-day. So you'll see lots of support or resistance happening right around that level. I mean, look how picture-perfect it is. Found resistance right at the 200-day. So that's Oracle, but it's had a good move. It's had a good move off the bottom. Cisco had a good week, earnings came out. Had a nice pop here. So Cisco kind of in no man's land, filled the gap here, but left the gap here. Who knows if it'll come back down and fill this gap or it may just keep going for that 200-day moving average. Let's see what else we have in our list. Let's go. We do look at the healthcare sector. Eli Lilly, Bristol Myers, Pfizer, Merck. They're all hanging around doing well. We talk about the XLV, which is the exchange traded fund for the healthcare index for the healthcare sector. If you want a good smattering of all those, you can just trade the XLV. Costco doing well. McDonald's doing well. Getting your all-time highs. Pepsi, also another stalwart. Good dividend paying stocks there. We talk about those. Here we go, Warren Buffett. Let's talk about Warren Buffett. His Berkshire Hathaway class B shares found the resistance right at the 200-day moving hours like we talked about, but coming down to the bottom leg of the channel and he got the 20-day lurking below. So could be finding support right here ready for that next bounce. If you don't know about the Warren Buffett report that I wrote, go to our website on the More tab, click on Shop. This is a different kind of options strategy. The secret to buying Warren Buffett for pennies on the dollar. Very intriguing option trading strategy may interest you. Another report that I wrote about Warren Buffett. Stock could be hitting some support ready for that next leg higher. Let's see what else we got here. Twitter, not a fan. Meta slash Facebook, not a huge fan. IBM doing okay. Google also, let's look at Google. Has the channel that we've drawn popped just above it, but pulled back this week. But you can see once again here, right, on the 20-day moving average. These moving averages act like magnets when a stock moves up or moves down. Let's see if it has the support and gets, if it can get above this channel, it should be able to go towards the 200-day moving average as the next spot. You know, we use these charts to help us figure out when it's time to get in and out of trade. Since we're more bullishly oriented with our put sells and our put selling spreads, we wait for the stocks to pull back to either the bottom edge of the channel or the bottom edge of pulling back to a moving average, anticipating the next bounce. You know, that's how we use our timing patterns, right? So if you were looking for Google and you want to get bullish, you would look for a bounce, you know, off the support areas or within the channel. And you can see stock going up here. You can go back to the SPY, way back here when my chart fills in, look at this beautiful channel. You can play this thing, the bounces, the tops, you can sell the position, buy again at the bottom. That's just, you know, what we're looking for. And, you know, if the SPY pulls back this week a little bit more to this area and we see it starting to bounce, that's our cue that the markets probably can get ready for its next leg higher and then we can either get into more bullish positions at that point. It just gives us a better indicator of timing. Helps your timing a little bit. All right, so on these other stocks in here, you know, Riot and Mara, these are the Bitcoin stocks. Bitcoin's pulling back this week, lost a couple of thousand dollars per coin as far as valuation. Clorox hanging around, Colgate looking pretty good. All right, so that's about it for the Saturday synopsis going through the charts. And once again, here, let's pull up the SPY. Get ready for next week. You know, I'm looking for that little bit more of a pullback, possibly 417, 415 area. And then I'd like to see it go. Like to see it make a run to all time new highs towards the end of the year. All right, that's all for me today. I hope this video has been helpful. Give me a thumbs up, leave me a comment in this YouTube video. Don't forget to subscribe, hit that red subscribe button. Send me an email, I'll always answer. Try to help you out. That's what I'm here to do. I want you to become a better trader. And that's it. I hope everyone has a great weekend and a great trading week ahead. I'll see everyone next Saturday. This is Lee Lowell signing off.