 Hi, everyone, Lee Lowell here from smartoptionseller.com. How's everyone doing? Today is Saturday, June 26, 2021. Welcome to another edition of our Saturday synopsis. This is where we take a look at the charts. We look at the indexes. We look at individual stocks to see what they've been doing and see where they may be going in the future. This is a new format for us. I typically will offer up an options trading strategy as a first part of the video and then go into the Saturday synopsis. But due to some feedback from people that are looking for smaller chunks of videos, I've decided to break these videos into two separate videos. I just recently recorded the options trading strategy for the day on covered calls. So if you're looking for that option video, look for it on the YouTube channel here. It's on covered calls. It has the same date today, June 26, 2021. And this is the Saturday synopsis video. So we're only going to look at charts here. We're not going to look at an option trading strategy. So I hope this format works for many of you. People are saying they like to see shorter videos. I understand that our videos will run maybe 50 minutes in length sometimes. That's a long time for people to sit there and watch. I understand that. So hopefully this new format of cutting these up into two different videos works for everyone. So let's just jump right in and go into our Saturday synopsis. Take a look at the chart to see what's happening. We always open up first to the S&P 500 as represented by the SPY exchange traded fund. This is a barometer, a good barometer of the overall market. So we always look at the SPY first to give us an idea of what's happening in the market. As you know, if you've been watching my videos for months now, you know I've been bullish. The market has been in a great uptrend and one of the things I do, my goal here is to try to help you understand how the stocks work, how to get a gauge of how to read charts and why would you want to read charts and how to figure out where stock or index may be headed next. The backbone of having profitable trades is by watching stock charts and understanding stock charts and how to read stock charts. Some people use fundamental analysis and others use technical analysis. Technical analysis is what we do. We look at the charts. Fundamental analysis on a stock is all about the underlying factors of that company, you know, what they are, what sector they're in, how are their sales growing, how are their earnings growing, how's their revenue growing, how are their dividends paid out, you know all these things, what's their PE ratios, all these, you know, these calculations, all the statistics and data on the company itself. People try to gauge, is it a worthy investment? Just based on those things, I use the stock charts to tell me which way I think the stock is moving next and so do millions upon millions of other people. So my goal here is to always, is to teach you how to look at these charts and look for patterns and support and resistance levels and indicators that those are these certain lines on the charts that help you gauge which way you think a stock is moving next. So what you see in front of you is the S&P 500, which is a great barometer of the general health of the market. And we have patterns and previous markings on the charts to see how our predictions turned out over time. Okay. And I always tell you what I have on the charts, keep it pretty simple. I have three moving average lines. I have a blue 20-day simple moving average. I have a red 50-day simple moving average. And this one is the 200-day simple moving average. Those are the only three moving averages that I use 99% of the time to help me gauge which way a stock is moving. And down here is the RSI indicator, which is an overbought, oversold indicator that I use. I had the horizontal lines at the 80 level and the 20 level. And you can always set those bars at any level you like. And this is a 14-day RSI. Okay. And it'll fluctuate between the 80 and 20 level. And when it gets above 80, it typically means the stock is getting overbought. Doesn't mean a sell-off is going to happen right then and there. But it's just alerting you that, hey, this stock's getting a little overbought. You may want to watch out for somewhat of a pullback. And when it gets down to the 20 level, which is, let me show you what happened here, the 20 level is when the stock is showing some oversold conditions. Now, obviously, you can see here, the stock was oversold, but the price action still hadn't dropped all the way yet from the pandemic. So this is not an imminent thing saying it's going to bounce right now. So you have to watch it for a little bit because here it hit 20, but the price was still up here and it still had a long way to go. Whereas here, it's overbought, had a little pullback, but then it just kept going up. So I use this as just a gauge to tell me, hey, is this stock overbought or oversold? But I don't, I know it's not, the turn is not imminent. But I use it to just kind of give me a heads-up warning. But it's what I see here on the chart itself, the price action, the direction of the price action is what I'm looking for. Obviously, since the lows in March 2020, stock market has gone straight up. But you can use the moving averages to help gauge when you can get into your next trade. There's always pullbacks. All stocks, stocks ebb and flow, they go up, they go down, but you want to see them go up in that overall upward trajectory over time. And having pullbacks along the way is totally normal and something that's necessary for a properly functioning market. But what you want to try to do is time, if you want to time your trades, you want to time your trades to when the stock has a pullback. Now, typically when a stock's in a nice uptrend, the stock will typically bounce off the 20-day or the 50-day on a pullback. You can see here the SP500 was always bouncing off the 20-day or the 50-day. And if you want to try to time a long entry, a bullish entry, you can wait for a pullback and wait for it to start to rebound again. Now, that would have worked perfectly all these times that maybe you waited for a pullback. We also look at patterns, price patterns to tell us where stock may move next. Now, this is what's called a W pattern, typically a bullish pattern. Once it gets above the tops of the edges of the W, as we saw here, as long as once it got above this blue line, it started to move up. Now, you have these triangle patterns. Those are congestion patterns. When a stock starts to get in tighter and tighter daily ranges, this is a daily chart. This is a daily bar chart. Each bar bar is one day's worth of trading. When it congests like this, the explosion is going to be strong in one direction or the other. Now, what we have here is, let me blow this up a little bit more. So, this is the SP500. This is where we were last Friday. This bar right down here closed on the low of the day. And I said, and we have this ascending, you can see the blue line here, this ascending triangle, which is a very bullish price pattern that you'll see on many, many charts. Okay, this ascending meaning it's ascending, the stock price is going up, it's ascending higher, but it has this kind of flat top where the price could not get above it for a period of time, it's resistance. And once it blasts through it, it should continue to go in that direction for a period of time. So, it had been making, it actually had gone through the resistance, but last week it got knocked back down. So, we finished here, we finished, this is the bar right here last Friday. And in this video last Saturday, I said, okay, well, the SP500 has fallen below the 20-day, has fallen below the 50-day, and actually fell below the ascending support line here. And I mentioned that, okay, well, there's really, I don't see any danger ahead, any major fundamental reason why the stock should sell off. We had the U.S. Federal Reserve talking about raising interest rates, but that's not for like another year and a half down the road talking about inflation. Those things kind of get the market scary every once in a while. So, you'll have these pullbacks. And I said, you know what, this could be the buying opportunity, even though it's fallen, it's your normal pullback. And you know, here in the U.S., we've got the vaccines going out, businesses are opening up, people are spending money, buying products, that's just a great way for companies to earn more money and their stock prices will follow those earnings higher in the long run. So, this was a pullback, yes, it went through some technical indicators, but fundamentally, there was really no reason for for it to be at the start of a new bear market. People are always saying, oh, well, it's hit a top, that's it, it's falling down. Here comes the next bear market, not true, because you could have said that on any number, any of these other pullbacks you think, okay, well, here's the next drop coming, well, moved up, here's the next drop, moved up again. So, don't think that just because something sells off, it means that the next bear market is happening. Well, what we saw here is that last Friday, we ended down here, but look what happened this whole week, had a massive move higher, and has now gone back above the resistance line of the ascending triangle. Here's where we finished yesterday, Friday, June 25th, 2021, market looks good. So, I'm still long, I feel bullish, there's really no reason, there's no fundamental reason right now for the market to have a pullback. And let price dictate, let price tell you where it wants to go. The market is in an uptrend. You have your physics, I talk about this all the time, an object in motion tends to stay in motion until something pushes it in another direction. Right now, the market is in an upward motion with little pullbacks along the way, but there's really nothing that has turned it into a full on down move. Now, what do I mean by a down move? Let's look at a stock like Clorox, great company was doing well in the height of the pandemic and after, but now it's in a downtrend. This is Clorox. Clorox was in this nice uptrend and then something moved it to have a downtrend. That's what I'm talking about. So, here's what the stock market looks like right now. We're still in this uptrend. There has been no reason for me to think we're in a downtrend yet, but if we start to get moves like this, then I will say, okay, maybe we're in a new downtrend. So, this is Clorox. Let's bring back the SPY. So, the market is in a nice uptrend still. It blasted through the, it's gotten through the ascending triangle again. So, the market looks strong. I'm happy with how things look for the stock market. Let's take a look at the Dow industrials and the NASDAQ itself. Here's the Dow. Now, the Dow was a little bit weaker of late and we had another rotation. The NASDAQ stocks that were getting hit a month or so ago are now rallying again. So, they buy some stocks in the NASDAQ and they sell some others, but it didn't last long. So, here's the Dow Jones industrial, had the little sell-off in the last two weeks or so, but has now, just like the SP500, had a nice week this week, rallied higher, rallied above both the 20-day and the 50-day. Here's what we finished yesterday, June 25th. Looking good. Got above both moving averages, still in an uptrend. If you want to draw some trend lines, you can draw, this is all part of technical analysis, you can draw some upward trend lines. So, here's, you connect some of the bottoms, some of the major bottom points. So, here's, this is the Dow. So, the next, if it pulls back, it'll probably pull back to connect with this line right here. This is all in the eye of the beholder. There's no right or wrong, there's no black and white, there's no true rules on how to do these things. I chose these points right here. Somebody else might choose different points. On the upside, you can kind of connect all the upside dots or price points, you can depend. Well, where do I want to move the line? Do I want to connect the major, major points? So, you got something like this. So, here's the Dow in this upwards channel, and it finished above the moving averages. So, the Dow looks good too. So, let's take a look at the NASDAQ composite and see what's happening there. The NASDAQ finally made all-time new highs, had gotten beat up a little bit, it was making, had the W bullish pattern, had the resistance. So, some people will call this a triple top. When it hits the same point three times, it's called a triple top will usually mean it's going to sell off. Stock will sell off, but we have the trying, we have the W pattern, had the resistance line, and here's the NASDAQ made all-time new highs, blasted above it. So, I think the market looks good here. I think the market looks strong. Next week, the market should continue to go up. We don't have earnings coming out till about another month from now. So, there's really nothing on the horizon to really derail these moves higher. Now, this is the NASDAQ, I also look at the triple cues. Let me do that again. Triple cues. This is the exchange-traded fund that tracks the NASDAQ. So, once again, it looks good. We can draw here's, we had some resistance here, draw these resistance line, and the market was able to get above it, had the price action, was able to move above it. All the moving averages are sloping upwards. That's a good thing. So, the market looks strong, and the S&P looks strong, and the Dow looks strong. So, the market as a whole, all those three indexes is what we classify as the market. The Dow, the S&P 500, and the NASDAQ, those three indexes. And they all look strong. They had a great week. They're, you know, the NASDAQ all-time highs, the S&P 500 made all-time new highs right here. Finally got these all-time new highs. The Dow is the only thing that hasn't hit all-time new highs yet, but they're getting close. So, the market is strong. Okay, so things look good. So, we can take a look at some individual stocks now. We'd like to take a look at some individual stocks to see what may be happening. Let's start with Apple, because we always look at Apple, and I'm long Apple. So, that's why I like to look at Apple. Here's Apple. Finally had a good, last two weeks for Apple. Finally, finally got above the resistance line, finally got above the moving averages. It had been bouncing off the Mac Daddy, the 200-day moving average, the Grand Daddy. One, two, three, had some three major bounces off the 200-day moving average, which is basically the last line in the sand. And look at this, had a nice move the last couple weeks right here. So, this is good for Apple. Still has a ways to go until it hits its all-time new highs at $145, but I like the constructiveness of the price action. Looks good. We've got this nice little channel here, this uptrending channel. It's thin, it's a narrow uptrending channel, but that's okay. So, what we want to see is the Apple continue to bounce in this channel here, but continue to move on an upward trajectory overall. We don't want to see it get knocked back down. Most of these big tech companies, they all have their earnings coming out in about a month from now, so we'll see what happens then. But like I said, we're always looking at price patterns. We had this big congestion pattern here, blasted out, went higher, then we had this down channel, then we had the W pattern. So, depending on your timeframe, if you're a day trader or a swing trader, this is hard to trade. This is very erratic. These stocks are very erratic. It's hard to get a gauge of where a stock is going. But if you're a long-term investor, long-term, and we're talking years, all you want to do is you don't want to get scared out by the noise here. You don't want to get scared out by these gyrations. If you're confident in the company itself, you know it's got good products, you know people buy those products, then you really don't have to concern yourself with these daily fluctuations because you're not a day trader, you're a long-term investor. So, all you want to make sure is that the stock is moving from bottom left to upper right. You want to see it go up over time. And if it is great, you have your price appreciation, you get the dividends. If they pay out dividends, you reinvest those dividends, so your stake in the market keeps growing over time and keeps getting bigger. And as long as the stock keeps going up, your portfolio is going to grow as well. You want to be in the stock market because it's been the greatest wealth generator for the last 200 years. Okay, so that's Apple. What else do we have? Amazon. We look at the tech biggies because these are very popular stocks. People like these stocks. Amazon has been in this wide sideways channel for a very long time since last June, basically, up and down, up and down. So, it's gotten near the top of the channel, which is the resistance. Okay? When it hits the resistance, it usually gets knocked back down. So, it got close and Thursday and Friday this week, it sold off. So, will it go back all the way down to the bottom yet to be seen? But if you were long, some shares of Amazon or long call options, this could have been an area where maybe take some profits because it looks like it may want to come back to the norm maybe towards these moving averages. Somewhere in here, who knows? But it's still in this wide trading range. If you're an option seller, if you're selling calls and puts, this has been great for you because it hasn't really been going anywhere. So, selling something like iron condors or strangles could be a good move in Amazon as long as it stays in the range. If it blasts higher or lower, be careful. You don't want to have naked positions on such an expensive stock like Amazon. Let's take a look at Tesla. Tesla had a pretty good week this week, blasted, finally blasted higher. It had been in this tight range here. It was kind of hugging the 200-day moving average. Finally, it rallied almost $100 a share over the last week or so. Good move got above the 50-day moving averages. It's above all the moving averages right now. It's kind of in this no man's land here. Powered higher this week. Still very ugly. I mean, it's just up and down, up and down, but this is constructive right here. This may give other people the green light to say, Tesla has finally moved higher. Maybe we can nibble a little more and get long some shares of Tesla. We have to want to see it continue up. If it gets knocked back down, then it'll probably congest again for a little bit. But this week was definitely constructive for Tesla. What other stocks do we like to take a look at? Google is one that we look at every once in a while. Google has been a very strong stock. I mean, look at this beautiful uptrend. It's just perfectly bouncing off the 20-day or 50-day moving averages. Like I said, if you're looking for an entry, you want to wait for a pullback to one of the moving average lines and wait to make sure it keeps going up. This could have been a nice entry. This could have been a nice entry. Here could have been an entry. It just keeps going up. Nice uptrend. What else do we have? Let's take a look at Caterpillar because Caterpillar had a pretty volatile move to the downside. It had been in this nice beautiful uptrend. If I was about to bet on Caterpillar, I would have gotten long here maybe right here as it pulled back to the 50-day moving average because it had bounced every other time. Bounce here, bounce here, bounce here, bounce here. I figured, okay, it would have bounced here, but nope. Sometimes it doesn't work all the time. It got knocked back down, but look here. The RSI got down to 25%, which is considered actually 20% on my levels. That's a pretty oversold area. For a stock, a stalwart like Caterpillar, that's a pretty oversold. You can see right on this day, the low is where it matched up with the RSI. It pinpointed the bottom pretty good, so it's rallied up. Caterpillar may have found a bottom here. If you're thinking, okay, well, maybe it'll get back into this uptrend. Here's maybe where you could have nibbled a little bit because it started to bounce. I just wanted to show you sometimes the support doesn't always hold and it drops off, but now this may be the start of the next uptrend because it got oversold. Keep an eye on things like that. I want to look at Cisco and Oracle because we looked at the ascending triangle patterns last week, or the last two weeks at least. The chart pattern was moving up, so we drew this ascending triangle right here and it did blast through it. I thought, okay, this was it. This was the next bull leg of Cisco, but nope. It got knocked back down, so this pattern didn't work completely yet, but it still has this other part of the ascending price action. Cisco is still moving up, still moving higher, but it pulled back out of this smaller triangle and now it's finding longer-term support here. Cisco is still in an uptrend. We're waiting to see if it will rally off of this line here and move back up again. Same thing with Oracle. It had the same kind of price pattern. It had this smaller ascending triangle right here blasted above it. I thought that was it. Here it goes, but just like Cisco, it got knocked back down. It had its earnings come out. It had good earnings. We actually sold some put options in our newsletter on this because I like Oracle as a company. I thought the pullback was not worthy of happening, so we sold some put options after the sell-off and the stock has actually started to move back up again. That's working out for us. Sometimes pullbacks in good companies on a one-off earnings announcement could be a great place to step into a bullish trade. That's what we did. We sold some put options down here, but we used strike prices still way down here to give us some buffer. What other stocks do we like to take a look at? What about Disney? Talk about Disney every once in a while. Disney has been in this downtrend here. It had been in the uptrend, but now here's the price action in a downtrend. Starting to move out of the downtrend channel. Is this the move where it finally starts to move back up? Yet to be seen. It's sitting right on the 50-day moving average. Had it blasted above the 20-day, which is good. The 200-day is still moving upwards. For those bullish on Disney, you really want to see a couple days of upwards trading above the 50-day moving average and above the downtrending channel. If it gets knocked back down, it'll come back down into the channel here. You want to wait for some more constructive price action. See it trade up here a little bit before maybe getting into a real long position. What else was there that I was thinking of? Let me take a look at some of the other stocks in the list here. Oh, how about Nike? Nike was a huge one just yesterday. Same thing. Nike was in this downtrending channel. It was hovering around the 200-day, 50-day, and 20-day moving average. Something was bound to happen. It was getting real tight there. It was moving out of the downtrending channel, and then it had its earnings on Friday. Look at this. The biggest one-day move it ever had, I think, was up like $20 a share. All-time new highs. Let's just double-check that monthly. All-time new highs for Nike. Nike, good for you if you're a long Nike, had a nice move yesterday. Let's see what else we have here. Eli Lilly has been making some big moves up and down, too. They're getting some approval for some of their new prescription medicines. It had a big move here, came back a little, tagged 20-day, and jumped up again. Merck, I like the pharmaceuticals because everyone's going to need medicine at some point in their lives. I like the biggies. I like Pfizer and Eli Lilly and Merck, Johnson & Johnson. Those are the big Bristol Myers. Those are the big pharmaceutical companies. We play it with the XLV, the exchange-traded fund for the pharmaceuticals. We play that. We sell put options on that. McDonald's, nothing happened in there. Costco, Costco had a nice move, had that big down move. We talked about this a while ago. Costco really got hit, way oversold bounce right on that same day. Look at the move, the V-shape move. This is what's called the V-shape bounce. Costco's been strong, too. It's just one of those companies. Everybody buys stuff from Costco, these big vendors. Walmart. Take a look at Walmart. If it'll pull up here, prices are not loading up for some reason here. Let's give it a couple seconds. Come on, Walmart. Where are you? It's not pulling up. Something's going on here. I don't know. Maybe a weekend, the data is not filtering in right now. I'm not really sure what's happening. We'll call it a day here. I wanted to show a few more charts, but for some reason, they're not pulling up. Let's go quickly over to our website, and then I'll come back here if we have to. Go to our website, smartoptionseller.com, put selling basics. Don't forget your free guide. Put your name and email address in here. If you want to learn about put option selling, that's what we do. That's our bread and butter. We look for uptrending stocks, and then we sell some put options with a lot of downside buffer. We have our services tab. We have our newsletters, smartoptionseller, and vertical spread trader. Those are the two newsletters we run, and we have our one-on-one coaching for anyone that needs help getting to that next level. I hope this Saturday synopsis, this chart analysis is helpful to you. Give me a thumbs up, if you would, in the YouTube video here. Don't forget to subscribe. Hit that red subscribe button. Leave me a comment. I always love hearing from you. Let's take one quick look. Okay, so good. We got the charts back. Let's go over these real quick. Twitter has had a nice run this week. Look at this. It had a pretty good move. It had about a $10 move higher. We had sold some Twitter puts, took some profits on those. That's a good thing. Let's go back to Walmart. See what's going on with Walmart. Okay, so price action coming in. Walmart is one of those stalwarts that will always eventually go up over time. Right now, it's kind of fallen down a little bit. I'm waiting to make sure it goes above the moving averages here if we want to get in. Right now, it got sold off a little bit. Any other stocks we want to talk about here? We talk about the meme stocks. I'm not involved in those. GameStop still going strong. AMC could be forming a little triangle here. This is what we do. We do some tops. We do some bottoms. And now you got this congestion pattern. It's going to break out either higher or lower big time eventually. I'll blow this up here. It might meander a little bit more, but eventually it's going to blast higher or blast out of the triangle. That's how the triangle patterns work. It's all about looking for price patterns to see where the stock may move next. Okay, well, that's it for me today. I hope this has been helpful to you. I hope you like this new format of we just do one chunk of videos here. If you're looking for the covered call video that we just did, look for it within this YouTube channel as well. And that's it. I hope this is helpful. And I hope everyone has a great weekend and a great week ahead. This is Lee Lowell signing off.