 Hey everyone, Lee Lowell here, smartoptionseller.com. Hey, today is Sunday, April 10th, 2022. Welcome back. It's good to be back. I've been gone for the last couple of weekends. Took some time off, spring break with the family. Rest it up, ready to go. This is the Sunday edition of our Saturday synopsis here. And what do we do? We look at charts. That's what we do. I've been doing this for a while now. I've been in the business, the options trading business, for 30 years now, a little over 30 years now. And looking at charts has been my main source of how I get into and out of my trades. This is what I do for our newsletters. I teach people how to sell put options, sell put options spreads, and we use the charts to help us gauge when it's time to jump into a bullish type of trade, which is what selling put options and selling put options spreads is all about. So that's what we do. So we look at the charts. Indexes, we look at individual stocks. We look at the moving averages. We look at other indicators that we have. We look at support and resistance levels. And we try to gauge when it's best to get in and get out. So what we do is we look at charts and I show you what I'm seeing, what's been happening over the last few weeks and what we see maybe coming down the road. So let's just jump right in. And we typically start with the SPY however you wanna say it. This is the Exchange Traded Fund for the S&P 500. Trades just like a stock. I like to look at the S&P 500 because I believe it gives me the broadest measure of how the market is doing as a whole. We look at the S&P 500, the NASAC, and the Dow Jones Industrial Average. But I tend to default more to the S&P 500 and we use the SPY as our gauge. And so what you're seeing here on the chart, on the screen for those newcomers here, this is the charts that I look at, the type of charts I look at. This is, I mainly default to a daily chart which shows the trading activity for one full day. So each line on the chart, each one vertical line is one day's worth of trading, the high and the low and the open and the close. I don't use candlesticks because that's just not what I do. Not to say that it's bad, but I've always learned to trade with the open, high, low bar charts, not candlesticks. And I have three moving averages. I have a 20-day, a 50-day, and a 200-day, all simple. These are very widely followed moving averages so they tend to become self-fulfilling prophecies. It's just how it works. And down here I have the RSI. It's a 14-day RSI which is an overbought, oversold indicator. Just trying to, just tells me when things get a little overheated or a little, you know, oversold doesn't mean that the turn is gonna happen right then and there, it's just more of a warning. So I keep it pretty simple. Three moving averages, the RSI, and basically I draw these other patterns. We have channels, we have triangle congestion patterns, we have bear flags, bull flags, head and shoulders patterns. These are all things that you could learn if you wanna become a technical analysis trader. Technical analysis is what's called looking at the charts. Fundamental analysis on stocks is when you look at all the underlying data, the sales, the earnings, the revenue, dividends, PE ratios, all that stuff. That's the fundamental data. So I tend to default more to being a technical analyst. I like to look at the charts, although it is good to know the fundamental underlying fundamental data. If a company is not producing profits, then the stock chart is not going to go up. All right, you need to have a company, if you're in for the long term like I am, you wanna have a company or you wanna follow companies that have increasing sales, increasing revenues, increasing profits, that will dictate which way the stock chart is going to move. Over time, you can have the greatest potential of a company, but if they don't start producing profits after a while, people are gonna sour on it and the stock chart's gonna go down. So we tend to focus on companies that are more mature, older, good dividend payers, been around a long time, keep pumping out good profits and if you follow companies like that, you will be rewarded. So what we do in our newsletter is that we sell puts and we sell put option spreads. So we like to look for bullish types of stocks, whether they're currently moving higher or if they're on a pullback and they're about to make another leg higher. So we look for signs that tell us when a stock's going to move up. So but let's just look at the general market because individual stocks can also tend to follow the market as a whole. There's lots of big money, hedge funds, regular funds, institutions, endowment funds that buy the indexes as a whole. And if there's a lot of demand for the indexes, that means the stocks within those indexes have to move up as well. So we like to follow or like to look at the general market as a gauge to tell us individual stocks should follow as well. All right, so let's take a look. Let's see where the S&P 500 has been. It's been a few weeks since I was last here. Let me look at the date. I think the 19th of March was the last time I was here. So that was right around this date here, right around here, okay. So right under the 50 day moving average. So let's see where we've been since then. Last time we were here was right around here. The market had made a nice power move higher, popped out of the downtrending channel that I've been talking about. So I draw these channel lines. It's a good visual to just tell you which way the market is moving. Okay, you can see the blue lines here that I've drawn. We've got this nice uptrend, got a little pullback. And then the market's been in this nice uptrend as well till we got to January 1st of 2022. Then the market hit this couple of month downtrend. And the way to tell whether a market or an individual stock is making a move in a different direction is when it breaks out of whatever trending channel it's currently in. So we had this downtrending channel and as you can see here, the market S&P 500 popped out of it, was able to pop above the 20 day, was able to pop above the 50 day, and was able to pop above the 200 day moving average. That's a very powerful move when a stocker index could power above all three moving averages like that. That's pretty powerful. So it had this nice couple of week rise right here, this good vertical move. And then in the last couple of weeks we've had this other little pullback. But it's pulled back to the moving averages. You'll find if you watch stocks for a while the moving averages really become like a magnet to whichever way, whether a stock's moving up or down, it can pause right near the moving averages. That's just how they work. And then the market decides which way it wants to move next. Now, so I think since we've been in uptrend, we had this nice power move higher. This is, I believe, a little bit of a pullback within this new uptrend. I'm bullish, I'm pretty optimistic about the market as a whole in the long run because I know the market goes up over time. No matter what the news out there is, no matter what the headlines are, the market finds a way to go higher over time because the market is still made up of companies that keep making products that keep producing profits. So the stock prices have to go up over time. No matter what narrative out there is, we have the Russia slash Ukraine war happening right now, we have inflation, we have rising interest rates here in the US, but yet the market will find a way higher over time. In the very short run, it's gonna react to these news items. So depending on what type of trader you are will dictate what types of trades you take. I'm in for the long haul. So I build up my retirement portfolio for the long term because I know the market will go up over time, but we're talking about shorter term here. So where the market is right now, we've had this nice little power move higher, little pullback, but you can see we've got the 50 day and 20 day moving averages kind of converging on each other. Got the blue line here, which is the 20 day, this, I'm sorry, we've got, this is the 200 day. You got the 200 day and the 20 day right on top of each other. Here's the 50 day right here. So the S&P 500 kind of finished last week, Friday. That was the 18th, right? What day am I talking about here? I'm sorry, April 8th, I've still a little lost with what date is April 8th, Friday. The market finished right converging the 20 day and 200 day moving averages. So I'd like to see it hold here for next week and I'd like to see it embark on this next leg higher. I'm bullish. I think the market is gonna be going up for the rest of the year. Within little pullbacks, you were always gonna have pullbacks but I think overall, I think we're gonna be headed for all time new highs again, probably in the next couple months. But for right now, we have to contend with what's happening here. So you have the 20 day and 200 day moving averages sort of as a magnet and we wanna see the market hold here and move higher next week. Sure, there's always a chance that it could pullback but I don't really see that happening. We have these news items out there are becoming a little old right now. I mean, everyone's sort of been able to react to these news items and I think the market is looking beyond that, looking past that. I think that's why we've been able to have such a power move higher, get a little pullback to draw people in and then I think we're gonna go. I mean, that's just me. Of course, that could be wrong, but I think that we're just taking a little pause here and then the market should move higher in the next week. That's the way I'm seeing it. So let's look at the NASDAQ, which has been a little weaker than the S&P 500 because the NASDAQ holds these really Momo stocks that could move up and down a lot during the day. A lot of people pile on just because of what they hear and see and read and chat rooms. So you got a little bit more speculative stocks in the NASDAQ. So those moves are a little bit bigger. So it's not as strong showing at least to me like the S&P 500 is. So you had the power move higher, it had the pullback. So right here as well, this one's sitting on the 20 day moving average and the 50 day moving average. You'll see that these, the markets will find these points and it acts just like a magnet. I'd like to see the NASDAQ power higher because once that gets going, then it brings everything else into the fold. That just gives the S&P 500 more ammunition to move higher as well. We like all the indexes to go higher, but the NASDAQ's been a little rough of late as we know. So we'd like to see the 20 day and the 50 day hold here and then move up higher next week. The Q1 earnings, quarter one earnings are in the books at the end of March, the first three months of the year are in the books. So earnings announcements are gonna be coming out, I think starting this week, usually around the second week of that fourth month after the first three months, then you get, so the middle of April, earnings are gonna start to come out in droves. So we'll get to see how that first quarter of the year of 2022 was for a lot of companies. It was all within this downtrend. So if companies can start beating the estimates, I think it's just gonna give the market more power to move higher. So we'll see. So keep an eye on if you have stocks, keep an eye on their earnings dates. But I'm optimistic. NASDAQ still looks a little weak, but it may bounce, it may bounce right here. Let's look at the Dow, we can use the Diamonds, DIA, that's the exchange-traded fund for the Dow Jones. Still kind of stuck in this range. The moves aren't as big as the S&P 500 and the NASDAQ. So it's just, the Dow's got the old, old, stalwart companies in there. There's only 30 of them. So the index itself is not hugely diversified like the S&P 500, but a lot of people still consider the market, the Dow Jones. But for now, it's not really doing too much. So that's the Dow. And what else can we talk about? I like to look at the futures market because the futures trade almost 24 hours a day and we want to take a look at those. Give me a quick second here. All right, so we wanna look at the futures here. E-Mini, S&P 500 futures and E-Mini NASDAQ futures. They trade almost 24 hours a day. So let's look at the NASDAQ futures. As you can see, looks similar to the triple Qs. You can see Friday, April 8th, finished right on the 50-day moving average here. Let's blow it up a little bit more. So here's the 50-day moving average and that's where we close for the day. That's the NASDAQ and we can look at the E-Mini, S&P 500, same thing, a little bit stronger and it's holding above. This, here's the 200-day moving average right here and here's the 20-day, the blue line. So those, once again, are converging just like the SPY. So it's holding right on those two levels. I'd like to see the market move up higher at this point. Some could say this is sort of a bull flag here. Bull flag is when you get a nice move up and you get this downward sloping pennant and then it jumps again. So I'm more bullish on the S&P 500. I'd like to see that for next week. Let's take a look at some individual stocks as we typically do. But first, we're gonna look at the, because I've been getting some questions about this, we're gonna look at Warren Buffett's Berkshire Hathaway fund. And the way that it's been moving and I've been talking about this 33-page report that I wrote about a specific strategy that takes advantage of Warren Buffett's fund. So we're gonna look at the Berkshire Hathaway class B shares. Now, for those of you that don't know, Berkshire Hathaway has two shares of classes. They have the class A shares and the class B shares. Class B shares trading right around $353. We'll look at the class A shares which is the most expensive stock on any exchange around the world. And when I hit enter, you're gonna see what the price is for those of you that don't know. The class A shares trade at a whopping $529,000 U.S. per share, $529,000. So a touch out of the range for most of us to buy shares in that. So that's why they created the class B shares which is, as I just showed you, $353, which is a little bit more available to I say most people if they wanna buy one share, it's $353. So we concentrate on the class B shares. As you can see, Warren Buffett's been doing a great job with his funds and he's been actually buying back a lot of his own stock. Companies buy their own stock when they feel really confident about their company. Now, Warren Buffett, he buys shares in many, many different companies. That's what makes up his fund. But recently he's been buying up his own stock because it's just doing so well and it gives him an opportunity to just buy more companies as a whole that he holds on to. So anyway, it's been going up compared to the S&P 500. Look at the SPY. You can see it's been having a little bit of trouble of late but Warren Buffett's company has been doing pretty well, hitting all time new highs again. And so what I've been talking about is on our website, smartopsandseller.com. I wrote this report. It's not free. It's a small amount of money just because I put a lot of effort into it. The secret to buying Warren Buffett for pennies on the dollar, it describes a certain option trading strategy that you can use to take advantage of piggybacking Warren Buffett with his actual trades but putting a lot less of your own money on the line but yet having a tremendous potential for huge returns. So people have been asking me about this. I don't really advertise it. But if you go to our website and you go over to the More tab here and you click on shop, you'll be able to find it. I don't really put it out there so much. But anyway, that's the Warren Buffett thing. That's the Berkshire Hathaway. People ask me about getting into the Berkshire Hathaway fund. And so Warren Buffett does a great job with that. All right, let's move on. Let's talk about stocks that we typically talk about here. We talk about more of the popular names. So let's just jump right in. We're gonna talk about AMD because I always talk about AMD full disclosure. I am long shares of AMD. I wanna see this thing go higher. So it's not a recommendation here, just telling you what I do. I have bought shares of AMD. And as you can see, we have this massive, massive support line right around the $100 level. And I've been accumulating some shares within that range. I had some more orders in right at the hundred level on Friday did not get filled. But we'll see. It has come down to this hundred dollar level many, many, many times and it's been rebuffed each time. But if it breaks, if it breaks through 100, it can drop pretty quickly to whatever the next support area is. We don't know what that support area is. But if it bounces, it's gonna bounce hard, especially if the general market goes up as well. AMD needs to get off its butt and go higher. Now, along with that, we have Nvidia, which is another chip stock that gets a lot of action, very popular as well, is looking kind of weak. You know, it's been coming down. It's now below all the moving averages here. Here's where it closed on Friday, April 8th. Closed practically on the lows. You can see a little teeny dash mark on the right side of the bar. That means where it closed for the day. The closing price is very important because it can tell you what people are thinking, where they left off at the end of the day. And when it closes on the low, that means people weren't feeling very optimistic about the stock, at least on that day. And it has fallen below the moving averages. So if Nvidia is weak, that might mean that AMD could fall in sympathy. But if they both can jump, then they're both gonna power higher. And so I really wanna see AMD hold the $100 level here and move higher. So that's what I've been watching. Let's look at Apple. Now, you can see a lot of these things that I've drawn. Here's what's called a congestion pattern. Here's the channel, the W pattern. All these things, you can learn about these things. You just go online, do a Google search on chart patterns, and you'll come up with lots of different websites and you'll see things that look like what I'm drawing as well. And these are just things that help you gauge which way the market might move. Now, Apple had been in this downtrending channel and it was able to power through it, which is good having the slight pullback like the general market. But once again, you can see it's fallen right on or close the low of the day for Apple on Friday was right at the 20-day moving average. You can see right here where it connects with the moving average. If everything goes well next week, Apple will pop off the 20-day moving average and start its next leg higher. We try to use these moving averages and just general market direction to try to gauge which way the stock is going to go. More likely than not, all things going right, Apple should pop here, should pop off the moving average. But if everything's really weak, it can go down and maybe connect with the edge of the downtrending channel here. So maybe around, I don't know, $162, $163. But if it can pop here, it could be on its way to $180 or higher, all right? Let's look at Tesla. And these are things we look for in our newsletters. We look for stocks that are getting ready to pop higher and that gives us the green light to get into new trades. Now, Tesla I've always said, it's a beast. For me, it's hard to gauge with normal technical analysis where the stock wants to go because there's so many people that love the stock that they'll just keep buying it up regardless. And so I don't, for me, we don't really make many trades with Tesla because it's very erratic. But you can see it was in this downtrending channel for a while, popped out of it, which is good. So the best guess I can make is that you've got this 20 day moving average, upsloping 20 day moving average. So that's a good sign. You can see the moving averages are sloping upwards which gives you the meaning that the stock is more bullish than bearish. When the moving averages are sloping upwards versus sloping downwards, that means the stock is currently in an uptrend and should stay in that uptrend unless something really major happens with the company. So the next stop, if Tesla does come off a little, we'll be right at the 20 day moving average here just under $1,000 a share. But if it does that and the rest of the market goes higher then Tesla should power up again. And they wanna shoot for this all-time high right here which is maybe $1,230 or so. So that's with Tesla. Let's look at some other stocks. Amazon, we look at the biggies because this is what most people follow. Amazon, just a crazy, crazy looking chart down, I'm sorry, down, up, down, up. So kind of like a W pattern, you can kinda make out the W pattern which is typically a bullish pattern. Was trying to get through the moving average here. Did for a day, but then it came back down but here it settled right on the 50 day moving average here. Could be bullish for next week. Everything needs to go up and it'll go up as well. Let's see, what other stocks? We look at Netflix, we look at the biggies. Netflix, this one's interesting. We've got this support right around $350 for Netflix. It could be showing a reverse head and shoulders pattern. If you know what that is, you got a shoulder here. Just pretend someone's standing upside down. You got a shoulder ahead and a potential other shoulder forming here. If it could find support at 350 and create this, not through it, a couple days down here, it'll look like the reverse head and shoulders. That's typically a very bullish pattern and if it could hold here and the rest of the market goes up, Netflix could possibly start its journey on the next leg higher. So keep an eye on Netflix. We'll look at Facebook because Facebook sort of had the big drop like Netflix on earnings. Here's a big air pocket, big gap down. Facebook sort of has this more of a V shape recovery here. What I liked and I showed this earlier, price action moving down, prices are moving down, but yet the RSI is moving up, which is a signal that the selling has really slowed down and that the selling is losing steam. If the price action is still moving lower but yet the RSI is moving up, that's called bullish divergence. And you can see right here pretty much Facebook started to go higher. It's trading right around. It's moving average, here's the 50 day, here's the 20 day. They're trying to converge here. So Facebook could find some support. We'll see. I don't really trade Facebook much. So I don't really have too much of an opinion on that. Let's look at Shopify. People asked me about Shopify. We've looked at it before. This is Shopify. It's an online website type of online. You can sell products. You can use Shopify to create a website and sell products. Been in this massive, really hard downtrend. Went from $1,700 a share all the way down to $500 a share. Big, big move. Where is it now? It started up a little, moving up off the lows, but got knocked back down. Looks kind of weak to me here. Finished on the lows on Friday. You can see the dash mark closed right on the lows. So Shopify, still looking a little weak. I wouldn't get into it here if someone is holding a gun to my head. I'd say it's still moving lower. Let's take a look at some other stocks that could be worthy. Let's see. Nike, okay. So let's talk about Disney and Nike. These stalwarts that I like to talk about. Disney, 130 is my level. I have orders in to buy more shares at 130. On Thursday, it ticked down to 130.02. So I missed my buy by two cents per share. Still have the orders in to buy 130. There's the support. Also, triple bottom potential, reverse head and shoulders pattern. So these are more bullish patterns that you'll see on lows. Triple bottom support that it can't bust through potential reverse head and shoulders pattern. So I'd like to see Disney move on its way back up. Disney's a company that's gonna be around just celebrated 50 years, 1972 to 2022, 50 years, they got big celebrations going on. Gonna be around for another 50 years. I'm pretty sure about that. It's just a matter of time before Disney starts to go back up. Disclosure, I'm long Disney shares. Nike, same thing, a stalwart of a company, best known brand on the planet. It's coming down, it's been coming down. We sold some put spreads on Nike because I'm hoping that we found a bottom here. But you know, in the long run, Nike's probably gonna go back up. Let's look at the long-term chart here. Let me look at the monthly, let me just secondly move myself here, the monthly chart. So Nike's just been going up, up, up, up, up, up, up, up, having a pullback here. Here's the 50-day moving average. Right around $109 a share, it's at 128 right now. I don't really wanna see it fall that far. But Nike's a company that's gonna be around a long time too. So we got Nike, Disney. We're gonna look at Walmart. Also on long shares of Walmart was getting long at 135. I showed you for a long time. It's got this support right near 135. Dip below it a little bit and then look at it power higher. Walmart is a solid company. A solid company, all time new highs. Let's just double check that. Yep, you can see right here. All time new high for Walmart. So that one's working out pretty good and it finally blew through this wide channel that had been in. So that's Walmart. What other companies can we really... So let's look at the healthcare stocks. I mean, everyone needs healthcare. Everyone is gonna get sick at some point in their lives. Healthcare, I've always been bullish on healthcare. Let me move myself back down here a little bit. And we'll quickly look at that. Eli Lilly on the highs. Bristol Myers on the highs. Pfizer, and you can see Bristol Myers. If you see the yellow or green, whatever you call that is that means it's a new high for the year. Or maybe even an all time new high. So we got Lilly. Eli Lilly, Bristol Myers, Pfizer. Now Pfizer, this could be interesting. This could be ready to blow. This could be ready to blow higher. Got a little bit of a resistance right around here. Let's draw this line. Let me start this over. Right around here, you can see this has been resistance. If it can get through there, if it can get through there, it's on its way to move along with its peers and go higher. So if it can get above, let me see what level this is, right where the blue line is. Right around high 55, just under $56. If it can get through $56, it'll probably work its way to 60 and maybe take on its highs up here. So keep an eye on Pfizer. I like Pfizer. I might have to look at that for a trade in our newsletters for this week. But it also depends on when the earnings are. We don't wanna hold trades over earnings, especially if the earnings are coming up within the next few weeks. Merck, look at this. All these stocks are moving higher. Johnson and Johnson. Now if you wanna play all these stocks in one shot, you have the XLV. Here's the fund, the healthcare fund that holds all the healthcare companies. And so you can just see it's been powering higher. We played this a few times before. When it bounces off the moving averages, so the XLV, if you like healthcare, this is how you can get them all in one shot. All right, let's take a look at a couple more and then we'll call it a day. PayPal is something we're also in as well. We sold some put options. One, it's been on the lows, hoping that it's gonna rally. Sitting right on the 50 day and 20 day are converging. I wanna see PayPal go higher. I'm big on the online payment sector. Costco also just a beast keeps going up. McDonald's still looking good. Above the moving averages, Pepsi. Pepsi's had this nice run. Look at this nice, beautiful up channel right here. Good for Pepsi. Twitter. A lot of people have been talking about Twitter lately. Let's talk about Twitter real quick. The news this week was that Elon Musk came on the board of directors for Twitter, started saying that he's bought a big stake in Twitter so that you can see the gap up here. The power move higher created this air pocket. Popped above the 200 day moving average. The downsloping 200 day moving average, which means the stock has been in a downtrend and it's pulled back a little. Is Elon Musk buying a big stake and getting on the board? The real reason that Twitter should be going up, it's gonna depend on how Twitter does earnings wise in the long run. These short moves like this are driven by headlines. So Twitter popped, pulled back. Is it gonna pull back more to where it was trading prior? Who knows at this point? But the cat's out of the bag about Musk. Maybe it'll pull back again. That should be long-term support if it pulls back here. And then maybe it'll continue on higher for the foreseeable future. Let's see what else we got. We looked at Facebook. Yeah, I think that's about it. I think that's about it. We always, well yes, we like Coca-Cola. I think it hit all time new highs. Let's take a look at the monthly. Let's take a look at the monthly. Yep, Coca-Cola all time new highs. You wanna talk about a stalwart and a great dividend paying company. I'm not making recommendations here, but if you're looking for a stock to hold forever, you really can't beat Coca-Cola. Just like those companies that have been around forever, great products, they keep selling their products. Coca-Cola, great dividend payer. That's something you might wanna consider. All right, I think that's it. Let's just look back the SPY real quick, S&P 500. Where are we converging on the 200 day and 20 day right here? I'd like to see it hold. Let's get some good news for next week and start to move higher again. All right, that's all for me today. Here, as far as the video goes, let's quickly take a look at our website real quick. Here's our website, smartoptionsell.com. You know that we're big on option selling, specifically put option selling, put option spread selling. Go to our website. Here's our put song basics, the free guide that I wrote. Put your name, email address in here. You'll get on our mailing list. We'll send you the free copy and then we'll tell you about anything else that's coming up in the future. All right, here's our services tab over here. We have our two newsletters and our coaching sessions if you ever want to take that next step up your game. Learn a little bit more about options trading. We can help. All right, that's all for me today. Glad to be back. Give me a thumbs up in this YouTube video. Subscribe if you want. You can hit that red subscribe button in the bottom right hand corner. Leave a comment, send me an email. I'll always try to answer. I love helping. I love helping you all. And that's about it. All right, that's all for the Sunday edition of the Saturday Synopsis. I will see you all back here next week and have a great trading week everyone. This is Lee Lowell signing off.