 Hey, all right, all right, all right Hello, everybody Lee Lowell here from smart options seller cop today is Sunday September 26, 2021 Welcome to the Sunday edition of our Saturday synopsis We typically make these videos on Saturdays was not available yesterday. So now you all get the Sunday version What do we do here on our Saturday slash Sunday synopsis? We take a look at the charts. That's what we do. We look at the charts. We look at the indexes We look at individual stock charts so I can help you become a better trader. I've been in this business 30 years I've looked at probably hundreds of thousands of charts over that time and that is how I Determine what I'm going to trade and how I'm going to trade it. I'm a technical analysis trader That means I look at the charts charting is my main source of how I make my trading decisions So my goal here in these videos is to give you an idea of what I'm doing what I'm seeing and what I look for When I'm looking at charts to help me decide, okay, it's time to make the trade So let's just jump right in talk about it and let me show you what we do here We always start with the SPY which is the exchange traded fund for the S&P 500 Which is what I consider the broadest measure of the market as a whole. It's based of it's based in 500 stocks. That's what makes up the S&P 500 Now what we like to do is what you see on your chart is what's what you see on your screen is what's called a Daily bar chart I use bar charts. Some people like to use candlestick charts I stick with bar charts and what you're seeing is each one of these lines here is one day's worth of trading and traders can look at multiple Different time frames or time lengths for their charting and their trading to help them decide Are you a long-term trader or a short-term trader short-term traders like to look at? Let's say one minute charts where in this case each one of these bars is one minutes worth of trading This is for your truly hyperactive Day traders who like to get in and out of trades so they all day long so they look at the the way the charts moving They look at moving averages You know, I'm not that kind of trader basically You know if I want to get into a trade I may use the one minute chart to kind of help me time the trade on that specific day But but we typically default to daily charts now what you see on your screen here is a daily chart of the S&P 500 the SPY going back about two years in time. That's what my real estate screen is showing So what do we do? Well, we always since we here at the smart option seller We are put sellers and put spread sellers Which means we like to see stocks that are moving higher or at least moving flat bullish neutral The bullish trades are good for selling puts and selling put option spreads So when we look at charts, we want to look at charts that are uptrending You start from the bottom left to the upper right So we want to see a stock moving up kind of hugging along moving averages So once again, I like to show you what I have on my charts. I try to keep it simple There's so many different technical Technical indicators you can use and some people think well, wouldn't the more indicators you use be better? Because they're all trying to tell you something. I used to think that as well when I first started out But you end up with charts that have all these jumbled lines on them and eventually you just can't even see anything anymore So I just stick with a few very basic simple Indicators and then I just watched the price action the price action is the movement of the stock itself So what I have on my screen here, and I can open this up a little more. I have a blue 20-day simple moving average a red 50-day simple moving average and this green is A simple 200-day moving average now people ask me what's the difference between simple or exponential? You can choose either a simple or exponential now a simple day moving average We'll take each day's worth of price action and we'll compute it average it out all equally and Exponential moving average has more emphasis on the the more recent price action Okay, so it doesn't it doesn't average them all out on an equal basis I use a simple because I like it. I like to have every day's worth of price action Give the same have the same value into the moving average They won't really differ that much if you put an exponential Let's say you put a 50-day exponential on the chart with a 50-day simple That they're not that much different Okay, but I use the simple and only those three and down here is what's called the RSI indicator it's an overbought oversold indicator and It's a 14-day. That's the default 14-day and The the RSI tells you whether a stock or index is overbought or oversold or entering overbought or oversold area And it defaults to the 75 level and the 25 level as their version of meaning Or the creators version of meaning overbought oversold you can expand those numbers out I expand it out to the 80 and 20 those two levels 18 20 to me tell me whether stock or index is really overbought Or really oversold doesn't mean a turnaround is imminent It just means that hey, we're getting a little overheated or a little oversold to keep an eye on the price action So those are the three I use the moving averages RSI and then I look for price patterns You'll see I have a lot of things marked up on my screen. These are price patterns. We look for W's We look for wedges. We look for flags all those different kinds of patterns that that play out over and over again, and if you want some information on this You could just do a Google search on You know stock chart patterns and you'll come up with websites that'll give you free information And you can see these patterns and and over and over again It's human nature when when a lot of people start seeing the same patterns the same results tend to play out So that's a good thing and so we just watch for these patterns play out So that's basically what I use and then I just watch the price action The price action is whether a stock's moving up or down or whatever kind of pattern it's making now If we're looking for bullish stocks, we want to see a stock moving up And I like to see the stock hugging along either the 50-day or 20-day moving average, okay? And we'll open it up here. So this is the S&P 500 You can see whenever it has a pullback it either bounces off the 50-day or 20-day moving average That shows you a good sign that a stock or index is in a nice trend Whether that's an uptrend or downtrend and I use this every week I say the same analogy every week the stock market truly is like physics An object in motion tends to stay in motion in that same Direction until something comes along and pushes it in another direction Okay, so that's how stocks work. They tend to move in the same direction Until something comes along and pushes it in the other direction What other direct what what thing would come along to push a stock in another direction? The biggest would be an earnings announcement a bad earnings announcement if it's been bullish and all of a sudden There's a bad earnings it could knock it back down doesn't mean it's going to stay down forever You know Fed announcements government announcements Overseas conflicts just major major story headlines the pandemic, you know Back in March of 2020 February March of 2020 the S&P 500 here. Let's back up here S&P 500 was in a nice, you know neutral to bullish trend and then here's where the pandemic hit So something like that is what can cause a market or stock to change direction But you can see how quickly it bounced. Okay. You can't keep these stocks down for long. All right So let's take a look at things and see where we left off last week and compare it to one week's worth of trading So last week we were Here's where we were last week. I had mentioned. This is the S&P 500 I'd mentioned that the S&P 500 had fallen right down to the 50-day moving average and we wanted to see a Bounce because most of the time that the S&P 500 was bouncing off The 50-day moving average or the 20-day and if there was really no reason for for things to come off or to Sell off then it should bounce right there was no major news stories other than the pandemic and things that are happening Around the world, but but there really wasn't enough to change the trajectory There really wasn't enough first all of a sudden all the 500 companies in the S&P 500 to turn into to turn bearish Right, so we're looking for the 50-day moving average to hold and to bounce So this is where we ended last Friday and as we know this week So Monday was a big down day this long bar here was Monday and You know a lot of people got scared like what's going on? Why is this happening? You know there's multiple narratives out there and and people Whenever we have a big move like this, especially to the downside people start to think okay Well, this is it stocks have topped out There's nowhere there's nowhere else for stocks to go but down at this point the next bear market has had is Underweight and and I'm always skeptical of people that talk like that because if you look at the market over time And let's pull out to the monthly where this is the stock market since the early 1990s We'll have pullbacks, but since 2008 2009 we've gone straight up even with the pandemic here still going straight up So there's really nothing that's going to hold down the stock market for very long The way that things are these days Especially when the central banks around the world will do everything they can to keep a floor a bottom under The whole financial system and that includes the stock market. So What happened this week S&P 500 had the big down move on? Monday, and then look what happened the rest of the week. It rallied all the way back up to a To where we were last Friday So if you had gone to sleep last Friday and woken up this past Friday You wouldn't have think anything happened. We're pretty much at the same place as we were. These are the last two Fridays right here These two if you forget about all this junk down here You wouldn't have known any different and you thought things were okay But you have to we have to endure these things sometimes in the market. We have these sell-offs Now this created a gap right here This is what's called a gap where one day's trading ends and then another day begins and there's got this big hole This big air pocket right here that we like to is what we charters like to call We want to call we like to see what's called filling the gap and filling the gap means After the drop you want to see the market action go back up to close the gap here and Each one of these bars that the top of the bar is a high of the day and the bottom of the bar is the low of the day So you want to see the gap close and so what we did looks like on Thursday we close that gap right here. So that's a pretty bullish strong sign We'd like to see that and one of the big the bigger things here is that the market finished You see the little dash mark on the right side of the the bar is the closing price of the day Closing price of the day is very important and you can see it closed Above the 50-day moving average. Here's the close. Here's a little dash mark. So it closed above the 50-day That's that's that's a very strong sign in my book So I think the market just had its little sell-off Bottom feeders came out started to buy it back up and now we're we're hugging around the 50-day moving average Which is a great thing. So we want to see probably a little consolidation here It had a good jump back that took a lot of effort. So probably consolidate a little and then You know start moving up again. We're coming into towards the end of the year. Typically August and September are very very Not friendly months to the stock market. So we're getting towards the end of September Typically October November December can be very bullish. So once we get moving here I can see towards the end of the year rallying up making new highs again. So let's take a look as the SP 500 Let's take a look at the NASDAQ NASDAQ's usually pretty pretty powerful Let's Use the QQQ just like the SPY the QQQ is the exchange-rated fund for the NASDAQ itself So we'd like to watch that we'll blow it up here a little same thing Had the big move down Monday had the air pocket the gap right here and spent the rest of the week Moving up close the gap also closed well above you can see here. Here's where Friday closed Dashmark well above the 50-day moving average that's strong. We like to see that so looking good You know people The stock market's the only place where you're gonna get any kind of return on your investment So people will buy people need to buy stocks and when you get an opportunity like that to to buy on a dip People are going to do it and that's what happened now typically. I like to make sure or I like to see when the stock's moving up that It bounces off the 50-day at least I don't like to get it down to the 200-day. That's a little scary That's a long ways to go people get really scared about that but also can make for great buying opportunities But anyway, I have my I have a loose rule that I that I give a move below moving average at least three days If it doesn't rally back up after three days, then I you know give it a closer look But exactly what we happened. We had Monday Tuesday Wednesday Wednesday just closed above the 50-day here on this day and then Thursday and Friday finished above it So I'm feeling pretty good about the market bowls came back Defended the down move. Let's take a look at the Dow. I don't put as much emphasis emphasis on the Dow Jones It only has 30 stocks in it, but it is a a long-time barometer. Well, let's take a look at the Dow Jones Dow Jones had fallen it had been pretty pretty Flat for a long period of time pretty flat had a big move down last Monday as well came Kind of close to the 200-day moving average But these averages were a lot closer than if you look the SPY or the QQ Q The the the difference between where the 50-day and the and the 200-day. There's a is a lot greater here It's a little bit tighter So the Dow had a little bit of move to give and it bounced right back up still below the 50-day and 20-day still below but but here right here It's it it tagged or connected right with the 20-day moving average. That's good We like it to move back up towards the moving averages. So the indexes look good I think people are enthused. We're getting through September, which is typically not a great month and Moving looking forward to the end of the year. I think stocks are them and the indexes as a whole are gonna keep moving on moving on up All right, let's take a look at some individual stocks here if my Chart will cooperate with me. Give me a second here All right, there we go. So let's take a look at some individual stocks now and see what's been happening We take a look we tend to take a look at the more popular stocks The stocks making big moves just so we can see if there's any patterns developing So let's start with Apple because we always start with Apple and see what we've been doing now here You can see I have a lot of lines drawn These are just patterns and channels that we've drawn. So back here. We have a what's called a congestion pattern It's a triangle and and the ranges get smaller and smaller and smaller Building up this energy and we're waiting for a big move to occur So what happened pop to the upside when you get the triangle It's either gonna pop to the downside or pop to the upside pretty good pop to the upside Then it moved into this down trending channel had a w So there's a lot of things that you can draw on the charts depending on your time frame What you're seeing now that another channel here another channel So the last thing we've seen for Apple was in this up trending channel Broke above it broke below it and now it's kind of hugging the bottom of the this little slightly up trending channel Has fallen below the moving averages has fallen below the 50 day fallen below the 20 day Along with the rest of the market. Here is the gap on Monday rallied back. So Apple, you know in the long run Apple is a great company. We know it will probably go up iPhone 13's just came out So Apple is still these are all-time highs right here. We're not far off the all-time highs I think Apple had the little blip down and I think it'll probably continue to move up probably towards the top of this Uptrending channel here. So in the long run, we can see that Apple is In an upward trajectory just has these little fits and fits and starts along the way But it's still moving up Apple great company in the long run. It's going higher. Let's see what else we have Let's take a look at Nike because Nike had a big move down this week had earnings come out on Friday September 24th. It had this gap down earnings came out. So Nike was in So here's the pandemic was in a nice up move then entered this down trending channel Which was bearish and then all of a sudden it here was Their last earnings popped up greatly popped up a good was it maybe $15 a share was making all-time new highs here then entered this Down trending channel here. Now if you want to know how to do a down trending channel or any channel What you do is you draw your lines and you kind of connect the tops Connect the bottoms and now you got yourself a channel down trending channel and then it had its Earnings came out and it had this big gap, right? So here's where Nike is So it has fallen below where it gapped up. Here's a huge gap up here Will this big gap ever close? I don't know Nike would have to fall all the way down to about $135 a share to close the gap to this last bar right here It's falling down. It looks like the 200-day moving average could be the next Level it might want to hit RSI though starting to get a little oversold a little oversold You can see the last overs It's not really even oversold but the last bottom was when it popped up here and you can see how it was hugging along this Overbought area. It doesn't mean that it's an turn around as imminent Just means things are getting overheated, but you can see Even though it was hugging around overbought levels the stock continued to move higher And then it just entered this down trending channel and here is where the gap is so Nike I wouldn't be bullish yet. Nike's a great company, but we want to wait for some semblance of of a Bottoming out action. What does that mean? That means the stock will sort of trade sideways Trying to find a bottom. It'll hug around this area. You know these next couple weeks will probably maybe start making this Sideways bottoming action So I wouldn't be bullish yet You want to see what the market's going to do the stock's going to do and if it starts to make like a nice Kind of rounding bottom over the success of days or weeks and start to move up again That may be the opportunity to get long. I'm not long Nike yet It's too you have to wait to see what happens after this big gap move We want to see some some bottoming formation But for now it's sort of oversold may new may need that rounding bottom to make me feel comfortable Let's see what else AMD is a favorite of ours AMD had this all-time new highs here and then just has been consolidating that huge move Kind of sideways action here hugging along the 50-day moving average, which is good Want to see that the moving averages help hold the the stock and it did it had the the gap down last week and then It spent the rest of the week moving higher again. So AMD I know is a strong company Had this pullback would I get long here and maybe maybe not maybe not yet If it pops above the 20-day moving average, which is the blue line here start going up Then I'd feel okay AMD's the bottom feeders have have decided the bottom has been hit time to get long again Try to shoot for the all-time new highs. We may see a little more sideways action But that also depends on how the overall market is doing. What else do we have? Microsoft still looking strong Microsoft has just been going up up up up hugging along the 20-day Catching the 50-day and the move down last week the 50 days been holding this thing Microsoft's been very strong I mean if you've been looking for a place to to get in and timing it properly You'd probably want to wait for a move bouncing off this 50-day early last week, which is what it showed Microsoft just strong There would be no reason for me to think that it's going lower Earnings will be starting to come out probably mid the third week of October So keep an eye on the earnings dates if you're getting involved in some stocks Let's take Oracle Oracle's a company that we've sold put options on Oracle very strong I like where it's going had to move down a little bit, but found its way higher again this week Bounced up got back above the 20-day and 50-day moving averages that they're kind of converging right here So that's good. We like Oracle looks like it may want to take out all-time new highs and start another leg higher We like Oracle. Let's see what else we have Amazon always look at Amazon Amazon still caught in this long long channel here sideways channel It had a an earnings drop Created the oh the gap Almost filled the gap here on this high didn't quite hit the low here High here to low here means the gap will be filled not quite and fall fell back down again So at Amazon still kind of caught in this this channel if you're selling Condors or put spreads or call spreads you're doing good because it's kind of staying in this range So that's what you like to be as an option seller. You like to see a range bound stock So if you're a condor sellers, you're doing pretty good same thing with let's take a quick look at Netflix Netflix Was in this long channel as well just like Amazon But finally is moving above it hugging along the 20-day moving average, you know, if we wanted to we could Create a new line. No things are always changing. So it's okay to to redo your lines So we can we can bring this out a little bit and we can see now that Netflix has gotten above the upper resistance once it gets above a resistance or drops below a support It may continue to move in that direction So Netflix looking strong. It may want to try to take out its all-time new highs here So hugging along the 20 days So you want to watch somebody want to see the moving average is sloping upwards as well That means it's a strong uptrend. Okay, so that's Netflix. What else do we have here? Did we look at Cisco Cisco looking decent fallen below the 50 to moving average Not much there park Procter and Gamble good stock Walmart. Let's take a quick look at Walmart because I always talk about Walmart biggest largest physical retailer on the planet Great stalwart great company to hold long term. I mean it goes up goes down sideways up down You have to you have to live with the moves. Okay, if you're just in it for capital appreciation You're gonna get frustrated at times because it really hasn't gone much anywhere since last summer last August it was still trading around the 145 level and Forward ahead of year. It's trading around the 145 level. So price appreciation really isn't My Walmart strong suit here at the moment dividend yes Walmart has a dividend. It's it's a I believe it's in a dividend or aristocrat meaning It's it's raised its dividend every year for at least 25 years probably much longer than that I don't have the chart up in front of me But it's still a strong stock. Okay, it's a bellwether So holding for the long term get that that dividend income is not a bad thing price appreciation Eh, not so much. We likes we can sell puts on it or put spreads when when the timing is right Not much happening here for me for Walmart to make a decision on a trade Disney Disney Disney Disney. Let's take a look for a number of years I lived in Orlando, Florida and Disney had its tentacles everywhere. I mean, I knew so many people that worked for Disney Central Florida. That's all it is Disney employees so many people But I love the company. It's a great company price action though been in this been in this channel bounced off the bottom of the channel so Sideways action is is the call of the day for for Disney. I like to see it go higher But for now, I it's probably gonna meander around here. So not much price action either way with Disney Tesla yes, Tesla we've we we talk about Tesla and I had drawn this uptrending channel for a while and Now it's getting upon the top of the channel is Above all the moving averages moving averages are sloping upwards. That's good So Tesla it just it hangs in there It keep you know, people don't want to see Tesla go down people love Tesla So the stock goes up in this channel here hitting along the top of the channel It may hit some resistance and and maybe start to move down towards the bottom of the channel It's not a lot of price action Maybe about a hundred dollars a share in between here So it could tick down and if you're looking for timing pattern You may want to see a little bit of pullback first before getting bullish Maybe down to here moving averages or maybe down to the bottom But we'll see if the market is strong next week it could possibly pop out above it But chances are it may if the markets a little weak Tesla will probably come back down a little What else do we have? The the health care stocks the pharmaceuticals Lily BMI Bristol Mars. Let me show you that show you Bristol Mars and that we got in a trade here We sold some put options on Bristol Mars because what we like to see is I don't We typically like to wait for you know after a down move like this is a big down move for a company like Bristol Myers, but it started to get the the sideways price action way way oversold on the RSI and what I don't have on this chart is is the volume and Maybe let me see if I could let me put on the volume chart here. So What we have for Let's see. Let's try this here. So volume So what we had here was this spike in volume, I know it's kind of hard to see I'm gonna change these Volume let me see what I can do on the volume. Where's my volume here Well, anyway The volume spiked more than usual right here, which is one of these down move down on the down day One of the down days hit the oversold volume spike That's typically means that that the selling is getting exhausted selling is getting exhausted and It may be coming to a bottom or at least sideways action So we sold some put options still had some nice cushion sold some put options You know down here in these levels and we're liking that Bristol Mars Just just got hit just too too hard for us to ignore. So we got in a play there Pfizer These are all pharmaceuticals Pfizer Merck You know, they're they got hit and so we try to take advantage when we can let's take a look at some other stocks What do we like square? Square and PayPal, but we we default to square. We like square Sort of in this channel sideways action is okay if you're selling options because the stock's not going anywhere And that time decay will be great for you square Has bounced off the 200 day moving average moving higher and it's gotten above both the 50 day and 20 day here So square we'd like to see that kind of bullish price action What else what else McDonald's still strong McDonald's just keeps going up Pepsi we talked about Pepsi before We've drawn the support line for Pepsi Try to drop below it got Came back up. So keep this if you're long Pepsi keep watch on this this line right here. It's about a hundred and fifty $354 you want to see it bounce and start to move higher if it starts to fall through You've got this 200 day lurking below. So Pepsi you might want to see it bounce watch the support here What else what else? Twitter we sold some puts on Twitter. We'd like this. We'd like this price action We like how it bounced off the 200 day moving average and now has gotten above the 20 and 50 Finished on the highs on Friday and Twitter looking to make a comeback looking to keep moving up We like that price action for Twitter. It's all about looking at the price action looking at the patterns Facebook We had a little thing with Facebook this week. We had a position. We got out of it after it fell There are some news headlines that I didn't really like about Facebook That's the reason why I got out it rallied back had we held we could have made more money, but you know what? I don't Facebook there's some things going on behind the scenes that I didn't like so we got out of our trade for a small profit What else is there? Google always looking strong for Google bounced off the 50-day Google just keeps going up I don't like to talk about the the meme stocks Bitcoin stocks and all right So that's pretty much it getting long here 30 minutes. Let's go back to the the index SPY Do a quick little over overview once again The indexes had a big move down Monday rallied all the way back took the whole week to rally back up That's a good sign Right around the 50-day moving average finished above it. I like that. I like that how it finished above So we might see some consolidation here had a big move last week consolidation and then run into the end of the year Higher so that's what I'm looking for. All right, so that's it for the the sad the Sunday synopsis this week I know we're getting around 30 minutes here. I Hope this is helpful, you know, these are the things I look at look for patterns look for the moving averages Just things to help me gauge where stocks go in and go next Let's take a quick look at our website put smartopsinseller.com Put selling basics on our website if you want a free copy of our put selling basics guide to teach you how to sell put options What it's all about why we love it Go to this page Scroll down you can read through some of the testimonials put in your name and email address will send you a free copy and Then if you want to know what else we do here smartopsinseller click on our services tab We have a couple of newsletters and our coaching that could help you get over the hump if you need a little help All right, that's it for me today. I hope this video has been helpful in this YouTube video Don't forget to subscribe hit that red subscribe button at the bottom bottom right corner of this this video and Turn on your notifications. You'll get an email or however. They do it Twitter on your phone when I post a new video You typically on Saturdays. Give me a thumbs up. Give me a comment. Tell me what you're thinking send me an email right to Smartopsinseller as well and I'll answer and I'll help you out Alright, so that's all for me today I hope everyone has a great weekend and a great trading week ahead. I hope to see you here in the future. Take care