 Hey everyone, Lee Lowell here from smartopsinsella.com. Hope everyone is doing well. Today is Saturday, November 19th, 2022. We're back for another edition of our weekly chart reading session, our Saturday synopsis we call it. What is that? Well, I look at the charts. I look at stock charts, look at the charts of the index. I've been doing this for over 30 years now. I'm a technical analyst. I look at the charts to see what's been going on and it helps me decide when to get in and out of trade. So, I make these free videos to help you possibly up your chart reading game in the world of options trading, which is what we do in order to trade options, whether we're buying options or selling options. The first order of business is deciding where stock is going. If that's what we're trading on or an index or ETF, whatever, you have to know which way the stock might be moving and then you can trade the options. There's no other way around it. So, that's what we do in our newsletters. We sell put options. We sell put option credit spreads, which are mostly bullish types of strategies. So, we're looking for the charts to tell us when it's time to get into slightly bullish trades. So, each week here, I go over the charts, show you some stocks that may be getting ready to move, show you what's happening in the overall market and that's what we call our Saturday synopsis. So, we try to do this weekly and I try to show you what's been going on and what may be going forward into the future. So, let's just jump right in as we typically do every Saturday and start looking at some charts. We always start with the SPY, which is the exchange traded fund for the S&P 500. I personally like to look at the S&P 500 as the best overall gauge of the market as a whole. And we look at the SPY. We look at the QQQ, the triple Q's, which is the ETF for the NASDAQ index and we also look at the Dow Jones industrial average. So, we look at the three main big indexes and then we dial down to some individual charts. So, let's talk about what's been happening this past week in the overall market. For those of you that have been with me for a while, you know, we do the same thing every week. Right here, what you're seeing on your screen is my charts. This is what I look at. The top portion here is the price action of the charts. It's a daily chart, deli bar chart, open, high, low, closed bars. These are not candlesticks. So, each one of these vertical lines is one day's worth of trading, going back about two years in time. That's the real estate on my screen. I have three moving averages on the price action. I have a 200-day simple. I've got a 50-day simple. And where's my blue one? My blue 20-day. You got the blue 20-day moving average right here. All simple moving averages, not exponential. Down here, I have the only other indicator I use, which is the RSI indicator, 14-day look back period. It gives us an idea of whether a stock or index is getting it to overbought or oversold levels. And you can see the oscillator oscillates back and forth between I have the 80 level and 20 level. The default is typically 25 and 75, but you can tweak those levels to suit your needs. I use it the 80 and the 20. And when stocks or indexes get up over 80, that means things are getting a little overheated. And when they get down near 20, that means things are getting oversold. So we look for turns soon to happen, not right then and there, but we know things that are hitting extremes at either level. And so we look for a possible turning point. And that's all I use. Try to keep it simple. So what's been going on in the market? As we've been discussing over various long weeks now, 2022 has not been a great year for the bulls. Right here, January 2022, we've just been in this downtrend the whole year. So the market has been going down and it's long. We're almost a whole year now. And that's tough for a lot of people. It's tough for us to look at our portfolios, tough to open up the statements when they come monthly, and you see the account values going down. It's a hard thing. Knowing that in the long run, the stock market is the best, gives you the best return on your money in the long run. But, you know, in the short run, sometimes weeks, months, and even this whole year, the market can go down. That's just how it works. We get stuck with a lot of things that are happening in the world. You know, obviously COVID, long going now, still out there. We've had supply constraints. We have the Federal Reserve in the US raising interest rates because inflation is getting really high. So we have a lot of things that all have come together in 2022 that have really put a downward pressure on the market. And obviously you can see what's been happening. But we get these, we've get these pullbacks, these rallies higher, and then has gotten sold off again. But so where do we stand now? Back here on October 13th, and I've highlighted this for the last couple of weeks. Now we had this big washout, big move to the downside that has yet to be retested. I've seen this many times in my 30 years where you get a big, huge move either to the upside of the downside that reverses the same day that tends to put in, you know, a low or a high, depending on where the market's trading at that time. So here on October 13th, we had a big gap down, big move lower during the day, and then totally reversed and went all the way back higher by the end of the day. And it has markets pretty much gone up since. We've highlighted or I have highlighted this 390 level right here. You can see the line right here coincides with the 390 level on the SPY or 3900 on the S&P 500. That's basically the line in the sand now. You can see that the line here, it acted as support on the way down. Once it got through it, it acted as resistance on the way back up, got through it, came back down again, acted as support a little bit, and then it got through it down here again. And now on the way up, it held it for a little bit, and then it blasted through this week. This was a good week. It tested right here. This was Thursday, this bar right here, tested the 390 level and bounced pretty good. Here's where we finished yesterday, Friday, November 18th. So I'm pretty bullish or I should say I'm pretty optimistic through the rest of the year. The fourth quarter of the year tends to be a bullish type of quarter. And I just think that this 390 level, I'm hoping that it'll hold in the market will just keep going. Obviously the next line in the sand has got the downsloping 200 day moving average right here, right around $405 a little above that. So that could be the next test. If the market starts to go up, look for the next area of resistance right up here. I mean, I hope it gets there. We're all hoping for those bullish people out there. We all want the market to go up. Has spent a lot of time on the down through 2022. I'm hoping 2023 is going to bring us some better days ahead. So right now, I'm keying on this 390 level. When you're trading options, specifically what we do, we sell put options. We want the market to either stay flat or go higher. So in 2022, we've taken the fewest positions we've ever taken in our newsletters because the market's been telling us it's not such a great time to get into bullish trades. And we stayed out quite a bit, which has helped us, has kept us from losing more money. So that's a good thing. So watching the charts is very important. So for me here, the S&P 500, I like where it's going here. I like to support at 390. Here, this level right around 348 was that last low on October 13th. Hasn't retested yet. A lot of people are thinking, ah, this is just a bear market bounce. We're going to come down again and test this low here and possibly move even lower. I don't think that's going to happen by the end of the year. I'm more optimistic. And I think the market is on a good uptrend here, even with all the bad news out there, even with rising interest rates, inflation, all that inflation starting to come down. The last two inflation numbers, the last two months, just we had this one last week, numbers starting to look like they're coming down, which means the Federal Reserve might start to pull back on their aggressive rate hikes, which is good for the market. The market likes that. So let's see this thing start to go and keep going higher. Let's look at the triple queues. It represents the NASDAQ. The NASDAQ has been the weakest of the three big indexes. Here, same thing. October 13th, we had that low and almost made what we call a double bottom. Didn't come down to all the way down to here, but went up, came back down again, bounced at this 260 level and has been going up again. You can sort of see this as a bull flag. There's another pattern. The patterns are things we look at as well. Bull flag is a pattern that is typically more bullish and let me draw it out for you. So let's show you what I'm seeing here. So you have this long kind of flagpole here. Let me redraw that. We have this long flagpole and then we have the pennant. Okay, so let me make it a little bit darker so we can all see it. Give me a second here. A little manual labor so everyone could see what's happening. We'll fix this line here too. Darken it up, thicken it up, one, and then the last one right here. And so you'll see what's called a classic bull flag. All right, and we'll click on this. So what you can see is you got a flagpole. You have the pennant. So typically the next move should be up and outside of the pennant. This is a bad bull. You got the pole, the downsloping flag, pennant I should say, and then it moves up to the upside. So I'm hoping that the Nasdaq, you know, the next couple of days you'll start to see some movement up and outside of that flag. Let's look at the Dow Jones, which has been the strongest of the three. This is the DIA, see up here? DIA is the symbol. Look at this power move higher. Had the double bottom right here and just has gone ballistic. Almost taken out the August highs here, which is good. So the next line in the sand obviously is this level right around 343, 344, this line right here. So it will probably hit some resistance there. If it can get through it, then we got some clear sailing possibly to all time new highs again. So the Dow looks pretty good. Going back to the S&P 500, it has a little bit of work to do. You know, here's the August high. So the Nasdaq and the S&P 500, not as strong as the Dow, but starting to get their move on here. So that's good. One more time with the, with the triple cues. Obviously, here's the 200-day moving average. So that's the next resistance line in the sand. So things are looking better. Q4, typically more bullish. So let's just hope that it can keep running into the end of the year. Let's look at some individual stocks. Let's start with Tesla because, you know, Elon Musk is making all kinds of news these days. He's finally taken over Twitter. The employees are leaving and mass. I mean, I don't know if Twitter is going to survive or not. I have no idea, but it seems like, you know, Elon taking over the whole company is, you know, it is what it is. And, you know, he's giving ultimatums and it doesn't seem like he's making staying there as an employee very rewarding or appealing. I don't really know what to say, but Tesla itself is probably going to get hit a little bit because if he, you know, I've heard he's had to sell Tesla shares to, you know, to keep Twitter afloat. He may have to sell more shares. And we know a lot of his value is within having a lot of Tesla shares. And so if he has to keep selling more shares, that could push the stock price down. Obviously, you can see right here, Tesla hitting a double bottom here around 180. It's the lowest it's been in a while. Let's go back and check the, let me move myself over here for a second. Let's look at the weekly chart for Tesla. So, you know, it's come down. They, you know, we've got, let's see, look back period. The lowest it's been since, you know, sometime in 2020, you have the upsloping 200 week moving average right here, right around 160 and change. So that could be the next spot where the stock could be shooting for, you know, low 160s. So Tesla, you know, I think the, I think the bull market or the bulls are starting to get a little nervous here. It's fallen through this, you know, this 200 level or low 200s, just the past two weeks. So Tesla, you know, keep an eye on that. You know, if things look really, really bad at Twitter, I don't think Tesla is going to look so good either, but that's just my take on it. You know, other people may have different opinions, but Tesla, you know, the big one this week, let's look at some other stocks as we do. We look at the more popular stocks. These ones are most interesting to people because a lot of people are invested in these stocks. So here's Apple. Let me move this over here. So we all know what we're looking at. Here's Apple, Delhi chart of Apple, down, up, down, support. Apple's been finding support right around, you know, 135 or so. This line in the sand had bounced nicely the past two weeks or so, gotten back up 150. Here's, here's what finished yesterday, Friday, November 18th, got above 150. Good. So, you know, we sold a put spread in our newsletters this week, and that's because we feel that Apple's got some momentum here. And, you know, we decided to step in. We sell some out of the money, put option spreads, that's what we do. And as long as the stock goes up or stays sideways, we can make money. The great thing about selling options is that your directional assessment doesn't have to be pinpoint accurate. That's the greatest thing about selling options is that you could be completely wrong on your directional assessment and still win on the option trade. That's what we love to do. So if you want to learn a little bit more about selling put options, go to our website. We have our put selling basics right here, our free ebook. This is the book, ebook that I wrote about what put selling is, what it's all about, why I love it so much. Go to our website, put your name and email address here. I'll send you an email with a link that includes the free copy of the ebook. So that's why we love selling put options. We sell put option spreads because we all know we're going to be wrong sometimes when we're trying to predict the direction of a stock. But when you sell out of the money strikes, it gives you this nice cushion for directional error until the stock starts to move back in the direction where you think it was supposed to go in the first place. So that's why we like to sell put options and put options spread. So Apple, we got a trade on that. AMD, another favorite of mine. The chip sector, though, has been hurt all 2022, just like the rest of the stock market. So the chip's been coming down, but AMD's had this nice little rally the last week or so. So we've gotten into a trade on AMD as well, sell some out of the money puts. And all we need is the stock to go up or stay sideways. We can win in all those kinds of different directions. We can even win if the market goes down. We just don't want it to go down really, really far. But in any case, that's the risks we're taking. We saw some upside happening here, so we got into a put selling trade on AMD. Just like the other chip stocks, we look at Nvidia as well. You can see the down moving in Nvidia. And back here, there was another bull flag. You can see it actually powered higher after the bull flag. But this was beginning of or the end of 2021, just got caught up in the down move with everything else. Micron, same thing. Chip sector. Micron had a nice little move this past week as well, but has fallen back down a little bit, but it's still above the down trending channel, which we like. If it can stay above the down trending channel, maybe it can start to push higher. So the chip stocks, keep an eye on those. What else we have? Disney is another stock. I want to look at another name brand stalwart still hanging around the lows. Had earnings the last week, powered lower, still kind of hanging around the lows. So it depends. I've been looking at selling some put options as well, way out of the money, way down here to really get a good deal on put song, maybe get some, pick up some shares of Disney down here if possible. If you don't, if you have no idea what I'm talking about, like I said, go to our website and get our free put selling basics guide. So Disney, we know Disney is going to go back up over time. They just raised their prices again, but people are still traveling. So that means people are still paying for tickets, higher prices for tickets. That means more money for their bottom line. So eventually that will show up in the balance sheets and that should start to turn higher in the long run. Disney, Walmart, another stalwart. I've talked about Walmart before, really doing well. Here's how we use the RSI. RSI got very oversold here down in the 117 range. I picked up some shares down here and it's just going up since getting above 150 this week, which was nice. So, you know, we like Walmart on the other hand, Target, which, you know, a lot of people consider in that same category as Walmart had a big move down this week. It was sitting right on the 200-day moving average. Earnings came out and knocked it down, you know, $20, $25 a share, almost $30 a share. It finished at 180 before earnings and got down to 150. It popped back up to 162 and changed. So Target, you know, it was a little tough for them. Walmart looking good, Target, but if they have a good holiday shopping season, I think the next earnings could be decent. So keep an eye on Target there. Let's see what else we have in our list here. Well, let's look at Amazon. Amazon hanging around the lows still. You know, a lot of the tech stocks got hurt, you know, a couple of weeks ago when their earnings came out. Facebook, Meta, Apple, I mean, Apple a little bit, Amazon, Google. So here's Amazon hanging around the lows. Here's Google. You know, they all got hit as their earnings came out, made this low pop back up, but still kind of hanging around on the lows there. Let's look at Meta. Same thing. You can see the air pockets, which is the gap open, closed here, open here, at least this big gap. And that's what people talk about trying to fill the gap, you know, subsequent moves that stock starts to rally that'll close the hole here. So it has to, it has to at least touch the bottom of this can't this bar right here in order to close the gap. So Facebook, Google, Amazon, all the biggies were getting hit pretty good. Netflix on the other hand, which we also have a put spread on, we sold a put spread on Netflix. Netflix is doing good. So we got in around here or so and started to rally up, which is good. So that's moving, that's working for us, which we like. But Netflix has a long way to go. It was up $700 a share, you know, back towards the end of 2021. It's falling, falling, falling big gap here. And you know, it's another gap here. So it's got a long way to go, but it is above the 200 day moving average. Here's the support line right around 255 or so. And it's staying above it, which is good. So maybe Netflix has figured things out, and they'll get going again. Let's look at some other stocks. Nike, we just closed out a profitable trade on Nike this week. Why? Because it rallied. And we were able to get out of our puts that we sold. You sell it put at one price, and then you buy it back at a cheaper price, you lock in your profit that way. That's how we do it. So Nike had a nice rally locked in our gains. And I still believe in Nike for the long run, hanging around these lows here. Let's look at the monthly chart. Nike went all the way up to $180 a shares come all the way back to $80 a share. So is this the low? Is it going to hold? I'm hoping I know Nike one of the best brands on the planet. Can it be held down forever? I don't think so long run. It's going to go back up. Let's see what else we have here. Anything of note that's worthy? We like the healthcare stocks, still the pharma stocks still doing well. Let's look at some of those quickly. Eli Lilly hanging on the highs. Bristol Myers hanging on the highs. Pfizer hanging around the middle. So if you like healthcare, look at the some of the stocks that haven't made the huge moves yet. Merck. New highs here. What else we have? Did we look at Johnson and Johnson? Where's my Johnson and Johnson? We'll just type that in. J&J starting to move up as well. If you like the healthcare industry as a whole, here's the XLV. We talked about that. We've made some trades on the XLV. Looking like it could be getting ready to pop through 135. Here's another pattern you can look at. You've got the uptrend and then the flat top here. This is, I believe, what they call an ascending triangle. It's going up, up, up. You have all this support going up, trying to push through the 135 level. The more times it tries, eventually it's going to succeed. Keep an eye on that 135 level on the XLV. If it pops through there, it's going to keep going. That's another pattern that we look at to help us decide. It's time to get in. Verizon. I'm getting closer to possibly getting in Verizon. It's gotten above. Here's the 20-day. Here's the 50-day. Just peaking above both of those. Maybe Verizon has finally, finally made the bottom here. Let's look at the long-term chart on Verizon. Let's look at the monthly. I want to get in on Verizon. Is it time? It's falling a pretty good way on the monthly down to 35, getting close to over some oversold levels on the RSI, the monthly RSI. I'm looking for some puts to sell, possibly down here, way out of the money. I think Verizon would be a great stock to hold long-term. But is it time yet to jump in? It's getting there. It's getting there. Not 100% assured yet, but I'm keeping an eye on it. Costco doing well. McDonald's, I wanted to highlight. McDonald's just keeps doing well. Had the pullback here, got to some oversold levels, just like it did here the last time, and it's bounced. Every time it gets oversold on the RSI, it bounces pretty good. McDonald's, Pepsi, these are two great dividend paying companies. Strong stalwarts, bottom left, top right. You can just see the movement. The S&P 500, the general market's been going down all of 2022. Look at Pepsi just been going up, up, up, up, up. It's got pullbacks, but it's gone up overall. Pepsi, McDonald's, great dividend paying companies. Let's see what else is on the list. How do you make your list? Where do you find these stocks? You can go to look at the dividend aristocrats, dividend champions. These are companies that have raised their dividends every year for 25 years in a row or more. These are called dividend champions. Dividend kings are the ones that have raised their dividends 50 years in a row. So these are quality, quality stocks that believe in the strength of the company. They're willing to raise their dividends every year. That means the internal officers of the company believe they've got a strong company. They could raise their dividends and the stock price follows. The stock price goes up. So if you're looking for stocks to possibly trade, keep an eye on those dividend achievers, dividend champions, we call them. Here's Warren Buffett starting to break out. I talked about this possibly last week. It was maybe. Let's pull this out a little. Here's the 200-day moving average right here. Started to pop up. I said if it can get above the maybe 308 to 310 level, it could go. So why we have the W pattern? Can you see that? You can visualize a W pattern, which is typically a bullish pattern. When it can get through the middle part of the W, that's a good sign that it's probably going to keep going. Berkshire Hathaway, this is Warren Buffett's fund. You can buy the Berkshire Hathaway shares itself for $310 a share. It looks like it's ready to keep going. If the rest of the market goes up, this is going to go up as well. On our website, I bring this up now, if you go to the More tab, and I'm sorry, over here in the Services tab, which shows our two newsletters, and if you go to the shop, here's another, a different options trading strategy I wrote about how to piggyback Warren Buffett and how to piggyback all of his picks in one easy-to-understand options trading strategy, the secret to buying Warren Buffett for pennies on the dollar. It's a cheap way to get in and follow him. I mean, we all know the Oracle of Omaha, he's been pretty successful. So if you want to take a look at that, you can. Here's our newsletters and our one-on-one coaching, if you ever need some more help or want to get started learning about options, we can help you there. All right, so that's Berkshire Hathaway. What else? IBM, really strong. Look at Big Blue done really well. Just bounce off this 115 level and is rallied up close to 150. Is that an all-time new high for IBM? No, it's still got a long way to go. It's got to get up above 200. So what are some of the other stocks? Well, we know the energy sector has been doing very well. Obviously, price of gasoline and oil has been going up just a long time now. So the oil sector doing well. This is ExxonMobil, XOM. Here's the symbol XOM. We can look at Chevron, which is CVX, doing well as also. Two of the other industries, the other stocks that I'm looking at, Con Edison, the utility companies. Con Edison, biggest utility company in the New York area had just bounced off this oversold area, around $77 or so. $78 is rallied pretty good, rallied up $15. Southern Company, also another utility company, sold off a long way. Still kind of making some sideways action. We actually sold some puts on Southern, hoping for that move up. But sideways actions works as well for us. The stock goes sideways. That option contract just starts to decay, decay, decay, making it easier for us to buy back and lock on a profit. So that's another great thing about selling put options. Stock can move sideways. You can still make money on the options contracts. All right. I think that's about it. Nothing else major to show. Let me look through the list here. We're doing okay. Oracle looking pretty good. Oracle also has that. Let me show you here. You got the upside support and then the flat top right here. Okay. So keep an eye on Oracle, getting above that 80 level. 80 level right here. Got the upside moving up flat top, trying to get through that 80 level. If it does, it's probably going to keep going. So keep that pattern in mind. You can go to a website called chartpatterns.com. Chartpatterns.com also gives you, you know, all these patterns, bull patterns, bear patterns, flags, all these triangles, congestion patterns, all these things that you can just teach yourself on what to look for on charts that can help give you an idea of which way the stock is going to break higher or lower. All right. I think that's all for me today here with these stock charts. One more time. Wrap it up with the SPY. Once again, looking at this 390 level to hold, hopefully, if it does drop back down again, it could drop back down to, you know, 360 or even the 348 low. I don't foresee that happening through the end of the year. I think the markets has let us know that even with all this bad news out there, the market is looking stronger. So I think it's going to stay here, possibly get through the 200-day moving average and keep going. All right. I hope this has been helpful for you. Please give me a thumbs up in this YouTube video. Don't forget to subscribe. Hit that red subscribe button. Leave me a comment below. Send me an email. I'll always answer. Go to our website. Download our free or put your name in for our free put selling ebook. Let us know if you need help. We have our coaching information. And that's about it. I hope everyone has a great weekend and a great trading week ahead. Next week is the Thanksgiving holiday here in the United States. So I won't be making a video next week, but I'll see everyone the following Saturday. All right. This is all for me. This is Lee Lowell signing off.