 Hi everyone, Lee Lowell here from smartoptionseller.com. How are you all doing today? It's Saturday, September 4th, 2021. Welcome to another edition of our Saturday synopsis. Listen, I've been out the last two weekends. If you've been watching these videos, you know there's been an absence here. I did contract COVID a couple of weeks ago, so I was out for the count. I've been fully vaccinated, so this was a breakthrough case. I got it, and it was not fun for the last couple of weeks. Definitely felt the effects of it even being vaccinated, so took some time to recover from COVID. Still don't have any taste or smell right now, which is very bizarre. It's weird to eat and not be able to taste or smell anything. So, you know, for anyone that's had COVID, you know, I certainly sympathize with you. I know what it's like. It's not fun even being vaccinated, but I guess the effects were a lot lesser than it could have been. So I'm thankful that I've been vaccinated. For those of you that are also vaccinated, that's a good thing. And, you know, I hope you don't get it. And I hope the rest of the world wants to get vaccinated as well. I know it's a personal decision. I think it's a smart thing to do. But anyway, I'm recovered. Recovered now, did the quarantine thing, and it's good to be back here feeling a lot better. I definitely missed making these videos, but I needed some time to take some time away to just recuperate, get the energy level back. Anyway, so what do we do here? This is our Saturday synopsis. We like to take a look at the charts. We look at stocks. We look at indexes. I'm here to help you become a smarter and better trader, whether that's stock trading, options trading, whatever. Take my 30 years of experience in the stock market and trying to help you to become more of a technical analyst. Technical trading, that's what's called watching the charts, reading the charts, trying to see where a stock may be moving in the future by looking at the charts and seeing what it's done in the past. So it's called technical analysis. That's how I've been trading. So I'm here to impart some of that knowledge on you. So what do we do? Well, we just open up the charts and start looking and looking for patterns. And we look at moving averages. We look at technical indicators. We look at support resistance levels. We do all of that. And it could help you gauge your next trade. A lot of people like to focus on short term trading. Now, the market is very erratic in the short term. Over the long term, over the long run, we're talking decades, the market continues to go up over time. So if you're in for the long haul, you know that the market is bullish in the long run. Short term, it's a lot harder. So you really need to understand what you're looking at if you're trying to become a short term trader, you wanna be a short term trader, you really have to understand technical analysis because it could help you time your entries and exits better. So what do we like to do? First thing we like to do is we look at the SPY, which is the exchange traded firm for the S&P 500. We like to look at the S&P 500 because I believe I feel that's the broadest measure of the whole market. And we can gain an idea of where the market is moving. And most of the time, individual stocks will tend to follow along with the indexes. But we always like to look at the S&P 500 first. For those of you that are new here, I like to look at daily charts. This is a daily bar chart. Each one of these individual little dash marks is these lines, these vertical lines is one day's worth of trading. This is a daily chart. Now we can go and look at different, we can look at different time components. You could back it out to, you can look at a one minute chart. This is what some people do. Very, very short term traders, like hyperactive traders, look at one minute chart. So each one of these lines is one minute's worth of trading. This is the daily chart again. This is one day's worth of trading. And then you can back it out to the monthly chart, which is long term. This is the SPY going back to 1993 or so. So you can see over time, over decades, the market continues to go up. So if you've got a long term horizon, the market's gonna go up over time. But we're shorter term traders here, so we have to really focus on the short term and we use technical analysis as our gauge. So we try to keep it simple. For what you see in my charts is what I use to try to figure out where a stock or market's going to go. I have three different moving averages. I've got a blue 20 day moving average, simple moving average, a 50 day simple moving average and a 200 day simple moving average. Those are the three moving averages that I watch. And then down here I have the RSI indicator, 14 day RSI indicator. It's an overbought, oversold indicator. I use the 80 level and the 20 level as the overbought and oversold areas. Now the RSI moves up and down between zero and 100. And most of the time it's in that, you know, 50, 60 range. You can see that's just sort of in the middle here. And sometimes it'll get overbought and sometimes it'll get oversold. Like back here at the pandemic, March of 2020, you can see the market was oversold. But on the RSI indicator, it had already went oversold before that in February. So it gives you a warning that things are getting oversold or things are getting overbought. Doesn't mean it's necessarily going to turn right then and there, just giving you an advanced warning. So what we like to do is follow the price action. What does that mean? You watch the price action. You watch the actual chart itself to see which general direction it's going. Obviously you can see here, the S&P 500 has been moving upwards. That's good. You go from bottom left to top right. That's what you wanna see, an upward moving chart if you're bullish, okay? And I use this analogy every week. The stock market trades with physics and object in motion tends to stay in motion until something comes along and pushes it in another direction. It's the same thing with the stock market. Stocks will continue on in the same direction with that momentum until something comes along and pushes it in another direction. You use the price action to tell you when things have changed. What could cause the price action to change? An earnings announcement, an FDA announcement, a CEO that's been cooking the books, something dramatic that is gonna push it in another direction. Obviously you can see the S&P 500 has been going up since last March, 2020. Now, how do we time our entries and exits? Well, if you're a chart watcher, you know that that price action tends to move along moving averages. And the market, a lot of people like to watch the 20-day, 50-day, 200-day. When you have enough people watching the same things, the reactions are all gonna be the same because everyone's reacting to the same things if we're all watching the same things. So psychology and mass movement or mass amount of people watching the same things, you're gonna get the same reactions, okay? So when a stock or an index is in an uptrend, a good moving uptrend, when it has pullbacks, it will bounce off the 20-day or 50-day. You can see here, most of the time it's been bouncing off the 20-day and sometimes it bounces off the 50-day, okay? The 200-day really doesn't come into play all that much. Except in extreme cases. So you want to follow along the price action and when you're looking to time your entry to get long, you look for the bounces off the 50-day or 20-day. If it comes down through the 20-day, then you watch for the bounce off the 50-day. You can always dip your toes a little bit on that first try of a bounce on the 20-day. If it doesn't hold, then watch for the 50-day to hold. And you can see, most of the time with a trending stock, whether it's uptrending or downtrending, it'll bounce off the 50-day or 20-day. Now let's look at a downtrending stock such as Clorox, okay? Clorox had a nice uptrend at the beginning of the pandemic. March, 2020, you can see this nice uptrend. And we draw the channels, these are called channels. And something came along last August, 2020 that turned Clorox in the other direction. Whatever it was at that time, whether it was earnings announcements or people just had bought enough Clorox wipes from the stores for years to come, they didn't need any more Clorox products that the market got pushed in a different direction, okay? So here's where the uptrend ended and this downtrend started. Now, if you wanna be long, you wanna be bullish, it's trying to pick bottoms is a very hard thing to do. Yes, you can say, oh, well, the market, Clorox hit a bottom here, I'm gonna get long here. And then it goes up a little, but then it starts to trend back down. Then it had this nice bounce here, but it came right back down again. So it continues to trade in this downtrending channel and everyone who tries to pick bottoms gets burned unless you trade out of it very quickly, okay? So in this case, trying to be bullish on Clorox is not the smart thing to do because it's still in a downtrend. You wanna wait for it to start another uptrend. Now it had this little uptrend here, it had this little uptrend here, but it was still contained in this longer downtrending channel. Now, going back to the SPY, you can see it's in this nice uptrend and it still has support at the moving averages. So if you're looking to get long, you wanna get long with a stock that's in the uptrend and bouncing off or looking to bounce off one of the moving averages. Because if you try to pick bottoms, you're gonna get upset because the market's gonna keep moving down on you, just gonna get frustrated. You might as well pick a stock that's moving in the right direction. A lot of times you'll think, well, a stock's making all-time new highs, it can't go any higher, it has to sell off. Well, if that was the case, look at the SPY, you could have thought that it hit the top back in November of 2020 and December of 2020 and January of 2021, February of 2021. It just keeps going up. So there's nothing that says just because a stock has made all-time new highs doesn't mean it can't keep going higher. That's what stocks do. They keep moving up. As long as the company keeps producing products that people keep buying and the company keeps putting out greater and greater earnings each quarter and they project earnings are gonna get better each quarter. Moving forward, the stock has nowhere else to go but up. That's how the stock market works. That's how prices move. They move according to how well a company's doing. If a company's not doing great, of course the stock's not, price is not gonna go up. So you wanna stick with companies that have increasing earnings over time and that are projecting better earnings over time and the stock's going to keep going up. Yes, we may hit tops here and there. Sometimes stocks go vertical and they have to come back down a little bit but most stocks have that nice uptrending move like the S&P 500. So two weeks ago was the last update I made which was right here on this little down dip right here. Okay, so I think at the time I said watch it. If it comes down, watch for the bounce off the 50 day or 20 day. It didn't touch the 50 day officially but it certainly bounced. That's what people are doing. Everyone's watching the same things. So when you get these dips, these are viable dips. On an uptrending stock you wanna look for viable dips. Bought here, bought here, bought here. Let's look at the QQQ which is the exchange traded fund for the NASDAQ index. Same thing. Let me blow this up a little. Two weeks ago right here, bounce right just about off the 50 day moving average line. So a stock that's in an uptrend motion has got the momentum behind it. You wait for the pullbacks to the moving averages because the stocks tend to track the moving averages and everyone's watching the same thing. Okay, so if you're trying to time your entries you wait for the pullbacks. Okay, so that looks good. Let's take a look at the Dow Jones index because it's been moving along with the S&P 500 and the NASDAQ. Those are both keep making all time new highs. The Dow, as you can see, and we draw triangle patterns, we draw these different patterns. Now the Dow's just sort of been hugging along here just under all time new highs, which all time new high was right here. This was on August 16th. So it's sort of been sideways action. We had this ascending triangle right here. You can see the blue here and also hugging along on the uptrend here. It's bouncing off the 50 day or 20 day. You can draw the ascending line here. Here's the support line. Okay, here's the ascending triangle right here. Once it gets above the resistance, it should keep going in that motion. It looks like the Dow's just kind of storing up its energy here, waiting for that next leg higher. But the indexes look strong. There's really nothing on the horizon, like crazy enough to start moving it into a downtrend. You know, the earnings were great. Most of the earnings are done by now, the past quarter, numbers were good. We know coronavirus is still out there, but people are getting vaccinated. We're hoping that eventually everyone, there will be enough people vaccinated to really put this thing to rest. But yes, that's still hanging out there. There's geopolitical things happening all the time. The US withdrawal from Afghanistan. Yes, it's geopolitical, but will it affect stock prices? Not really, not really. The narrative out there, sometimes people will say, well, the stock market has to sell off because there's too much craziness happening in the world, but that really doesn't matter so much. It's the individual companies that decide how the stock market's going to move. So the Dow, SB500, Nasdaq looks pretty good. Let's take a look at some individual stocks. And we take a look at the more popular stocks. This is Apple, I'll move this over here, Apple Daily, okay? So finally, we've been talking about Apple and it finally, finally had made, it had bounced off the 200 day moving average here. This was back in May. Had to move up, had the resistance line here and it finally broke out to all-time new highs just in the last week or so. This is good. Apple finally got through the resistance and if you're long Apple, you're happy. It looks like it's setting up right here. It's a little congestion pattern and it's probably gearing up. It'll probably meander around here for a couple of days and then move on to the next leg higher. Apple puts out tons of products or a few products that people just keep buying over and over. Apple makes a lot of money. They have a lot of cash on their books. Apple's a great company. Would there be any reason for it to just automatically or all of a sudden drop off and start a bear market? There really isn't any reason why it should. So it'll either meander sideways until enough people say, yep, it's time to get long again. So Apple has made all-time new highs this week and it's eventually just gonna keep going up. As long as the company stays in existence and keeps pumping out new iPhones. Okay, let's look at Tesla. And if you've been watching these videos over the last few weeks, you've been hearing me saying this is a very ugly looking chart. There's really not enough of a pattern that tells me, yes, Tesla is definitely has the momentum moving up or it has the momentum to go down. It's just been this ugly sideways action. Now, you can see this upwards channel right here that I drew from a few weeks ago. So it's contained in this upward channel here. And if I had to make some more lines here, you know what, let me get rid of some of these lines so we can kind of get a clearer picture of what's happening with Tesla. I'll get rid of all these old lines here. So we can kind of see it a little bit better. Get rid of these triangles. All right, and let's kind of get a better picture. I'll leave these up here. These are congestion patterns. Obviously they fell to the downside. When you have a congestion pattern like this, it's either gonna blast higher or lower. Obviously it moved lower. But we have this uptrending channel that's starting. So it looks like Tesla, excuse me, looks like Tesla is definitely on the move upwards. So this is good. 550 right here seems to be the bottom. It did not wanna get through 550. So Tesla once again seems to be that it wants to continue to move on in this channel here. Let's, maybe we can redraw these lines. And it's all about finding the support and resistance and the line so we can draw a new bottom. You connect some of the bottom lines. Okay, draw it out here. Connect some of the top lines. So it's got this channel that it's in, okay? And it's a little bit upward sloping channel. So Tesla will probably bounce in between here. Can't see any reason why it's gonna go vertical or drop real hard until earnings comes around next and sometime in October, I believe. So Tesla is sort of still kind of sideways action. Someone put a gun to my head and I had to make a decision. I'd say it's gonna keep going up in this channel here. All right, so that's Tesla. Let's take a look at some of the other stocks that we like. Let's take a look at Microsoft. Microsoft, definitely strong stock. Look how it's been hugging on the 20 day moving average. It was in this uptrending channel and just kind of blew up above the uptrending channel. So Microsoft looks good. If you're looking to time your plays, your long entries, you can see that it's been hugging the 20 day moving average. So the next time it comes back close to the 20 day moving average, that could be your next time to get long. But people will say, but it's hit all time new highs. I don't wanna buy at a new high. Well, you could have been saying that all along. Here's all time new highs. Here's all time new highs. Here's all time new highs. What are you waiting for, right? No one's gonna ring a bell and says, the bottom is in or it's hit the bottom. All you can do is draw these chart patterns. And even though it's made a new high, it doesn't mean it can't make another new high. Obviously you can see it. It's making new highs all the time. So you have to just bite the bullet and get long and hope that the market continues in that direction. As long as it has the momentum and hugging along the moving average lines and the company's putting out good products, the stock's gonna keep going up. That's just how it works. Let's look at Intel, Intel, not so good. Intel is in this down move. Trying to get long Intel, not the smartest play because it's got downers momentum. Why do you wanna try to get long a stock that's got downwards momentum? You'll just frustrate yourself. So stick to stocks. Now if you wanna short the stock, you can see that it kinda hugs the 50 day and 20 day moving average that are now down sloping. The moving averages are down sloping. So if you wanna try to short the stock, you can do that. I don't wanna short an up trending stock. So you wanna short a down trending stock if that's what you wanna do. I don't like to get short stocks because most of the time stocks go up as long as you pick the right stocks. Let's take a look at Oracle is also a stock that we like as a nice uptrend been moving up, had this ascending triangle right here and eventually made its way higher, been hugging the 20 day. Cisco also had the same ascending triangle eventually moved up and hugging the 20 day and 50 day. So watch for the patterns. Patterns help you. Watch for the pattern, see where it wants to go. AMD, we always look at AMD. AMD had this power move higher pulled all the way back to the 20 day moving average. We sold some puts when it started to pull back. We're waiting for the bounce and now you can see the bounce happen. It bounced right around here, bounce off the 20 day moving average and it's starting to move up again. So we like AMD. What other stocks Netflix has been strong of late. I think Netflix made all time new highs recently. Yep, right here made an all time new high, had been in this channel. You can see it had been long and long in the channel. Maybe if we had extended the resistance line, you can see it would have popped right through it. So Netflix looking strong, Amazon almost looks like the same pattern as Netflix in this long channel here. This is where it had bad earnings dropped about $300, $400 a share, $300 a share, but it's finding its way back. That's what strong companies do. They have these one off earnings announcements and people realize, you know what, Amazon's the biggest retail, online retail seller in the world. How are you gonna hold down Amazon? So people finally decided this is as low as it's gonna go and it starts to rally back up. So that's what happens with these stocks. Let's see what else we got. Nike has had the nice power of higher sitting on the 50 day moving average. I'd wait here to see if it's gonna bounce off the 50 day moving average. Maybe it'll drop back down a little to try to fill up some of this gap space. I have no position on AMD right now. Let's look at the XLV because we've been selling some put options spreads on XLV. This is the healthcare exchange traded fund. Look how nicely it's been hugging the 20 day moving average. You got all the healthcare and pharmaceutical stocks in this ETF. This is the XLV. I like how it hugs the 20 day moving average we got into a trade very recently on XLV. What else, what else, what else do we have? Procter Gamble, another quality stock looking good. A Walmart. Let's take a quick look at Walmart. Walmart had made this ascending triangle which is a bullish pattern. Once it gets through the resistance, it should keep going. So it blasted through the resistance, pulled back a little bit to the 20 day moving average, finding its footing here. So it looks like the next move for Walmart should start to go higher, looking for all-time new highs in Walmart. Disney in this little channel here. Let's take a look what Disney was in the up channel, is in the down channel, and now the sideways channel. So we're waiting for Disney to pop above 185 and continue to move higher from there. For now it's kind of stuck here. So if you're waiting on Disney, wait to see a couple days worth of the next move higher before maybe before getting in. Or if you wanna dip your toes in here, you could dip your toes in. Sitting right on support, all three of the moving averages, 50, 20, and 200 day, all converging here. So that's probably gonna hold good support right around the high 170s for Disney. This could be a good place to enter a bullish position because it's got the sideways momentum, but it's bouncing right on all three of the moving averages that I track. So wait to see the next couple of days if it bounces, if it does, it's probably starting to move on the next leg higher. That's Disney, great company as well. Some of the healthcare stocks, Eli Lilly, nice up trend, Bristol Myers, Bristol Myers. Now we can see BMY was in this channel, kind of fell through it this week. What's it gonna do? Well, you have to wait to see now. You wanna see if it's gonna hold and maybe bounce off the 200 day moving average. But if you're gonna buy an individual stock like BMY at this point, you may wanna see if it catches its footing force or if it's gonna come back down to the 200 day moving average. So that's Bristol Myers. Pfizer also had up trend pulling back. Merck also in this up trending channel bouncing off the bottom of the channel. So these are the things you wanna look for. Okay, Kellogg, not much happening there. Let's see what else, other stocks we have PayPal. I like Square. We've got positions on Square. This is Square. This is the daily chart for Square. I like the up trend that I was in waiting for these moving averages to filter in here my internet connection to catch up to what's happening. Here we go. So Square has been kind of hugging the 20 day moving average. Sort of in this channel, we can draw some lines here. So we have some resistance here, popped above resistance a little bit, but you have the nice up trending. You have the nice up trending right here. So you have that ascending triangle. It's on the up trend and trying to get through the resistance. So it looks like Square is gonna hug along the up trending line, hopefully blast your resistance and keep going higher. These are the things you wanna look for. You can even draw, you can even draw the channel right around here. Okay, you can see where it's bouncing in that channel. All right, so these are the things you have to do. You know, technical analysis. This is all about watching the charts and looking at support and resistance levels, finding patterns, takes time, but it helps. It helps to time your entries and exit. All right, so that's pretty much it for our, let's see what Facebook's doing. Facebook is also in this nice up trending channel here. Pull this out a little, Facebook keeps bouncing within this channel, right? So you wanna watch for the channels and you wanna time your entries off the bottom of the channel if you wanna get long or a bounce off the moving averages. That's just how you do it. That's how these stocks work. All right, so that's all for your Saturday synopsis. Once again, I like the way the markets look. Things look strong. There's really nothing out there that's going to derail the uptrend. Sure, we'll have ebbs and flows. Stocks will go up, stocks will go down, but right now it's in a bullish mode. So if you're looking to time your entry, wait for a bounce, wait for a bounce off the 20-day, 50-day or some other area of support. Use those chart patterns to help gauge where the stock's going next. All right, so let's quickly look at our website, smartoptionseller.com. You know, we're big put option sellers here. Download your free put-selling basis guide. Go to our website, smartoptionseller.com. Click on put-selling basics. It'll take you to this page and you put in your name and email address. We'll send you a free copy. It's all about put-selling, how to do put-selling. Also, our services tab right here. We have two newsletters right here, smartoptionseller and vertical spread trader. And we have our one-on-one coaching to help you get over the hump. If you need a little lesson on what options are or just you wanna talk about stuff, sign up for a one-on-one coaching session right here on our services tab. All right, that's it. I hope this video has been helpful to you. I hope I gave you some good information. Don't forget to subscribe to this YouTube channel. Hit that red subscribe button. Leave me a comment below. Give me a thumbs up and send me an email. I always try to answer. All right, so that's all for me today. I hope everyone has a great weekend and a great week ahead. This is Lee Lowell signing off.