 Hey everyone Lee Lowell here smartoptionseller.com how you all doing today today is Saturday July 31st 2021 last day of July this year is definitely moving on moving quickly. I can't believe how fast it's moving Welcome to another edition of our Saturday synopsis. We take a look at the charts. We look at stocks We look at indexes I try to show you what's been happening in the market and give you an idea of what may be coming down the pike I try to give you some examples of support and resistance Chart patterns using moving averages things like that to try to help you become a better trader. This is what I do. This is how I make most of my Trade recommendations in our newsletters smartoptionseller. We sell put options We're looking for stocks that are bottoming out and starting to turn higher And that's what I do. That's what we do and I base most of those decisions on how the stocks look on the charts So that's what I'm trying to do here today for you. So sit back relax and let's take a look at what's happening in the market Although today is Saturday. I recorded this yesterday Friday July 30th. As you can see the numbers over here These are the e-mini futures markets the numbers are still moving bid-ass prices are moving on some of these Stocks the market just closed a few minutes ago and yet the futures market is open for another hour or so until or is it another two hours till 6 p.m. Or 515 p.m. Eastern time. I think they're open till so we got a little bit more action going on in the after market But anyway, let's take a look and see what's happening. Let's open up right to the the NASDAQ e-mini futures market And see what's happening. It's a pretty light week. I'd say as far as movement had a little down move Let me open this up a little so you can see it. This is my chart This is a daily bar chart that I use every one of these long Lines here is one day's worth of trading the top of the bar is the high of the day the low of the bar The bottom of the bar is the low of the day And you have these two little dash marks On the bar one on the left side one on the right side The left dash mark is where that particular stocker index opened for the day And the dash mark on the right hand side of the bar is where the stocker index closed for the day So This was the range for the week pretty small range not a lot happening Although we had a lot of big name companies putting out earnings this week So i'm surprised that the market remained very subdued as it did NASDAQ a little bit more movement only because we had a lot of big name players Announcing earnings apple google amazon Microsoft Paypal companies like that have had you know that could help that can move Pretty big after earnings, which would typically move the index is pretty good But you know not a lot of not a lot of movement other than amazon which dropped about 300 a share Uh between yesterday's close or i'd say thursday's close to friday's session That's a huge move 300 for for amazon But otherwise the indexes themselves which has made up a lot of different companies Didn't move all that much. So where are we? Where do we stand? Well, I like to teach you about what I look for on the uh in the markets and and how the charts look Since we're mostly looking for bullish trades We like to see stocks and indexes that are moving upwards from bottom left to upper right that shows you It's a upside moving market. I have three indicators on my charts I have a 20 blue day a 20 a blue 20 day simple moving average I have a red 50 day simple moving average and I have a green 200 day Simple moving average down here. I have an rsi, which is an overbought oversold indicator The defaults are 70 and 30 that would entail overbought or oversold levels I bump mine out to the 80 20 levels because I really want to know if a stock or an index is really overbought or really oversold So you can see how the rsi kind of meanders between the two wide ranges And just because something gets overbought doesn't mean it's necessarily the stock is due for a pullback right then in there It's just telling me that hey this this market's a little overheated keep an eye on it so here we have the nasdaq e-mini futures right here and It's definitely in a nice uptrend and when you have a stock that's in an uptrend Or or a downtrend they will typically hug the 20 day or the 50 day moving average You can see the nasdaq has been hugging this 20 day moving average for a while It will typically act as support as long as the uptrend is still intact So when when the index or stock pulls back It will typically pull back to one of these lines to 20 day or 50 day and then bounce You can see the 20 day has been holding the nasdaq pretty good So, you know things are still looking strong for the market earnings have been real good You know except for amazon most most companies are beating estimates and still projecting out for the you know The rest of the year things look pretty good. Oh, that's that's what will keep the market moving higher If companies are saying, you know, the future looks bright, then typically stock prices will follow Let's take a quick look at the e-mini s and p 500 futures and then we'll look at the spy the e-mini s and p 500 right here This this week right here very tight range not a lot of activity So there really wasn't much happening not much for for us to do except sit and watch for the most part As you can see nice uptrend still and also bouncing either off the 20 day or 50 day And I and I tell my students, you know, if you're looking to get in on a bullish trade That's already made a move then it's better to wait for it to pull back There are always pullbacks normal ebbs and flows to the market You can wait for a pullback to the 20 day or 50 day if it pulls back to the 20 day, you know Maybe dip your toe and buy a few shares because if it keeps pulling back Then you can buy some more shares once it bounce bounces off the the 50 day Or you can just completely wait until you see a bounce off the 50 day Sometimes it pulls back to the 50 day. Sometimes it doesn't so, you know, it's up to you to decide what you want to do Let's take a look at the spy Which is the exchange traded fund for the for the sp500. This is what this is what if we were going to trade something This is what we would trade it acts just like a stock as you can see I have past price past patterns on here to kind of gauge and show us where the stock may be moving next The w pattern that I have here is pretty bullish pattern, especially when it comes from Down low, but even if it makes a w pattern up here It still is considered a bullish pattern once it gets above the resistance line We have congestion patterns triangle patterns that help us gauge when a stock may be ready to bounce We have this congestion pattern, which pretty much means once you got this up trending line And it's hitting a flat top once it blasts through the flat top It should keep going in that same direction, which is what it did We had a little pullback last week, you know that last thursday friday and monday We had this nice little pullback bounce right on the 50 day moving average here So if you're looking to get in this could have been this would have been a nice Point of entry and obviously the market has moved up So as far as where I I see the market going the market still looks strong. There's really nothing to derail it Yes, we have the covet delta variant, which is wreaking havoc at least here in the us People who are not vaccinated are getting sick. This is a more contagious type of of the covet And and it's and it could make you feel even worse If you get it, so this is what's going through unvaccinated persons right now And even if you've been vaccinated, you can still get covet, but you won't get as sick so You know About half of the the us has has been completely vaccinated trying to get that number higher But as far as businesses are concerned because that's that's really what moves the market as long as companies are still Producing good profits and projecting good numbers for the future Stock prices will still go up the stock market really is the only place to get any return on your money So people are still heavily invested. They want to get on board. So that extra demand also pushes prices higher There's really nothing for me to say that you know The next bear market is about to happen because there's nothing out there that's suggesting a bear market should happen So we keep going along until the market tells us otherwise the market's going up until something comes along and pushes it down We we we remain on the long side and we keep selling put options if we can find them So that's the spy Let's take a quick look at the the dow Jones industrial average And last week had just you know made all-time new highs hitting above 35,000 for the first time But you can see it's still kind of hugging on this resistance top right here And you know if you want to draw the ascending triangle the ascending triangle is where the bottoms are you know trending The the trend is up, but it's but it's hit this resistance up here Okay, so this this little triangle is what's called an ascending triangle pattern You're getting the movement to the upside, but it just can't blast through here But once it does it should go pretty hard Okay, because it keeps popping popping popping up against this resistance. It's trying real hard And eventually hopefully it'll get through it. It might get knocked back down again But we have this ascending line right here that should catch any Down movement and then it'll blast through you know, that's just the way I see it So it could meander around here a little bit more wait for The rest of the earnings to come out over the next few weeks And then we may just get going, you know summer is pretty slow anyway as it is Uh for trading and once you know late august early september when everyone's getting back into it We could probably see this thing move pretty hard if it hasn't done it so by then Okay, so that's the dow Jones things look good Uh waiting for the you know, maybe next week. We'll have more uh a wider range Well, let's take a look at some individual stocks See what happened. Let's pull up amazon first because that had a huge move Um came out with earnings thursday after the close and then friday it had its huge move down So let's take a quick look at amazon it had been in this wide long channel for a very long time stretching back to Last summer june july 2020 finally broke above the resistance here came back down just slightly under the resistance line You can see right here, but then Powered back up, but then here we got the we got the earnings right here Created this huge gap right here Gap is when a market closes at one level and opens at a completely different level the next day Typically happens every day in the market, but this one's pretty dramatic. You know, this is like a three hundred dollar Gap window right here eventually should be filled most gaps are filled meaning eventually amazon will start to move back up And it will this number this space will be filled up over time, you know, as long as amazon produces Good earnings next quarter So for now, there's a lot of damage that has been done So I can see amazon probably meandering around here for a while People have to lick their wounds, you know The buyers have to have a little conviction to want to enter on the long side again So we can see meandering here for a little bit before people are okay with buying it up again So this was pretty big move amazon. Let's take a look at apple We have apple, uh, which you know has hit all-time new highs near 150 dollars a share hit that two times recently right up here all-time new highs So some may say this is a double top double top is when you have Uh, a new high a little dip and then a new high again. Some people will say well, that's it Apple's never going higher again Here's a double top and it should knock it all the way back down. I disagree and we may we may come We may stay off the highs for a short period of time But as long as apple keeps pumping out iPhones and people keep buying iPhones and and computer mac computers You know apple will keep going up over time I mean it took a little while to to get get its groove back here But look at this nice move it's had from 125 all the way up to 150 So it has to digest this nice little move could be a little congestion right here You know, we can always try to draw some patterns here. We've got this Little congestion here. So It it's getting tighter tighter ranges and then eventually it'll blow out one way or the other Hopefully for those that are long it'll go up to the upside. Some will say okay Well, you've got the you've got the double top resistance right here. So you got a little resistance right here And so the next thing that apple will need to do is bounce back up and get above The resistance line to to make more all-time new highs or it could meander for a bit So apple uh congestion congesting right now it's had a nice little move had a nice $25 move and Take a little breather here and we'll see what happens. Um, most likely if You know the numbers have been good apple had a pretty good quarter had earnings come out Numbers look pretty good. So people are digesting those numbers and I think eventually apple will start to go up again Uh might have to give it a little time. We'll see. Okay. So that's apple Google Of course Just is a monster just keeps going up up up up up There's really not much to say other than it's in this incredible uptrend has been hugging the 20 day moving average So on any pullback it's going to pull back to the 20 day here pullback to just about the 50 day So anytime you're looking to get long a stock And you're and you're looking at your your moving averages, you know You can wait for a pullback wait for the little bounce off the pullback and then you can get on board You know, that's if you want to time your entries. Okay Uh, what other stocks tesla Always look at tesla tesla still Just kind of in this range here, but has been in these these congestion patterns Looks like it's just about ready to possibly break out here and move move above 700 dollars again Uh, you know, I'm not a big player of tesla stock I love selling put options on tesla because you can sell some pretty juicy put put options well out of the money Give yourself a lot of buffer For downside action. So tesla as itself as far as trading the stock, it's a little erratic for me I don't trade the stock but but I do like to sell the put options because you can get some good payouts there Um, but as far as where I think it's going, you know, it's in this this triangle congestion pattern It looks like maybe here it it got up to the upside above the line here So maybe it'll keep going For any of those that have interest. Let's take a look at My list here. See what other stocks we'd like to take a look at. Um Microsoft still Looks pretty strong had earnings this week too has been in this uptrending channel hovering up here Um, you know, maybe just congest congesting for a little and probably will continue on to new highs Uh, let me see what other stocks intel Well, um Nike Nike's all time new highs again looking pretty strong That had a gap right here as well. I don't know if that'll ever get filled. That's that's a gap to the downside So here on Nike the gap was created by Nike going up. So you got this big hole here Um, you know, Nike there would have to be some really bad news for Nike to come back Down and drop all the way down here to fill this gap. Not sure if we'll see that happen And for those of you that are long, you don't want to see that either AMD, okay, so let's talk about AMD here. I love AMD as a company You know, we tried to sell some put options right here when it had this nice, you know, $10 pullback We're trying to sell put options. We didn't get filled missed the price And i'm a little upset about that because look how AMD just took off without us involved and that that makes me angry Went from $85 all the way up 86 all the way up to 106 just powered higher this week had earnings It's a big move for AMD in just a couple days. It doesn't usually move that far that quickly, but You know, congrats to those that were long Uh, I I didn't get involved. We missed it try to get in here and it just didn't work out for us and obviously It moved without us. So i'm a little upset about that, but I do still like AMD I'm going to wait for some kind of pullback Because I don't want to get in up here Could be getting into some overbought areas based on the rsi So i'll buy my time. I'll wait for a little bit of a pullback. See what happens on AMD Looked at apple looked at amazon netflix still in this long channel here nothing happening with netflix I think I may have mentioned this last week if you like to sell iron condors, which is a dual Call credit spread and a put credit spread you sell them both iron condor It works great on me andering sideways stocks could be good for those of you that like to sell iron condors Procter and gamble had a pretty good move had some good earnings. So, you know, it was in this sort of sideways channel and has started to move higher What else I can show you that's worthy of of Let's take a look at a down trending stock. We looked at I think we looked at chlorox last week So, yes, here's chlorox. Okay. Here's what I want to show you What I mean by the market will tell you when it when it starts a new trend So here at the beginning of the pandemic chlorox was in this nice major uptrend Everyone was buying chlorox wipes and then it started to push down. So it entered this new down trending channel There's a point where you have to say, okay, the uptrend is over You know, it could have balanced all this time and then moved up again But but it kept moving lower So at some point you have to say, okay, this this uptrend has ended and now a new trend downtrend has started and you can see it it gets it gets Knocked back down every time it started to come along the 20 day or 50 day moving average now here had a nice up move I'm not sure if that was an earnings announcement or not I can't remember that far back early in the year But it was in the downtrend popped above it and got back into this downtrend this long downtrend Started to make a move higher little uptrend here But still we have this long downtrend line containing everything now here Is potential for a chlorox to possibly start to move higher for good starting to form a base over here I'd like to see a little bit more action If it you know, it might bounce you've got this little uptrending line here So it might bounce here and continue to go So I think chlorox could be starting to turn the corner here Maybe making like a nice little rounded bottom and might start to move up I'm going to wait a little bit more time for chlorox to see if it's it's making a move higher for good What other downtrends can I show you? Looked at tesla the the health care stocks have been doing pretty good Eli Lilly, Bristol Myers all the health care stocks looking pretty good. Pfizer I like this sector. We sell the XLV We sell we sell put options on the XLV, which is the health care etf It's composed of all these health care companies. We've been selling put options. I like it look strong continue to go up You know, uh, it you know as long as the the health care companies pharmaceuticals are going up See how it keeps bouncing nicely off the 20 day and or 50 day at the extremes I like the I like the health care stocks Let's see costco mcdonald costco just keeps killing it costco great mcdonald's gotten above this This little channel see this is what you want to do people You want to find these patterns and wait for the the the breakout through the pattern and hope that the the breakout continues And if it doesn't then you get you set your stops if you if you if you buy On the breakout then you set your stop somewhere a little bit back below The channel if you want to stop yourself out or you wait for it to see if it'll break down below Either one of these moving averages So you don't have to take a lot of risk on these trades, but you know make sure you set yourself set a stop for yourself Pepsi's looking pretty good earnings Um, just keeps going strong had this congestion pattern and then finally moved higher What else do we like in here? Twitter is a stock that we've been playing too sold some put options on twitter What I like about twitter I like this uptrend that it's that it's on you can draw lines now You always like to try to connect the lows and then you can connect You can connect some of the highs come on And then you can form this little channel. So now you get a better visual representation of of what the stock looks like what kind of pattern it's making okay, so It should keep bouncing off off the uptrending line, which means it'll keep going higher So, you know bounce off the the 20 day moving average. So I like twitter here things looking good for twitter You know, that's really about it not much else. I don't really like to look at these these Meme stocks anymore game stops not doing much amc is not doing much the bitcoin stocks riot And maro not doing much that's because bitcoin's not really going anywhere All right, so you know, that's really the assessment of the stock market What I really want to do is just show you what I look for on the charts to help you become a better technical analysis trader That's what we do one last time. Let's take a look at the the spy for next week Range was real tight this week But the market continues to go up waiting for the the moving averages to load up here Um, anyway, I like the market staying staying strong staying long. There's really nothing to derail this thing Uh that that I can foresee but you know, you let the mar let the market tell you where things are going All right. Well, that's it for this saturday synopsis of the market. I hope this has been helpful for you Please give me a thumbs up if you like this Give me a comment Don't forget to subscribe hit that red subscribe button in the bottom right hand corner. Send me an email Love hearing from you. Let's quickly go to our website smart options seller We sell put options. We sell put option spreads get a copy of our free put selling basics ebook Go to our website Click on here put selling basics put in your name and email. I just will send you a free copy Also a couple things that we do services tab right here We have our two newsletters and our one-on-one coaching if you need a little help Getting to the next level. All right, so that's it for me today Uh, I hope everyone has a great weekend and a great trading week ahead. This is lee lull signing off