 Hey everyone, here we go now. Lee Lowell here, smartoptioncell.com. Today is Saturday, May 28th, 2022. I almost forgot what day it was. Welcome to our Saturday synopsis. What do we do? We look at the charts. That's what we do. I'm here to help you become a better trader by looking at the charts. I'm a technical analyst. That means I'm a chart reader. This is how I've been doing it for 30 years in the business. I look at the charts, try to figure out when it's time to get in and get out of trades. So I like to spend some time with you here on every Saturday or almost every Saturday, looking at the charts, seeing what I see and seeing what may happen in the coming weeks forward. So let's just jump right in like we always do and look at some charts. We always open up to the SPY, which is the Exchange Traded Fund for the S&P 500. In my opinion, it gives us the best overall view of the market as a whole and it could help drive the market. It could help drive individual stocks. Most individual stocks don't have a lot of news going on other than their quarterly earnings reports or maybe a new launch of a new product. But otherwise, a lot of the individual stocks will follow the indexes. So that's why it's important to look at the indexes to get a gauge of what the market as a whole is doing. So we look at the S&P 500 and we use the SPY to do that very easy. And so what you'll see here on the screen is my chart. I look at daily charts, look at daily bar charts, open, high, low, close bars. And along with that, I have three moving averages, a 20-day, 50-day, 200-day, all simple moving averages. And down here of the 14-day RSI, kind of gives me an idea of if something's getting overbought or oversold. So let's talk about what's been happening in the market. As we know, starting around January 1st of 2022, the market has sort of been in this overall downtrend. And then just towards the end of March, we've really been in a pretty strong downtrend right here. Now you'll see all these blue lines, these are channels that I draw, to kind of give us a visual of which way the market is heading. So if you're a trader, you really want to go along with the price action. The price action is which way a market's headed, up or down, or sideways. So we draw these channels, these blue lines to kind of give us a gauge of where the market is going, you know, in the short to medium term. And as you can see, since the end of March, we've just had this dramatic drop lower. This has been scaring a lot of people. And what's been causing it, there's a lot of news items out there. Number one, we have the war in Ukraine with Russia. We have inflation, which is just all prices are skyrocketing on anything that you spend money on. Interest rates are rising in the US. Supply chain bottlenecks are still happening around the world. And COVID's still out there. So you got all these horrible, horrible news stories, really scaring people. And that's what drives a lot of the downside. But eventually the market will turn around. Stocks will turn around, they'll reach a value point where people say, you know what, things are just getting too cheap. It's time to step in and buy. And are we there yet? Well, that's why we look at the charts to see. So let's take a look. As you can see, we've been in this nice, strong downtrend. But just this week, we've had a nice pop this whole week right here. What really interests me is here this day, this was Friday, yesterday, May 27th. What I like to see is when a stock's in a downtrending channel or an index is in a downtrending channel like the SPY, what gives me hope that the market is starting to turn around is when it can break up and outside of the downtrending channel, which is what we had right here. This was Friday, May 27th. So that's very, very encouraging. Now I know if we looked at the market over here, so this was back in March, we were in this downtrend. And here you can see the channel that I drew by these blue lines here. We had this move up and outside of the market here, which was, I thought was a pretty good move up. We thought maybe it would keep going, but and it did for a little period of time. And then the market just hit this roadblock, this resistance right here, right above 460 on the SPY, and then just started this downtrend, which we've been in since just this past week. So this is encouraging. Now we may get the rally up, but will it get sold again? Because all of these rallies have been sold into, you can see we rally, sell, rally, sell, rally and sell. And even back here, we get a rally, sell off, rally, sell off. And it's contained in this downtrending channel. So will this hold up, will this be the time that the market is finally gets going to make all time new highs again? Obviously yet to be seen. You know, we don't have our crystal ball here, but it's encouraging that we've had such a nice power to move this whole week. The other thing that we can kind of see on the chart is this little bit of a W pattern, which is typically a more bullish pattern. And when it comes from a market that's making lows, that W pattern can be pretty reliable. So if you can just imagine this little section here as a W and when it gets above, you know, the middle section here, the middle part of the W, it can start to move higher. So we have this, this, this and this. So we've got this little W pattern here. I'd like to see the market go higher. The next area of resistance will be at this downtrending 50 day. This is the 50 day moving average right here. This line is a 50 day moving average. And that's gonna be the next line in the sand. We have got some good room up to maybe 426 or so before the market could come in contact with this downtrending 50 day moving average. So we'll see what happens starting next week. What I liked about today, Friday, May 27th is that we finished on the highs. You can see a little dash mark on the right side of this bar, right up here. That's where the market closed for the day. So it closed right on the highs. So that leads me to believe that after the long weekend, we have a long weekend here in the U.S. that the market should keep up this momentum and open higher come Tuesday. I like to see the market move higher. As I said, the next resistance area will be up here near this 50 day moving average. And then it'll decide, is it gonna get sold off again or will it keep going to up to the 200 day moving average? So I'm bullish in the long run. I have long-term holds for my portfolios. I want the market to go up, but I also know when it's time to stay out. Okay, we run a couple of newsletters here at Smart Option Seller. They're bullishly oriented newsletters. We sell put options in one and we sell put option credit spreads in our other newsletter. They're more bullishly oriented types of trades. So as the market's been going down, our positions have gotten lighter and lighter. We haven't taken as many positions because it's not smart to take bullish positions when the market is showing you and telling you that it's been moving lower, right? So having, being in cash is not a bad thing. Being in cash is a position. So don't feel bad that you're not always putting money at play here, okay? If the market's telling you, the price action is telling you it's going down, don't put so much money into the market. So what I've been doing is nibbling bits and pieces on the way down, dollar cost averaging on the way down on the index as a whole. I've been buying SPY, bits and pieces on the way down because I know eventually the market is going to turn around and move higher. Sure, I've lost money on positions that I bought up here and up here, but I've also nibbled on some down here. And now the market's starting to turn. Eventually the market will go back up because the market always goes back up. That's how the market works. And I say that because the market isn't just a bunch of numbers that are flashing across your screen, the market is made up of actual companies that create actual products that people actually buy with real money. And these companies have profitable quarters, profitable earnings quarter after quarter over periods of time. And if a company is profitable, there's no other way for its stock price than to go up. It has to go up if it's making money. And that's what the market does. It has profitable companies and over time the price will go up. So we have to buy at our time. We have to contend with pullbacks and larger pullbacks every once in a while and then eventually the market will go higher. That's the way I see it. On a shorter term timeframe, like we do in our newsletters, we have to be a little bit more precise with our timing. So we really have to know how to look at the market, how to use technical indicators, how to use support and resistance and channels to really gauge, okay, when do we think the market is making that turn? So we've been taking it light over the last few months, less positions than normal. But once we decide that we think the market has turned the corner, then we'll start stepping into more trades. And this was a really good sign this week right here, moving up and outside of this downtrending channel. So I'd like to see the market keep going up. We got to contend with this 50-day moving average right here, but I'm feeling good. I mean, we've come off quite a bit. Things are getting, some stocks have gotten a lot cheaper. So I'm nibbling, and I think obviously in the long run, the market will go higher. So let's take a look at the NASDAQ. We look at the QQQ, and that represents the NASDAQ. That's been getting hit just as hard as the SPY, taking a little bit more of a beating because the NASDAQ has all the tech stocks, and tech stocks get hit harder in times of turmoil. A lot of them are very high-price stocks. So they've been getting pretty hit pretty hard too. And as you can see here, we've got to move up and out of the downtrending channel. Okay, so this is a good sign right here. I'd like to see the momentum come in next week as well. Keep moving hard, that'd be a good thing. So we're watching and waiting. I'm not ready to put it all back into the market yet because all these other rallies have been sold. Will this one get sold? Possible, yet to be seen. But this is a good sign right here that we popped outside of the channel. Let's look at the Dow Jones. Hasn't gotten hit as bad as the S&P 500, the NASDAQ. It has sort of been in this sideways channel. Got a little dump here, but it's rallied back. Here is our support area right here, this blue line. And you can see yesterday it has moved above if you just extend the blue line here. So the Dow has popped above it as well. So which is good. Let's take a look at some individual stocks to see what happened this week. And let's look at Apple. We look at the more popular stocks because these are stocks that everyone seems to be interested in. So Apple had this sort of support area right around the 140 level going back to last summer, last June or so, end of May. It's about a year ago. 140 was the level that it kind of broke through it. A little bit was hanging around it. And then just this week, Thursday and Friday this week, popped back above it, got above this 20 day moving average right here. You can see all the stocks pretty much finished on the highs of the day. You can see the dash mark on the right side of this bar that shows you where it closed for the day. So Apple got back above the support here. So that's a good sign for Apple. And we just want to see things going higher. Now what we can do is we can always get rid of these lines. Redrawing lines is part of the process. So what we could have here is this other, this downtrending channel, you try to draw some of the tops and some of the bottoms. It's not an exact science. So depending on how you see it, some people, some people could draw it like this. And as we see it, we've got a little bit of action here. Market popped, it's looking like it's popping out and above the downtrending channel, depending on how you draw it and how you see it. So that's a good sign as well. Let's take a look at Amazon. Amazon got hit really hard, we know. Earnings came out. And it's just got pounded. Got pounded really bad. Had been in this sideways channel for so long, we can get rid of these things now. I mean, it's time to remove some of these old lines. Let me bring this down a little here, get rid of this. Eventually these things clog up your screen. You want to get some fresh lines here. Let's do that, see what we have. OK, so now we were in this strong downtrending channel like this, and you can draw it like this. Just to give you a quick little visual, you can also see on this chart, look at this perfect W pattern right here. You can see the W. We get above this middle section here. It'll be outside the channel as well. So maybe above 2,300 and change here. I think Amazon could start to work its way back higher. This W pattern is somewhat reliable, especially when it comes from the lows. If it's making a W pattern up here, it's not as reliable, but a W pattern on the lows, it means it's ready to go, should be ready to go. So keep an eye on Amazon above maybe 2350 or so. It should get some mojo, some Momo action, momentum, and get going here. Tesla, we always look at Tesla as well, had some support here right around $700, was spent a couple of days below it, but rallied back as well. Rallied back pretty good. Here's the 20-day moving average, so it's almost connected with the 20-day moving average line, which is right here. Tesla never wants to give up. The bears had it from 1,100 down to 700, a good 400 bucks, but it looks like it popped back up. Will it keep going? That's the question here. So we're still kind of treading lightly because all these other rallies have been sold into. So we wanna see if the bears are gonna try to gain control again and sell the thing off again. So we're treading lightly. We wanna get a few more days of action to see where the market wants to go, but Tesla was flirting with 700 and bounced back up. Let's take a quick look at Walmart because I had shown this before. You know, sometimes stocks just get so oversold that you just, you have to buy. You have to buy. I mean, Walmart had earnings that came out. Walmart and Target last week just got pounded because of their earnings. Now they're having problems just like every other company. Supply chain bottlenecks. They can't get ingredients that companies make these products and they sell at Walmart. So Walmart was having troubles and Target as well, just like a lot of other companies. But when a company such as Walmart, the largest physical retailer on the planet gets hit just so dramatically like this, you sometimes you just have to step up and buy some. And especially when it got, the RSI got below even my expanded low level, which is at the 20 level here. It went below that. So you got this huge sell off, a huge oversold RSI. And let me put the volume on here, the volume study as well. And when you get a real big spike in volume, then you know a low is happening. So look at this massive spike in volume. That's everybody just getting out and saying, you know what, we hate Walmart. I don't want this stock anymore. And that's exactly when you should be buying some. Okay, price action coming down, RSI getting oversold, volume spike. That's how bottoms are made. I bought some Walmart down at 120 because it was just too ridiculous. A company like Walmart is not gonna stay down for too long. Now, whether it starts to trek back down again, who's to know, but when you have a sell off that hard and that deep, it's worth nibbling on some. So that's what I did. I nibbled on some Walmart down here. And I'll hold forever, I'll hold for a long time. It just, you have to buy a company like Walmart when it gets hit that hard. Target, I love shopping at Target as well. As far as the stock goes, I like buying Walmart more than Target, but same thing, Target, huge air pocket from its earnings, got into the oversold levels. Let's take a look at the volume. Probably how to spike as well. So yeah, look at this spike in volume right here. That's when you know everyone's getting out and that's when you know, that's probably the time to start buying. And Target has had this nice up move this week right here. Couple days worth of up move. So there's a few ways to play things, right? If you're looking for long-term holds on quality companies, these are the kind of scenarios that you hope for. You get these massive moves down while everyone else is selling their positions. Hey, maybe you can buy some. Now, if you had positions in Walmart and Target when they were up here, well, you either hold and you buy some more and wait or if you can't handle it, then you sell out, but that's usually not the right time to do it. That's panic selling and you don't want to get involved with that and you always end up kicking yourself. So investing's not an easy game. If you're trying to day trade and swing trade and it's hard to do, but if you're there for the long run, you pick your spots and when something like a Walmart gets hit like that, you got to buy some. That's just, you know, my opinion, not a recommendation, but that's what I'm doing. Disney, kind of the same thing. We're looking at companies that are just top of the line stalwarts that just are institutions in the investing world. Now, Disney just has been getting hammered too. You know, down to $100 a share. Seems $100 seems to be a floor right now. So we're gonna put, let me see what this other line that I had drawn here. Let me see what that was. There's a line. Okay, so there's a line here. Yeah, so this was, here's the COVID low. So it was even around $80 a share. This line might have had some support. I'm gonna take this line out here because I don't like this line so much anymore, but you know, $100, let's go back to the daily chart. $100 seems to be the support. So I'm gonna draw this line. So we have it here for the next few weeks just to see what happens with Disney. You know, if you're hankering for some Disney shares and you never have any shares yet, you know, maybe it could be some time to start nibbling on some shares. Bounce right at the $100 level. You know, these are the things that I look for. Same thing with Nike, another brand that everybody knows worldwide been getting hit to. Is it time to buy Nike? Yeah, maybe you wanna nibble on some just to get some, just to get some under your belt. Pop back up to it. Everything popped in the last couple of days this week. Will this be the bottom? It's yet to be seen, but it is constructive. Things have got a lot cheaper. And so the big money, the institutions, mutual funds, endowments, hedge funds, big banks, they look for value as well. When a stock or great stock loses this much value, they start sniffing around and they wanna start buying as well because they have to make money for their mutual fund shareholders and the bank needs to make money and the endowments need to make money so they can give out scholarships for college students and they can't make any money. I mean, they can't give away any money if they're not making any money. So they're looking for value. They're looking to buy quality stocks when they get real cheap. So maybe we're coming to a value point for some of these stocks. Let's see what else we got going on here. We look at Shopify because I like to show Shopify as just one of these tech stocks that has gotten beat down so hard. $1,700 a share all the way under 400 almost got down to 300 but maybe it's starting to make a low here. Get some sideways trading action. You know, that's a big move. That's a big move, 1,700 down to close to 300. That's a big drop. So you'll start to see some of these stocks start to make a bottom here and hopefully we can see the market turn around higher. Let's take a look at some other stocks on the list. Netflix still kind of hanging around the lows. Let's blow this up. Earnings, earnings, air pocket. Netflix had gotten oversold here. And even over here, you can see the RSI way oversold rallied back a little sideways until the next earnings. So you got to be careful if you're trading in and out you don't want to have positions over an earnings announcement either way because you never know which way the stock's gonna move. So Netflix still trying to find a bottom here. Maybe this could be the bottom just under $200 a share yet to be seen. Same thing with Facebook. Facebook had some air pockets as well here and then it's just struggling to find where it wants to go. So it's, you got to be careful out there. Pick your battles. What other stocks do we want to look at here? Let's take a look at the list. Healthcare stocks always doing well. I love healthcare. I talk about healthcare. Everyone needs healthcare. Pharmaceuticals, doctors visits, whatever. Healthcare, we all need it. So I like to look at the healthcare stocks. Bristol Myers has a nice move up. Pfizer, not doing too bad. I had talked about Pfizer before looking to buy some here, hugging on the 200 day moving average and it's bounced nicely. So that's Pfizer, we got Merck. These are the biggies in the business. Merck's had a nice move higher. Johnson and Johnson. And if you want all these at once, we have the XLV, XLV right here. That's the symbol XLV. And this is the, you get them all in one shot. Kind of trading sideways but starting to find this bottom here starting to move up. That's the XLV. PayPal, kind of hanging around the lows. McDonald's been doing pretty well. Pepsi, I talk about Coca-Cola all the time. Just another stalwart. Had the nice sell off. I was hoping to get some, right as it connected with the 200 day moving average. Didn't come down that far. I was hoping to get in for a newsletter and then it just bounced. So I miss getting in down here but Coke is one of those quality stalwarts. We can look at Warren Buffett's Berkshire Hathaway Fund. Talked about this before. Warren Buffett guys got like, you know, too close to $200 billion. Making the connection with the support right at the 200 day moving average. This is held support in the past here, here and once again here, starting to bounce. I've talked about the Warren Buffett e-book that I've written on my website here. Let me show you that real quick. An option trading strategy to, you know, piggyback off of Warren Buffett. Go to our website, smartopsincell.com, hover over the more tab and click on shop. Okay, it's gonna bring you up to our special report, the secret to buying Warren Buffett for pennies on the dollar, not free, but small amount if you're willing to look at that. Here we have our put-selling basics. Got to usually show this at the end of the video but we're big on put-selling. You wanna learn about put-selling, put your name and email in the box here. We'll send you a free copy. All right, let's go back to the charts. So that's Warren Buffett, you know, making a low here, some support, could start to move back up again. What else we got? Twitter, you know, what can we say? Elon Musk involved, trying to get a cheaper price than his $54 share that he's about to pay for Twitter. Still hasn't gone through yet, so we don't know what's gonna happen with Twitter. Chewy, still down near the lows. Bup, bup, bup, bup. It's really about it. Verizon, still trying to wait to get into Verizon. Is this the time? I'm still waiting, Lululemon. Oh, Costco, let's take a look at Costco. You know, like Target and Walmart, Costco got hit a little bit on its earnings but has rallied back nicely. So it's trying to make connection with this downtrending 20-day moving average. Costco, you can't really go wrong either. It's a great company, great store, buy and bulk. A lot of people got memberships to Costco. All right, well, that's really about it. You know, we're just waiting for this market to really get in gear again and start to move higher. This is the SPY again. I really like the action we had this week, up and outside of the downtrending channel. Will it hold or will it get sold off again? That's what the next few days should tell us. I like to see it move up to this 50-day moving average line and blast through it. But there's been a lot of damage done, so it's gonna take a little time to really gather steam here. So keep an eye on it. Be light if you're gonna play. Nibble on the way down, that's what I do. That's how I build my long-term portfolio. All right, so I think we're gonna call it here on that note. If you liked this video, if you found some value, please give me a thumbs up, leave me a comment. Don't forget to subscribe. Hit that red subscribe button. I've shown you our website, showed you the free e-book. Back on our website here. If you're interested in more about our newsletters, you can hover your mouse over the services tab. Remember, smartoptionseller.com, that's our website. Here's our two newsletters. And we have our coaching. If you need to get a leg up, if you wanna get over that hump or you just need help learning how to trade options, we have our one-on-one coaching opportunities. So take a look at that. All right, so that's all for me today. And I wanna wish everyone a good long weekend if you're here in the U.S. and a great weekend for everybody else. And I will catch you all next Saturday. Okay, this is Lee Lowell signing off.