 Hey, good morning everybody, Lee Lowell here, smartoptionseller.com today, Saturday, February 6th, 2021. How's everyone doing today? Listen, today we're going to be talking about how to pick stocks to trade. Where to find stocks? How to find stocks? Which ones should you be trading? I still get lots of emails saying, Lee, we understand that you're an options trader and we know that you like to sell put options and you like to buy deep in the money call options. But still you have to find the stocks to trade the options on and that's absolutely correct. So today, once again, I'm going to give you and show you how you can go about finding stocks to trade on and what stocks to pick and resources. I'm going to give you resources to help you find your stocks to trade. So let's jump right in, okay? This is the charts that we use and for me, it's all about looking at the charts. When I'm trying to find a stock to trade, it's all about how the charts look. And by doing so, it can give you an idea of where the stock is most likely going to move next. Now, it's never a guarantee, of course, but you want to put the odds in your favor. So for me, looking at the charts is where it's at because I have some indicators, support and resistance levels. Some people will say, what about fundamental analysis? Don't you want to see the sales and the earnings and the price, the PE ratios and all that other stuff. That's called fundamental analysis. To me, yeah, that's fine. Some people like to do that. If you really want to dig deep into the company, sure, you can do that. And I do a little bit of that as well, but to me, all of that fundamental data, all that underlying data of the company is reflected in the charts. I mean, if a company is doing poorly and they're not growing their sales and they don't have any earnings, the stock chart's going to be going down. But if they're doing well, they got earnings, people love their products, the stock chart's going to go up. So all I have to do is look at a stock chart and I like to see where the support and resistance lies and look at some moving averages. And that tells me what the stock is most likely to do next. So that's how I pick my stocks. Now, of course, I've been doing this for 30 years. I pretty much have a system down in my charting platform here. You can see just a smattering of stocks on the side here. And to me, it's all about day after day. I just continually look at these charts. And most of them are the same companies I've been following for a while. So over time, it's not something that you're going to learn overnight. It takes time. It's a process, just like learning a new skill. You have to learn how to read charts if that's how you want to go forth with trying to pick stocks to trade. So when I pick a stock to trade, number one, I look at the chart. Let's look at something like PayPal, for example. This is a chart of PayPal. Now, obviously, if you're going to get long on a stock, you always want to see the stock moving upwards. And that means from the bottom left of a chart to the top right of a chart. Now, I default to looking at a daily bar chart. Now, some people might say, what's a daily chart? Well, daily chart is you see the price action for one day's worth of trading. So each bar that you see on the screen here is one day's worth of trading. Now, some people who are hyperactive will like to look at a one minute chart. Now, this is a one minute chart where each bar represents one minute of trading and they will try to find price patterns based on the one minute chart. So these are hyperactive in and out many times during the day. These are the types of traders that just, looking to scalp a few ticks here and there and make their money and move on. To me, you know, a long time ago, I tried to do that. It just didn't work for me. It's just, it's too time intensive. It's emotionally intensive and it just wasn't working for me. So you have to find psychologically what works for you. Daily bars for me is what works. And when I want to time my entry, when I actually want to get into the trade then I'll narrow it down to I'll look at the one minute chart to see if I can get a better entry. But if you're investing for the long term or, you know, a longer term, you know, six months a year, two years, whatever, daily chart is pretty much all you need to look at. And you want to see the movement of the chart over time. Now this is going back a couple of years. You can see PayPal, you know, kind of went sideways for a while and then it just, after the coronavirus in March, it just went ballistic. So you want to find stocks, quality stocks in their sectors and you want to follow them for a time. You want to see how they move up over time. But once again, it all comes back to, well, how do I find these stocks? How do I know what stocks to look at? No, one of the things you can do, obviously, is if you're interested in a certain sector, whether it's an airline sector, electric vehicle sector, the computer chip sector, you want to find the stocks that are at the top of the game. Now we like to play advanced micro devices in our newsletter, smart option seller because advanced micro devices is a great chip company, computer chip company. For a while it was always Intel, but AMD has really come on strong in the last couple of years. Now we could pull up a chart of AMD right here and we can see over time AMD bottom left to top right. It's just been moving up. It's a great, it's a great company. Now we can dial even deeper into the monthly charts. So this shows the history of AMD over many, many years going back to the early 1980s. And you can see for a while, it just flatlined. It was a sub $10 stock until late 2016 and it started to go up. Look at this beautiful chart for AMD. Now you contrast that to Intel. Here's the monthly chart of Intel. Now Intel since same early 80s had the nice move up before the dot com bust in year 2000, but Intel was always a great, was really the only chip company for computers until AMD really started to get its act together. So Intel really hasn't done all that much over the last three, four years. And it's been kind of, look at this ugly chart. This is a daily chart of Intel up, down, up, down, sideways for a while. So Intel to me is not the leader anymore. I mean, it's a great company. It's a great chip maker, but we like AMD as far as the, how the chart looks. So it's all about looking at the charts. You wanna see charts that are uptrending if you're gonna get bullish. You want to see that long-term trajectory, but once again, how do you find the stocks? How do I go about finding stocks? So let's start by looking at some resources that can certainly help you find stocks to trade. Now I've showcased this website before. This is a website that can help you get started on building a watch list, building stocks that you may want to invest in. It's called the dripinvesting.org website. And these are all about the high-quality dividend companies. Now dividends are part of a company's earnings that they pay out to the shareholders. And companies that continually raise their dividends over time, they pay out more each year are what's called dividend raisers or dividend risers. And if a company is paying out more dividends each year, that means the company is growing, the officers in charge know that the company's doing well so they can give back more of their earnings to the shareholders. And when you open up, when you go to this dividendinvesting.org website, you want to click on the, let me move myself here, you want to click on the Dividend Champions Excel spreadsheet or you can do it in PDF format. I like the Excel spreadsheet because you can manipulate some of the columns and some of the rows. So you click on that and it'll open up to, and let me pull up the Excel spreadsheet here, it'll open up to an Excel spreadsheet that looks like this. Now along the bottom, you have the title, it might open up into, here's the title page, dividend champions list. And along the bottom are more tabs. You want to concentrate on the Champions tab. The Champions tab is based, the list contains companies that have raised their dividends every year for at least 25 years in a row. Okay, so these are solid companies that you can start creating your watch list. And in the list itself, you can scroll down and it has roughly 148 companies that have raised their dividends for 25 years in a row. Now there's another thing that you can do, they're called the dividend kings. The dividend kings are companies that have raised their dividends for at least 50 years in a row. What you can do is you look in column E here, it says the number of years and that tells you how many years they've raised their dividends. And you can filter out by looking at companies that have only raised dividends for at least 50 some odd years or more. And there's not many, there's maybe 15, I keep clicking on my picture here, 15 out of this 148 or so, you can pick out the ones that have raised their dividends for more than 50 years. And you know those are solid companies. So make yourself a list of the dividend kings that have raised their dividends for 50 years. And then you start watching those stocks. You put them in a watch list, you look at the charts. And if it's a company, you could dive deeper into their fundamentals. If it's a company that you think is worthy of maybe a long-term investment, then you could start making some trades. You can buy the stock, you can buy call options, you can sell put options. It's all about trying to find companies that may jive with your outlook. And the dripinvesting.org, the ones that create this Excel spreadsheet, you can see the latest update was January 29th, 2021, right here. And they update it continuously. I don't think it's every day, maybe every week or every two weeks. So the list, these numbers won't change all that much, but if you wanna get an updated list, just check back to see the date that they use. So here's your number one resource, the dripinvesting.org website and look at this spreadsheet here. Let's take a look at another website that I like to use and I've talked about it before is stockfetcher.com. Stockfetcher.com is a fabulous website to kind of create a watch list. And stockfetcher.com is all based on technical analysis. Things like moving averages and bullish crossovers or bearish crossovers or RSI indicators. Now what stockfetcher can do is you can type in, and they have very easy language, you can type in phrases that'll say, find me stocks that are priced $50 and over that have where the 50 day moving average crossed above the 200 day moving average and has done so for the last 30 days. And the volume of the stock is at least a million shares per day. And you can write all that out in the language that they use and it'll show you stocks making that price pattern. And down here at the bottom, it shows you all the technical indicators that you can use and write in a phrase to help you find stocks. Now, just to show you an example and they have a great support system. If you have trouble with trying to come up with a language to find a certain pattern, email them and they email you back pretty quickly within a day or so. And they tell you, here's some suggestions and they have this community, they also have a community, which this general discussion, they have forums here. So you can always go into the forums and see what other people think and you can ask questions. So it's really a great website. And you can use it for free, but if you want to use their paid services, which really gives you more stocks from the filter. If you just use the free version and you type in a filter, they'll give you the top five stocks that meet that requirement. If you want more than that, you have to pay for it. And it's super cheap anyway. I think it's like $9 a month. So it's a great website to start looking for stocks. Now, here they just, they give you some quick examples. You can click on the quick examples here to click the down arrow and it'll give you popular examples. You got to click on it and it'll say a MACD bearish crossover. Let's just click on this MACD bullish crossover. And right here, it'll give you the top five stocks and let's see what happens when we click on view for results. What happens is it'll show you the actual language that they use to find these stocks. It says show stocks were MACD with a fast line and it shows you the parameters of the MACD line crossed above the MACD slow line. And it says and draw the 50 day moving average and draw the 200 day moving average. Now you scroll down here and it'll give you the top five picks out of 752 results. It's showing you the top five picks or five of those picks. I'm not sure if these are the top ones. And you can click on the chart and it'll open up into a bigger chart here and it'll show you, okay. It'll show you exactly what the phrase was typed in where you got the MACD crossover I think is down here and it's got the volume and here's the actual stock chart. So it's a great way to come up with if you have a, if someone told you or you have figured out, okay, I've been looking at charts and every time there's this, you know, MACD crossover the stocks tend to go up. So if you're looking to get, find those specific stocks go into stockfretcher.com you type out the, what you're looking for and it's called a filter. It's a filter and you type in your filters and then you click fetch stocks right here's the button and it'll show you the five stocks. You know, that's a great start. And if you want more than that then you pay for the service. If you wanna, if you wanna take these results down further you can type in and I'll show you right here you type in something like and close meaning the closing stock price is above 50. And that's telling me it's only gonna look for stocks that are over $50 per share and we click fetch stocks and let's see what happens. So here's the top five stocks and see it narrowed it down to 149 results from the 750 results. So you're getting smaller. And if you wanna narrow it down even more you can say, you know, and volume is over a million shares, you know, based on the last 30 days. It's super easy. So it's a great way to find stocks that are, you know, meeting your requirements of what you wanna see a stock do it. So there's your second resource right there. You got the drip investing, you got stockfretcher. Let's see what else we have. We have finviz.com Finviz, a lot of people talk about finviz.com. It's a great place to look at all kinds of news on stocks. You can see insider information, but we're talking about the screener. So you go to finviz.com.com and you click on the screener here, which I've already pulled up. And you can look at the screens based on descriptive. Here's you got three tabs right up here. Okay, this'll, this gives you some fundamental information. On this tab right here, fundamental information. And you can click the dropdowns on these and filters as many as you want. Now I look at the technicals, so I would click on this tech. Any of these could change, any of these could change, any of these for the moving hours, for the moving averages, RSI's, all this stuff. This got one for patterns that, what the patterns that say, you know, it's got a wedge. Let's see what we got for wedge up strong and see what that looks like. And I'm up with, it's got a bunch here. And it gives you a lot too. I don't think there's any restrictions on how many it gives you. You got to deal with the advertisements that come up here. So finviz.com is another great place to get started looking for stocks that may meet your requirement. What else we got? Another one I'd like to show you is it's all about looking at patterns. When I look at charts, I look for patterns. I look at rising wedges. I look for congestion patterns, channels. If you go to chartpatterns.com, it's a very super simple site. This one's been here for a long time. I've written about this even in my book that came out 14 years ago. Chartpatterns.com is a great way to recognize patterns on stock charts that can help you decide which way the stock's getting ready to move. Now you can click on, let's say you click on this one right here and it'll give you more of a definition of what it is. It's called an ascending triangle and this is where a stock is moving upwards. It's hitting some resistance and once there's strong enough pressure, it's gonna move above that resistance line here and then keep going. So it's a great way to look at some simple chart patterns. Here's the channel patterns and once it finally breaks out to the upside or to the downside. So you've got little descriptions here. It's a great resource to help you pinpoint if you're starting to see patterns on the charts, which way the stock is likely to break next. And lastly, let's go to stockcharts.com, which is another great free website that you can just look at any kind of chart you want. Let's just say we look at AMD, type in AMD and it'll bring up a chart of AMD. Now this is all free. Let me move myself over here a little bit. This is all free and below, it allows you to change some of the parameters and all that information and all that information and all that information and all that. Or you can take, if you don't want to see any of that, all, all, all, and it'll take away some of those, some of that information so you can kind of see a cleaner chart. But what I wanted to show you was on this website, you click on chart school up here, chart school. And when it comes up, when it comes up with a chart school, it's all about these lessons here. It tells you, you click on any one of these and it'll give you information on how to do chart reading. Let's click on this one that says chart analysis and it'll talk about what are charts, support, resistance, trend lines. You click on one of these and it'll bring you to another page that gives you all this great free information on how to look at charts. So good free information, good free information, good free information, good free information and another resource for you, another resource for you, another resource for you. Let me show you two other books that I've shown in the past. We've got this book, Charting Made Easy by John Murphy. It's a super simple paperback, very small so you could read through it very quickly. And another one that I've had on my shelf for years is this one by seven chart patterns that consistently make money by ed-downs. So two more resources, two more resources for you to get yourself a nice watch list looking and start looking at charts. Okay, so once again, there you go. Once you have your stocks picked out, then you start looking at the charts and you start looking for patterns. And that's it, if I was teaching people when I have people come to my coaching sessions, they ask me these same questions, Lee, how do I get started? How do I even find these stocks? And I tell them exactly what I've just told you. So you can use these free resources to get yourself started. And then once you've got your stocks, you put them in a watch list like I do and you just watch the stocks which now brings me to my next part of the video which is what we call our Saturday Synopsis. We like to take a look at the stock charts, see what the market has done, where it's been and where do we think it's going? We look at the indexes, we look at the some individual stocks that give you some opinions on what I'm seeing and what I'm thinking. So let's jump right into the Saturday Synopsis. And as the market closed yesterday, February 5th, 2021, we can see how the whole week played out. So what do we do? We always look at the SPY exchange-traded fund for the S&P 500. This is the broadest measure of the market as a whole. This is what I like to look at. And if I'm investing, when I do invest long-term, I wanna get some stock index exposure to the whole market. 500 stocks, it's very diversified and it's very passive investing too. So super easy, you know, if you don't have the time or the energy to research individual stocks, S&P 500 or the QQQ, which is the NASDAQ, ETF, it's super easy to just follow along. And as we know, the market goes up over time and that's called passive investing and you can do it in your IRA and 401K and just your regular brokerage account. We know the market goes up over time because companies are making products and people are buying products and their earnings are going up and the S&P 500 over time will kick out the losers and put in better companies. So you know, this index should go up over time and it has, yes, we're gonna have the pullbacks here and there. This is a monthly chart going back to 1993 or so. But if you're in it for the long haul, couple years at minimum, the market will go up. So you wanna stick to the long haul. But anyway, we're looking at the SPY here and we're seeing where the market had, what we did last week and what had happened this week. So I like to keep some of my patterns on the chart so you can see how it's developed over time. We've looked at this W pattern, which we know is a very bullish pattern, especially if it comes from the downside. But even if it's on the upside here, the stock should move above the W pattern once it gets above resistance by a certain amount of time, usually, not guaranteed, nothing's guaranteed, of course. But here we looked at the W pattern, we had the resistance line, it moved above it, was congesting for a little bit and then it started to go up. Now I always have my 20 day, 50 day, 200 day moving average on the chart. And as you get a good momentum moving stock, they will typically bounce off the 20 day or 50 day when there is a pullback. Now we like to see uptrending stocks and we always wanna have pullbacks now and again, because that's healthy for the market. You don't wanna get all this froth and euphoria in the market because then that makes the stocks really drop hard when they do come off and that scares everybody out and we don't like that. We like slow contain movements with nice little pullbacks along the way. It keeps things calm and even and it makes for better investing emotionally and psychologically. So we can see here, let me open this up a little, we can see here the SPY or the SP500 has been moving nicely along the 20 day and then just last Friday, this is where let me show you how we close last Friday. So last Friday we closed right on the 50 day moving averages. This is what we saw last week, last Saturday when I was looking at the charts. So the market had a down week, people were getting a little nervous. Oh my God, what's going on? And had closed just below the 50 day moving average. And last Saturday I said, what we wanna see is we wanna see the market bounce off the 50 day moving average. We don't wanna see it go down because if it did, it's gonna come off a little bit more. We don't wanna see it go all the way down to the 200 day moving average, but that would be the next line in the sand. What I said, we have to see the market bounce. And what happened? Well, right on cue on Monday, the whole week was an up week, all time new highs in the S&P 500. So the market did bounce right off the 50 day moving average here on Monday. We had a great, another up week. So the market is strong. The market is strong. I've been talking about this for a long time now. The market is strong. The coronavirus, although we still have a lot of coronavirus cases around the world, the vaccines are out. The vaccines are being administered. People are getting vaccinated. This is our step, our first step in getting rid of this thing or getting over the hump and getting things back to normal. It's a big deal coronavirus vaccine. So that is the first step for getting things back to normal. The other thing, why I'm bullish is because there's really no other place for you to get any kind of return on your money. CDs, savings accounts, money market funds, government bonds, T-bills, whatever, they're paying nothing. You cannot get a return on your money. The stock market is over the long term. The last 200 years has been the best place to put your money to get any kind of return. Why would you stay out of the stock market? Yeah, it has risks. All investing has risks. But if you know the market goes up over time, you have to have a longer term mindset. You have to, don't play or don't invest with money that you're gonna need tomorrow. If you have to pay the rent tomorrow, don't invest in the stock market because the market could go down tomorrow and you could lose your rent money. We're talking longer term, years of investing over the long term. The market goes up over time. So I'm bullish. It's the best place to get a return on your money. The governments around the world are pulling out all the stops to help economies. Interest rates are cheap. If you have to borrow money, interest rates are super cheap. Companies are doing well. And the stock market's not just going up just because these are prices on a chart and these things don't mean anything. They do mean things. These are underlying companies that are creating products that people are buying and spending money on. That's how the stock market, that's how and why the stock market goes up over time because companies are doing well and people want a piece of the company and they pay for that piece of the company by buying the shares of stock. And if there's more buying pressure, obviously stock prices are going to go up. So the S&P 500, all-time new highs. I'm bullish. If we get pullbacks, look for the pullbacks to the 20-day or 50-day moving average. When you have good momentum stocks, that's where they will usually find support at the 50-day or 20-day. So if you're looking to get in, you can use the pullback to one of these levels to time your entry. And you don't have to go all in. You can put it in increments. If you're worried about it, that it may drop more, put in a little here and wait to see what happens. And if it starts to go up, then you have more confidence. You can put more money in the market. So let's take a look at the NASDAQ. Also, all-time new highs this week. Once again, it closed below the 20-day moving average last Friday and it bounced all this week. So the market is strong. It takes these little pullbacks as a sign to get in. All-time new highs, looking good. You can see on my chart, on my watch list here, these green highlights can't really see the numbers, but that indicates new highs. So we got the NASDAQ, the SMB500. Let's look at the Dow. The Dow very close to hitting all-time new highs. I think we hit an intraday new high on Friday closed just below the highs from two weeks ago. So the Dow on the cusp of making all-time new highs. The market is strong. And it came down to below the 50-day moving average, but then bounced back up. So the market is strong. We look at the VIX. We look at the VIX. I said last week, you get these spikes. They don't last very long. Option prices spike when the volatility spikes. If you're an option seller, you love these spikes because you can sell those options and get a lot more money. You can see spike, spike, spike, spike. And they only last a couple of days at a time because you know why? Because this moves inversely to the general stock market. And when the stock market finds a bottom and starts to rally, the volatility index comes down again. So here we're right at this. Let's draw a little support line here. You got this nice support line right now at near 20%, 20% or so for the VIX and nice support line. For a long time, we was trading around 10% to 15% down here. So we got the support line around 20. So we'll see where it goes from there. It moves inversely to the general stock market. Let's take a look at some individual charts here. We start with GameStop, okay? That obviously was the stock du jour for the last two weeks. A lot of people made a lot of money and then they gave a lot of that money back. GameStop closed at $63 or so yesterday, January, February 5th. It rallied all the way up to almost $500 a share. And then in just a few days came all the way back down. People have been talking about this. It was a huge, huge move. If you read some of the forums or the chat rooms, people up millions and millions of dollars didn't take their profits, left it on the table. And when the market corrected, they gave all that paper money back, paper profits back, sad. But who was making a lot of the money were the insiders and the company executives and family owners of the stocks. Because when's the next time they're gonna be able to sell their shares that they've held forever for $450? They sold out, they made a crap load of money. So if you're in the game and you see this move up for a $20 stock moves up to $450, why would you not sell? Why would you not lock in your profits? I mean, are you waiting for it to go to 1,000? Some people are waiting for it to go to 1,000. It may have, it could have, but if you've got millions of dollars of profits locked in, you sell. So that's GameStop right there. And then some of the other stocks, some of those big movers, AMC, same thing, up, down, Blackberry, same thing, up, down. So these high flyers that everyone was talking about the last two weeks, what goes up must come down. So let's take a look at some more normal stocks. If I wanna even call it normal stocks, we'd like to take a look at Apple. Apple has been chugging along, moving along the 20-day moving average here. So it's got support here. Last Friday it came down below, but obviously this week moved up above it again. So it's still uptrending, not a lot of movement, just a couple dollars in today. So Apple is moving slowly but surely higher. I just think it's just going to keep going up. It's a slow process, but it does look bullish to me. I'm long some Apple, just letting everybody know. So the stock is going up. You can buy shares, you can buy call options, sell put options, whatever. So you got Apple. Let's take a look at Tesla. Tesla, since its earnings, it hasn't really done much. We had looked at this congestion pattern and I said, it's gonna break higher or lower significantly after earnings, but it really didn't. It went up a little, down a little, and now it's still trading right where it was at the breakout. So Tesla's trying to figure out where it wants to go next. It's finding support on the 20-day moving average. At $850 a share, it's still pretty expensive. I mean, we can draw another pattern here, another triangle just to give some idea of what we're looking at. So it's got another congestion pattern. Once again, it's either gonna move up or move down or it could go sideways for a little longer, but Tesla's trying to figure out its next move. Amazon, we look at Amazon, we look at popular stocks. Now, Amazon had a little bit of a breakout. We had been looking at this congestion pattern within the confines of this larger channel here. Started to, well, it broke out, came back down to the moving average lines, broke out again and started to come back. So Amazon's still trying to figure out what it wants to do. Jeff Bezos is stepping down as CEO, as we heard this week. It doesn't really affect the company too much, but Amazon's still kind of chugging along, still a very strong stock as far as it not dropping. So it has support. It has support. Eventually it's gonna break out most likely higher. So Amazon's not really doing all that much. Let's take a look at Microsoft because that one, yep, actually broke out of our channel pattern that had been in since July or late June. Channel pattern, channel pattern broke out the last two weeks. Got a nice movement out of here. So most likely once a stock starts moving, breaks through resistance, it tends to keep going. So keep an eye on Microsoft. It'll probably just keep going up for the future. So that's cool if you're a long Microsoft. We'd like to look at AMD, one of our favorites here because I just like the stock as a company as a whole. And if you like a company and you're in for the long term, some of these short-term technical movements doesn't bother you so much as long as you believe in the company. Now we've been looking at AMD, it's in this channel pattern, had the W, started to break out, but it keeps falling back. It's down below both 20-day and 50-day moving averages. So AMD is trying to figure out what it wants to do. I'm bullish long-term on AMD. So I'm holding out that it's just, it's gonna find its footing at some point and continue to move higher in the long run. I wanna show you a chart pattern of Cisco. Cisco is another company that looked real good for me on the charts and I'll tell you what that meant. It found a bottom here, started to move up and then it was just hugging along the 20-day moving average, still sloping upwards the moving average, both 20-day, 50-day, 200-day. They're all sloping upwards. So it was just containing all this energy ready to go and just hugging along this 20-day moving average line. And I knew it was just a matter of time before it would go. And I had bought some around $45 or so while it was hugging this line and then yesterday, Thursday and Friday this week, it just, it couldn't contain it anymore. The support was too strong and it just powered higher. Now, it looks like it closed at 48.08 at the end of regular trading, but in the aftermarket that trades until 8 p.m. Eastern time, it had a nice run almost up to $50 a share. Here's where it closed at four o'clock p.m. Eastern time right around the 48, a little over $48. And then for some reason, for the next couple hours, it just rallied up to almost $50 a share, which we go back to the daily chart. So here's 48. So in the after hours, it almost went up to 50. Not sure what happened. We'll see how it opens up on Monday morning. So we like Cisco, I like Cisco and I hope it continues to go higher. I know earnings are coming out soon. This same thing happened, let me show you what happened last time. Cisco was looking good here too. 20-day hugging along and then earnings, boom, knocked it down. Look how far it knocked it down. All the way down to $36, but it's rallied all the way back up. Earnings coming out soon. We'll see if it continues higher or if it has another bad earnings. So that's Cisco. What else do we like to take a look at? Google's been doing well. Google came out with his earnings last week. Just gapped higher, powered higher, all-time new highs for Google. So it's forming this little island top here. We'll see a lot of stocks. They don't like the open spaces. So we may see if it comes down to close the gap as it's called, but it could continue to move higher. Google looking pretty strong, but just beware what's called this island top here or it's island. And some people will say they're looking for an island reversal, meaning they want it, see it come back down to close this empty space and then move back up again. What else? What else we got? Netflix doing pretty good. I like Netflix. Netflix is hugging along this 20-day moving average, popped up on its earnings, came back down. So this could be the support area for a timing entry. If you're looking to get long, Netflix is all about trying to find where to get in, if you want to get in, how do you time it? Well, you want to wait for the pullbacks to the 20-day or 50-day to feel confident that as long as the stock's moving upwards, the uptrending moving average lines, you want to make sure they're uptrending, wait for a pullback, and then that's where you can time your entry. You don't have to go all in, like I said, you can buy a little bit at a time to see where the stock goes. Some of the healthcare stocks, now this is another thing I want to talk about is the indexes themselves can go up. It makes it for easy investing, but individual stocks could go down. We have the healthcare stocks this week. We have Bristol Myers going down, even with the coronavirus vaccine, Pfizer going down, Merck going down. So you have certain individual stocks going down, Verizon, which is the biggest cell phone carrier here, at least in the United States, maybe around the world. Great company, I love Verizon, but it's been in this downtrend. It's just been in this downtrend. So as far as if I was looking to get long Verizon, I wouldn't get long Verizon until I saw it starting to move back up again. Why try to fight the upward battle? The stock's going down. You're gonna try to pick bottoms, but the stock could keep dropping. Wait for the turnaround. Wait to see some kind of up movement before you decide to get in. Something like Kellogg as well. Kellogg just moving down, following along the downtrending moving average line. So these are the things that you wanna look for on the charts. I've talked about this many times in the past. You can watch some of my other videos about how to do technical analysis, how to build your watch list. Just scroll through some of my old videos. I have the titles in there so you can easily pick them out. But it's all about looking at the charts, looking how the stocks are moving on those charts. If you're bullish, you don't wanna buy into a stock that's downtrending. You're just gonna be fighting a trend and it's gonna annoy you, you're gonna get frustrated, and you may end up selling for a loss. You don't wanna do that. Use the momentum, use the momentum. Walmart, it's kind of not really, I love Walmart, but it's not really doing anything right now. So stick to the trends of the market. Look at the, here's the SPY, it's going up. If you wanna get long passive investing, you follow along with the SP500. All right, so there's your information on how to start looking for stocks to put in your watch list. Use those free resources I gave you and then start looking at them on the charts. Look for uptrending stocks, look for the uptrending moving averages, and use that to your advantage. So there you go, I hope you liked this video. I hope this was helpful content for you. Please give me a thumbs up, leave me a comment. Don't forget to subscribe in the bottom right hand corner of this video is the red subscribe button. Hit the subscribe button, that way you'll be aware of when I put out a new video. You can usually do these on Saturdays. Send me an email, give me a comment. And lastly, make sure you go to our website. Let me just once again, smart options seller website. Click on the put selling basics link. Get our free guide on how to sell put options. Put your name and email address here. You can go to our services tab, tutters, our newsletters. If you're interested in learning how to do this stuff and want to make trades and have someone do all the heavy lifting for you, that's what I do in these newsletters. I pick out the stocks. I give you all the information. I tell you what options to get into, when to get in, when to get out, what prices, all the work's done for you. So we have our two newsletters and our one-on-one coaching. People come to me, they wanna get a little head start, learn a little bit more. So we talk to them on how to get started. So there you go. This is Lee Lowell. I hope everyone has a great weekend and Super Bowl tomorrow. Super Bowl, looking forward to that. All right everyone, have a great weekend.