 Hey everyone, Lee Lowell here, smartoptionslow.com. Welcome back to another Saturday Synopsis edition of our weekly chart reading session. It's what we call the Saturday Synopsis. Today is Saturday, April 16th, 2022, moving along here in April. It is Easter weekend, so happy Easter to those of you who are celebrating around the world. So what do we do here in the Saturday Synopsis? Well, we look at charts, that's what we do. I'm a technical analyst. I look at charts, that's how I decide when to get in or get out of my trades. I've been doing this for 30 years. So I make these free videos to help you see what I'm seeing and try to teach you a little bit about chart reading and maybe it could help you as well in your own trading activities. So let's just jump right in and do like we always do every weekend. Start looking at some charts. As we do every weekend, we always look at the SPY, which is the Exchange Traded Fund for the S&P 500. We like to concentrate on the S&P 500, or at least I like to concentrate on the S&P 500 because it gives us the best overall broadest view of the market as a whole. And we like to follow the indexes and the S&P 500 obviously consists of 500 different stocks, good broad diversification. For me, as a form of investment, I believe the S&P 500 is a great way to save for retirement. That's what I do when I want to do my monthly or weekly investments into the market to pad my retirement account for the future. I just buy shares of the SPY and just let it run. That's what I do. Time in the market is a better way to make money than trying to time the market. So time in the market. Time is your ally over the long run. So you wanna spend more time in the market than trying to time the market. I mean, trying to buy bombs, trying to sell tops. It's very hard to do, very hard to do. So I just let it go. But that's just for me. Anyway, so we like to follow the indexes because they help lead the market and most individual stocks will tend to follow the indexes because on a daily basis, there's not a lot of information that's moving individual stocks other than four times a year when you have your quarterly earnings and every once in a while you get an announcement a new product is launched or a new CEO or something that the company's doing. But otherwise, where the indexes go, the individual stocks will typically follow. So that's why we like to follow the indexes. And I use the SPY, the S&P 500 as my main source of which way the market is telling me it wants to go. So what's been happening? Let's take a look. Let's look at the week prior and see what we saw. Now last week, last Sunday it was, I made my last video. This is where we were. We were trading right around support here on the converging 200 day and the 20 day moving averages were converging right here. The market had had a little bit of pullback after this nice big rally. We had this nice big rally about a month or so ago. And then we had this little bit of pullback which I thought would be a normal pullback within maybe a new uptrend. But obviously this week what happened, well we've fallen below the moving averages here. This whole week right here, here is all the action right here this past week. And it was more on the downside. But we had a lot of back and forth, a lot of back and forth hovering right around the 50 day moving average. For those of you that are asking what I have in my charts, I have three moving averages. I have a 20 day, 50 day, 200 day, all simple moving averages. These are widely followed moving averages. So when a lot of people follow the same things, the results tend to be the same things. And everyone tends to, a lot of people watch the same moving averages as I have in my charts. And there'll be variations, some people will do a 20 day, 21 day moving average, a nine day moving average, just various things. What I have here in my charts is not the end all be all, end all be all, but it works for me. And I look at the daily bar charts, the daily open, high, low, closed bars. I don't look at candlesticks. And down here is the RSI. The only other technical indicator I have on here is the 14 day RSI gives us an idea of when things are a little overbought or a little oversold. So what happened this week is that the market has still come down, is still in this little downtrend. And a way to visually help you see which way the market is moving is that you can just draw some trend lines. Okay, so here we can see the market is in a new channel, a new downtrending channel. We always talk about following the price action instead of trying to force your opinions on the market where you think, God, this market can't go up. There's so much bad news out there. The market has to go down or the market has to go up. We like to follow the price action more than anything. Yes, we're trying to make predictions on where the market may be going in the future, but we use the price action as a way to help us figure out that future potential movement. And right now the market's telling us it's in a little downtrend. It's in this downtrending channel so we have to respect that. Last week, I thought the market would probably bounce off. We had the convergence right here. This is where we were last Saturday, last end of last week, and I thought we would bounce and move higher. But obviously the market had different ideas and it kept going lower. So we have to respect that. And the way it looks now is that we, and we finished on the lows of the day on Friday so you can see the little dash mark on the right side of the bar here. That's where we closed. And when you close on a low, that just gives you an idea that the selling was pretty strong and people were finishing out the day on a sour note on the downside. And it has finished, and the S&P 500 is now below all the three moving averages that I track. It was hovering right around the 50-day moving average. Right here, here's the 50-day moving average. One of the important ones, 50-day moving average. And since it finished on the lows at the end of the day, it finished below the 50-day. And now it's still below the 20-day and 200-day as well. So we have to respect the price action. And so I have to believe at this point, we may see some more downside action at least starting next week because we finished on a sour note, on a selling note. So I believe that will just carry over to next week. Does that negate all the bullishness that I've had and have had for a very long time? No, it does not. Because I know in the long run, the market will continue on its upward trajectory in the long run. On a day-to-day basis, it's really hard to know which way the market wants to go. There's so many competing forces out there that on a day-to-day basis, it's anybody's guess. But in the long run, I know the market will go up. I mean, these are just pullbacks in a long, long history of going up. The market goes up over time. That's just how it works. Yeah, we have pullbacks, sometimes larger pullbacks than others, but in the end, the stock market, as I always say, is still made up of companies that are creating actual products that people are actually buying and the companies are having actual, profitable quarters. So if a company is profitable, the stock price has to go up over time. In this very short term, anything could happen. So yes, I'm a bull, but I have to respect the price action and right now the price action is telling me it wants to move lower. And I think early next week, we'll probably start off on a lower note just because of the way it ended last week. So we have to respect that. In our newsletters, since we take more bullish stance, we sell put options, we sell put option credit spreads. Those are more bullishly oriented strategies. So we'll probably be a little bit lighter on taking new positions as the week starts because we have to respect the market. We don't want to take new bullish positions when the market's telling us it wants to go down. Where do we think the market will go? How far may it go, may it fall? That's anybody's guess as well, but we can use the charts to kind of help us gauge where it could possibly find some support. At this point, the next area of support probably could be now if we, let me extend this line here. So if we draw this trend line and just extend it a little bit further, it could give us a potential landing spot if the market keeps coming down, it could come down to the top edge of this downtrending channel because it was once resistance where the market couldn't get above for a while when it finally blasted through. Now it becomes a support area if the market ever comes back down. Now this is a long way down here. Really don't want to see the market come back down here, but you have to use the lows of the last prior few moves as your next potential landing spot. So if the market were to sell off more, I'd say somewhere between 415 and 420 on the SPY is probably the next landing spot. If the market were to go further than that, here's the ultimate spot right here, which would be right around 410 or so, which was this low here on this big bar. So if the market comes off, these are the area or this is the area where the market would try to shoot for. And of course, this top edge of this past downtrending channel would be the next area of potential support. So potentially we can see the market come all the way down here to the 410 to 420 range. I really don't want to see that because I'm a bull. I want the market to go up. But like I said, you have to respect the price action. So we'll see. I think the market may start this coming week on a lower note. Let's look at the triple Qs, which represents the NASDAQ, same thing. We know these tech stocks have been pretty weak of late and they move a lot faster, a lot harder, a lot can fall a lot further than the S&P 500 or the Dow Jones Industrial Average because they're just made up of those big tech heavy stocks that are expensive and can move a lot. So you can see here, here's the price action, just like the SPY, a lot of back and forth. These ranges were pretty good, but still it's below the 50 day moving average, below the 20 day here, and here's the 200 day. So it's below all the moving averages, finished on the end of the day on a low note. You can see the dash mark right there. So the market finished on the lows of the day, which tends, has me tending to believe that we're gonna start on a week note come Monday. So that's what I'm seeing in the indexes as well. We can start to draw this new little down trending channel. So it just gives you a visual of where the market's going. In the long run, I'm still bullish, but now I have to buy my time and I have to wait it out. And if I'm gonna try to do some dollar cost averaging, which is when you buy little bits and pieces on the way down, I have to figure out where my next spot is because I'm building my retirement portfolio with the S&P 500. So I buy some on the way down, dollar cost average. And so I wanna pick my spots, try to pick my spots where I think support is coming in. So with the NASDAQ, just like the S&P 500, here's the area where we're gonna concentrate on if the market starts to pull back, right in this 320 per share zone right here. This was the last low of this recent move. So that's where as chartist, we look to see where some support may come in or at least where the price action will try to shoot for. It'll try to shoot for some areas where it reached prior. All right, so once again, respect the price action. Things look a little weak. Now let's look at the Dow Jones. Try to hit all the indexes first. Dow Jones has not been as weak. You can see it's sort of been flat-ish for a long period of time. Not a big huge down move this week. Like the S&P 500 or NASDAQ. So the Dow's holding up pretty good. If you follow some more of these old stalwarts, these old companies, some of them were actually doing pretty well over the last week. Some of them have gone up in price and the Dow will reflect that. All right, so the Dow is probably at the moment the strongest of the three indexes. All right, so let's take a look at some individual stocks. As we do, we look at some of the more popular stocks. And let's start with AMD because I talk about AMD a lot and I tell you disclosure that I'm long AMD and that I've been buying AMD. And last week, the 100 level was the support area. Was it going to hold this past week? It had fallen at 100 many times and rallied off of it. Would it do it again? And obviously, if you watched AMD this past week, no, the 100 level did not hold. And it finished on the lows at $93 per share. So me, I've been a buyer near the 100 to 110 level and now I'm holding off. I like AMD for the long run. It's the chip sector, computer chip sector. Computers are not going away and we need chips to be made to run computers. AMD is a big, big player in that sector and I can only believe this is just a little blip on the eventual upward trajectory. But for right now, I'm holding off. I'm going to pull back on my buying activities. There's nothing wrong with admitting, okay, you were either wrong or you're going to scale back your buying activities. So for me, I like AMD, but for right now, support has been breached. So I'm going to hold off. I'm not going to buy anymore right now. That's just my own personal trading activity. Where is AMD possibly going to find a landing spot if it keeps falling? Well, now you have to look back a little bit further. So the last prior uptrend started from somewhere in this area right here. So somewhere between $85 and $90 is where the last uptrend came from once we've reached below 100. So I'd have to believe if the market's still gunning to go lower, $85 to $90 is probably the next support area. So I'll draw it right around 85. So let's keep this support line on the charts for a little while and see what AMD does in the next week or two. See if this support area will hold. I mean, obviously I don't want it to keep going down because I'm bullish, but this is what happens. This is what the market does. If you're going to play in the market, you're going to have to deal with the pullbacks. But I'm holding for the long run. So I just have to buy my time and wait. What I can do, if I think the market's still going to go down, I can do some bearish option trades. I can sell some call credit spreads, which is bearish. I can buy some put option debit spreads, which is bearish, just to hedge myself a little bit. If I think the market action is going down, I might as well try to make a little money, hedge myself against my long stock position. So if I take a bearish option position and it works, all right, so I'm tempering some of the losses that I'll take on the long stock. So these are things you can do. If you have enough shares, you can sell some covered calls too to bring a little income. There's always things you could do with option positions. So that's AMD. Let's look at Tesla because big news this week, Tesla, and we'll look at Twitter too because Elon Musk is doing some stuff. Twitter, I mean, Tesla has been in this little down move here. So here was this all last week's trading right here and it was all hovering just under the 20-day moving average. Here's the blue line here. Here's the 20-day. 20-day still sloping upwards. The slope of the moving averages is very important as well. So it was hovering all week below the 20-day moving average, here's the 50-day moving average, and here's the 200-day. They're sloping upwards too. So all three moving averages are still sloping upwards, which means there's still more bullish momentum or bullish feelings out there with Tesla. If the moving averages are sloping upwards, that means that the market or that stock has been more in an upwards trajectory enough to make the moving averages to slope upwards. So there's a bullish slant still to Tesla and it's trying to hold itself right around to the 20-day moving average. Will it go higher next week? That's all gonna depend on the rest of the mood of the market. But Elon Musk has had some big news this past week about Twitter. Let's take a look at Twitter. Before we do that, what do I think about Tesla here? Well, obviously if the market sells off, the next landing spot would be to connect with the 50-day moving average, which is in the low 900 range, 926, at least for now, and then the 200-day below that around $889 a share. So if the market comes up, look for Tesla to possibly find some support at these next two moving averages. Twitter, you know, the big news last week was that Elon Musk said that he would, first of all, he was gonna join the board of directors. And then he said he wasn't gonna join the board of directors. Then a day later he said he wants to buy out all of Twitter for $54 and change. And then he said he's not gonna, then he says he's not sure he can buy Twitter. And then Twitter decided to put in some defensive mechanisms in place where it would be harder for them to be taken over. So there's a lot of activity this past week in Twitter. So obviously Twitter was around $40 a share. Then Elon Musk was gonna join the board. Then he said he's gonna buy up all of Twitter out. And then the rest of the week, it started to come off. So Twitter's sort of in play, but not sort of in play. We're not really sure what's happening. Obviously before Elon Musk started saying stuff, Twitter was near $40 a share. So if you take all of this activity out, Twitter maybe should be around $40 a share. So come tomorrow when we, I'm sorry, Monday when the market opens up, if there's not any other news out there, you know, Twitter may come off a bit, may come back down to maybe the $40 area. Unless, you know, another company comes in or Elon Musk says, yes, I'm gonna buy the stock or I'm gonna try to buy the stock for $54 or whatever. It's yet to be seen what's gonna happen. So there will probably be a lot of activity in Twitter next week. It could blast or it could drop. It's just at this point, nobody really knows. So if you're gonna play in Twitter, be careful. And otherwise I really have no say on this because now it's just being driven by news headlines. And Elon Musk tweeting about what he might do to the company. So now it's all about the headlines and nothing about the underlying fundamentals right now, the company. So, you know, play it as you wish. Let's look at Apple. Apple falling, as you can see, had a big day down on Friday, which was yesterday, April 15th, Good Friday. I'm sorry, we finished on Thursday. I'm sorry, the day before April 14th was the last day. We had Good Friday, market was closed yesterday. So finished right on the lows. You can see the dash mark here, right on the lows for Apple, close around $165 a share. So went up to 180 and now it's falling back to 165. Support could be coming up. Here is the top edge of the last down trending channel. So could find some support probably in the 164, 163 range if it keeps coming back. If it drops below that, then you've got the 200 day moving average of lurking below around $158 a share. You know, Apple, as we know, is an incredible company. It's going to go up over time. It keeps making iPhones and I-watches and iPads and Mac computers and people keep buying them. Apple's got a lot of money, a lot of cash on hand. It could always buy back more shares. It's making new products. You know, it's going to go up over time. It's just whether, you know, how you're willing to react to these current moves or are you buying, are you using these pullbacks to build up more of a position if you have a position in Apple, all right? So you can see the price action has been going up but you get these full pullbacks. Now, if we pull it, squeeze it like this, you can see this nice little slow upward trend. And you got some pullbacks but when we open it up like this, you know, then the moves look a little bit scarier. You got this huge up move, big down pullback. So it's all in your perspective. You know, when you look at it like this, it doesn't look so scary, right? So that's the way you have to approach the market. If you have conviction in the stocks that you're buying, then, you know, don't sweat the pullbacks. Use it as a potential buying opportunity if you know the company is still doing well. You know, if there's problems with the company, if no one's buying the products anymore, or they got competitors that are just taking market share away from you, you know, then you have to think about, all right, do I want to buy shares anymore or should I get out? So you have to have conviction in the companies that you're looking at. Apple, we know, is a leader, it's been a leader, it's going to keep being a leader. So at least that's the way that I see it. You know, this is not an investment advice from me, it's just my opinions here and what I'm thinking about the stocks. But, you know, too many people worry or too many people are trading very short-term and they're worrying about every single tick of the market. It's really hard to trade that way unless you're, you know, you're a short-term trader and you have a solid system to play these ups and downs. You know, you can make some money that way if you're willing to trade that way. For me, I'm not. I'm just looking for the long-term, you know, five, 10, 15, 20 years. And Apple is going to be a leader for that timeframe. So if I'm buying Apple, if I'm buying shares on Apple on pullbacks, I'm doing it because I think Apple's going to be around for the long run and keep going higher. What do I think? Well, just like the rest of the market, we may be weak but it may find some support here on this downtrending channel and or the 200-day moving average as the next landing spot. Amazon still, once again, has not gotten out of this wide range here. Let me squeeze a little bit more. You can see the channel, long channel. You know, it fell a little bit lower here but now it's gotten itself back in this range. So not much happening with Amazon. I really don't have much to say about it. Found some resistance up here which was, is this the, this is the 200-day moving average and it's falling below that. So it's falling below all three moving averages. Got the 200-day, 20-day and 50-day right here. Trying to hold the 50-day but obviously it closed below it. Here it closed the low of the day. What other stocks? We got these really expensive stocks. People look at it at Nvidia too because it's in the chip sector just like AMD. Week finished on the lows. You got some support here. Let's draw the trend lines. You got some support right around here and you know, if it takes it out, if it, meaning if it goes lower than that, then there's more selling to come. That's right around my level here. Probably around 200 and here I can see exactly if I hover my mouse right on the line. It's right around $206, $207. Where this is the support area. If it falls below that, then it's gonna keep going. If it bounces, then we'll have a pretty solid bounce because here's the support. It's come down here many times. Will it come down and then bounce yet to be seen? But you can use that area, $206, $207 as your potential support area for Nvidia. Let's look at, so what are the stocks that are going up? Let's look at Walmart. We talk about Walmart. So certain companies, Walmart is a stalwart. You know, it's kind of hard to hold Walmart back. I told you my level was right around 135. I've been buying at 135 and we had this nice move higher. Got above the resistance line here. So now Walmart will use this area around 152 as the next support area. Looks like it might wanna get more all-time new highs. These were all-time new highs for Walmart. So Walmart looks strong. Coca-Cola, talk about Coca-Cola. Quality, quality company, great dividend company. Look at this trajectory, higher. No, so there are companies out there that are doing well in this environment that are going up. Stores like Target have had a pretty good move of late bucking the trend of the overall market. Just popping above the 200-day moving average right here on Thursday, closed above it. Here's the 200-day moving average, so Target. So there's parts of the market that's doing well. We've got the utilities. The utilities companies, you know, the energy sector utilities company. This is the ETF for, this is the XLU. Here it is XLU. This is the utilities ETF been doing well since, you know, February. Just gone straight up. I talk about healthcare all the time. Healthcare stocks doing well. We're in some plays in the XLV, which is the healthcare ETF. So that's doing well. We got into a play this week in our spreads newsletter. When it came back down, had a nice pop, we waited for it to come back down to the 20-day moving average, and then we got in. So we sold some put option spreads on the XLV. The individual stocks that make up the XLV, these healthcare stocks, Johnson and Johnson, moving up. Pfizer, I talked about Pfizer last week, had the resistance line here, but Pfizer came back down, but it's sitting on support right at the 20-day. See if it pops from there. Pfizer, Bristol Myers. Look at this incredible move. Merck, look at that move. So healthcare will always, should always do well. I'm not gonna say it always as well, but it should always do well because everyone's gonna need healthcare at some point in their life, whether that's doctors, visits, procedures, surgeries, drugs, whatever. We're all gonna get sick. Healthcare is a necessity for many of us. You know, daily vitamins, daily prescriptions, whatever. So I love the healthcare sector. That does well. Let's look at some other individual stocks on our list. And Eli Lilly as well. So the healthcare sector is still going strong. Verizon, you know, I'm still waiting for Verizon to, I wanna get into Verizon, but it's just such an ugly looking chart that, you know, here's the last pattern that I drew. Here's a ascending wedge here or the uptrending wedge. It's got the flat top. Try to get through it a couple of times, but just couldn't get knocked back down. So I think Verizon, I mean, it's earnings season. So Verizon's earnings are coming up soon. You know, if it can get above this flat top here, convincingly for a number of days, you know, then maybe I'll entertain the thoughts of getting into Verizon. What other stocks? Oh, PayPal, we have to look at PayPal. We have a position in PayPal. We sold some put spreads, but PayPal just couldn't break above the down trending 50 day moving average convincingly. And so now it's pulled back with the rest of the market. You know, finished on the lows of the day on Thursday. You know, I'm not so enthused with PayPal coming back down again, but it's what the market is telling us. It wants to sell off right now. Costco, Costco's always been doing well. We looked at, let's see, McDonald's doing okay, Pepsi. So some of these companies are doing well, bucking the trim. We look at the Berkshire Hathaway, Warren Buffett's fun, still doing great, finding some support at the 20 day moving average here. These are all time new highs. I've talked about the report that I wrote on my website about Warren Buffett and piggybacking him on his picks and doing it for a lot less money and for better return on your investment. If you go to our website and you hover your mouse over the more tab and you click on shop here, you'll come up to the report that I wrote. Those are 33 page report about using the specific options trading strategy, the secret to buying Warren Buffett for pennies on the dollar. So it's intriguing. I love the strategy. It's one of the strategies that I write about in my book. So have a look if you want, but you know, Warren Buffett, his company, his funds is doing very well. And it's not a bad thing to kind of follow what he does. Not advice, just my opinion. We looked at Twitter, so Facebook, same thing. Facebook's coming down, tech stocks. Netflix as well. Another one, let's open this up a little bit more. It's at a very tenuous spot right here. Here's the support line. Possible reverse head and shoulders here, still kind of forming, but finished on the lows of the day. So it could continue lower and violate this low right here. If it goes lower, if the current market goes lower than this spot, then we've got more downside to come. Where is that? Like I said, you have to go further back. Let's look at the weekly chart. Last time Netflix was in this area, was in early 2020, right before the pandemic. And so $300 is probably the next area of potential support for Netflix. So market could be weak next week. That's just the way I'm seeing it. IBM kind of hovering around Google. Google at a potential support, getting your support right at this level here. Let's put this on the screen and then we can check back in the next couple of weeks. So got some support here, trying to get this line straight. And let's do it right around here. Here we go. All right, so we'll see. And that's roughly $2,500 range for Google. Very expensive. Shopify, people asking about Shopify. That's also been one in this massive. Look how strong this downtrend was right here. Open it up a little here. Let me open this up so we can see it a little better, the price action. Finished on the lows of the day on Thursday. Still finishing below all the moving averages. So shop still looking kind of weak, probably gunning for the last lows here, which was right around, let me see what price this was this day right here. Below was 510 or so right here. So that's probably where it may be itching to move to. Shopify, tough one. Let me see what else. We got eBay looking possibly for the 200 day moving average coming down. Peloton still not the greatest stock right here. They had some news this week. I think they're going to start raising their monthly fees or something like that. Let me squeeze this back in here a little bit. Getting the daily chart. Still Peloton, just not a good looking chart. Just still head and lower. I wouldn't want to be involved in Peloton. What else? And then that's about it. We got Clorox hanging on the lows. Colgate had a nice bounce and we already looked at Coca-Cola. So that's about it. Those are the major stocks. Some people have asked me about the airline sector this week. Travel is ramping up. They were having some earnings coming out. So let's look at some of the airlines. American Airlines had a nice move up. Getting above the 200 day moving average. United Airlines. Moving up. Delta Airlines. Doing okay, moving up. What else? We got Southwest. Hitting up on, getting up to the 200 day moving average. So the airline's doing okay. What about the cruise lines? Royal Caribbean. Hanging around. Yeah, it's above the moving average. So the travel industry could be having a good comeback here. Everyone wants to get out there and travel again. So keep an eye on that sector. All right, we're getting on about 35 minutes here and I think that should do it for the individual stocks. Once again, we look back at the SPY. Things look a little weak. How we ended last week. So that will probably portray or move into a little bit of weakness as we start next week. And after that, anything could happen but the momentum is down. So respect the price action. All right, so let's call it there. That's it for the synopsis of the charts. Let's go to our website real quick. And we will look at our put selling basics guide. We're big put sellers. That's what we do. We sell put spreads. We sell naked puts. If you wanna get a little bit more understanding on what that is, why do you sell puts? Get our free put selling basics ebook. Put your name and email address here on our website. We'll send you a free copy then if you want some more information about what we do, our paid services. We have our two newsletters and our one-on-one coaching if you need some help getting to that next level. All right, that's all for today. Hope you liked this video. Give me a thumbs up. Don't forget to subscribe. Hit that red subscribe button. Leave me a comment, send me an email. I'll always try to answer. All right, that's all for me today. Hope everyone has a great weekend. Happy Easter and I will see you all next week. This is Lilo signing off.