 Hey everybody here. We go now. How's everyone doing Lilo here smart option seller comm today Saturday June 25th 2022 getting to this last week of June a raise this this year seems to be flying by this month is flying by Everyone's out for the summer schools out got that Alice Cooper song schools out for the summer Enjoying this nice weather Wish this market would be a little bit better, but that's what we're here to do Welcome to our Saturday synopsis We look at the charts. I'm here doing these free youtube videos showing you what I've been seeing on the charts Been trading for 30 years and I like to give you some information on on how I Assess my trades when it's time to get in when it's time to get out. I'm a technical analyst. That means I'm a chart reader That's what I use to help me figure out Uh my trades. So let's jump right in as we do every Saturday and look at the charts We always start with the spy, which is the exchange traded fund for the sp 500 trades Just like a stock very liquid lots of volume. So it's a good indicator. It gives us a good idea of how the overall market is performing Uh, what you see in front of you is the actual charts that I use I mostly use a daily chart to give me a broader longer term view of what the market has been doing This is about two years on the screen here. I use a bar charts a daily Open high low close bars. I don't use candlesticks all that much because that's just never really what I was taught and what I learned I have three main indicators I have three moving averages. So I use a 20 day a 50 day and a 200 day simple moving average Those are up here And down here I use the rsi Which is an overbought oversold indicator just to give you an idea of when a market's getting a little overheated or a little oversold Uh, it doesn't always pinpoint the actual Turning point of of the market move But it just gives you a little bit of a warning sign that things are either overbought or oversold And on the rsi, it's a 14 day You can see over here 14 day and you get these two horizontal lines that That you can move up and down depending on your View the default is the 70 and 30 levels Uh, I moved those out to the 80 and 20 levels just to give me more of an idea of something's even more overbought or more oversold Uh, you know, so you can tweak it any way you want. So let's take a look at the market and see what's been going on Um, I was not here this past weekend didn't make a video. So where we were last the that Two weeks ago was we were coming off this nasty move, right? So here was last friday wasn't here last saturday. So the weekend before that we were up around here somewhere I had drawn this Bull flag pattern typically this is a bullish pattern right here He got the long flagpole and the pennant typically the market would move outside of this congestion pattern this triangle pattern To the upside considering that it was coming from the downside Congesting typically it would move to the upside in this case. We got the last two weeks had been pretty bad Uh, we had these big move down, you know, the fed came out with their their interest rate decision they raised by 75 basis points um, and you know Inflations came out the numbers came out inflation wise a little bit worse than expected So we had this nasty move down About two weeks ago. We had these two gaps right here. Here's a gap here and a gap here. The gap is when Uh, a stock or a market or an index opens up a lot further away from where it closed the day before So you can see here's where the market closed on this day And then it opened all the way down here So you have this gap here and then it did it again another gap here And the market just kept going down. So this was last friday um, uh, june 17th ended on the lows of the of the last, you know, five months or so This is a pretty big move. This is a pretty scary move a lot of people This is this has gone on for a decent amount of time It's causing a lot of angst a lot of anxiousness people are selling out of positions It's just a scary time considering that, you know The market just really just been going up up up up up So people aren't used to this especially newer traders I get emails from some younger traders and you know younger to me at least that are just starting out trading and Basically all they've known they started trading in the in the pandemic like early in 2020 Either they were out of a job and they just decided to start trading And then the market just kept going up. So they weren't Ready or they don't know how to prepare or or understand What happens when the market just goes down for a period of time and even for long-term investors This is not something that you want to see because it can affect your long-term portfolio me included I have stocks that I hold for the long-term positions that I held for the long term and this has not been fun um, so we we what we try to do is gauge where the market's going and so we had these gap moves right here And then we hit the low last friday What markets like to do is like they try they like to try to fill the gaps and by that I mean The market needs the reverse to close up the holes that are left from before And obviously the holes are going to get closed more into the future. So you can see this is where we traded yesterday friday June 24th right here this we had a nice big update yesterday And so it filled the this first gap So the space that was left here was covered by this trading yesterday June 24th The the gap was here and it completely closed the gap right here So the next thing that the market is probably gunning for is to try to close this gap up here Meaning the market has to rally it all the way up to at least this low point and that would close this hole here So The the consensus is the market wants to go up. I'm I I would like to see that as well But what's lurking here is this this blue 20 day moving average right here Let me open this up a little bit here so you can see it better Um, so the market could continue to go up next week. It has the momentum here So actually we got a little gap that's left here from thursday's trading into friday's trading So you can see this little hole here. So the market could certainly come back down and fill this gap So we've got a lot of we've got a lot of volatility going on here Right markets come down big everything everybody gets really scared and then we hit this this This point here where the market has turned on a dime. I mean Sometimes the market is erratic. Sometimes you can't figure out What why a market moves the way it does at certain points in time We had this big move down here. Then all of a sudden it bounces right here There is no rhyme or reason sometimes You know, it just depends on where the market Thinks that there's some value And this was last friday closed kind of near the lows and then uh, we had the long weekend We were off this past monday and then tuesday wednesday thursday We kind of traded in this range right here these three days and then friday yesterday. We had a big move up Big move up, you know, there's probably lots of profit taking, you know The sellers were in control here and they were just taking profits So there's a lot of things that could explain why a market will bounce or drop at certain points in time Anyway, so we may have some more momentum coming in Uh on monday, but we have this Down trending or down sloping 20 day moving averages blue line right here lurking above So the market may move up a little and then tag this thing and hit some resistance right here And it could drop again It's just it's hard. It's hard to say at this point because there's still a lot of a lot of news items out there That's causing the market to stay down. We have inflation. That's really bad interest rates are going up Covid still out there We got the war in ukraine. These are the headlines that have been that have been pulling the market down for the last few months And they're still out there But there's a point where the market comes up where there's value There's value in stocks stocks get a lot of a lot cheaper really good stocks So there's a value point where you'll find people start buying this thing back up So, um, where are we now? Well, we're still in this down trend and we're having these This could be just what's called a relief rally Where the market's just been sold so much that A rally has to happen at some point And this is what we get we get these snapback rallies and then we hit some resistance and then we start to sell off again And there's a there's going to be a point where a sell-off doesn't happen again where the market's just Content that it's come down far enough. It's time to move all the way back up And that'll take some time, of course because a lot of damage has been done on the downside I'm not completely convinced that the selling is over yet I'd like to see how it reacts if it comes and touches this down sloping 20 day moving average If it gets past that then the next goal is to close this gap and then hit along The down sloping 50 day moving average, which is up here So the market could get through the 20 day Close this gap and move up to the 50 day which could see some resistance and knock it back down So those are possible scenarios. There's no way to know What the actual moves are going to be now if we can get through the 50 day Then it's just going to start gunning for this 200 day moving average up here And that'd be a nice move all the way back up to about you know, depending how long it takes Into the 430 level Somewhere in this area here So up up up up up down up to here But it all depends how it reacts to the 20 day the 50 day Those are the first things that it has to get through close up these other gaps And we'll see maybe the bears don't want to give up control yet and they knock it back down So there's a lot of things to consider here Um, you know, there's there's no Right answer. No one has a crystal ball. So it's hard to Make a prediction all we can do is make guesses on where that we think the market Or how the market's going to react to certain spots certain support and resistance levels And we use these moving averages to help us the 20 day 50 day and 200 day moving averages are widely followed So a lot of people are looking for the same kind of responses And then if it could push through then it gets momentum from the other players and it keeps pushing it in that direction So for me, I'm hoping the market goes up. I want the market to go up. I have long bullish positions So we'd like to see it go up um the NASDAQ we look at by the triple cues And and and the NASDAQ and the and the S&P 500 were are now or were considered to be in Um, a bear market, which is a 20% move from a recent high all the way down to a recent low So the NASDAQ's got hit pretty hard Um harder than the Dow and harder than the S&P 500 So here's the NASDAQ same pattern, you know, we had the nice relief bounce this past week Came up to now the NASDAQ moved a little bit better It's come up to resistance right on this 20 day moving average. You can see basically it closed just above it On yesterday friday june 24th. So this is the the NASDAQ came upon the 20 day moving average close this gap here Gunning to close this gap up here. So it's going to have to move up the SPY Hasn't hit the 20 day moving average yet. So that's its next goal We can look at the Dow Jones represented by the the dia the diamonds Um, everything looks the same two gaps one here one here and the the V shape bounce here Hasn't hit the the 20 day moving average yet. So it looks similar to the SPY. So this is the Dow And the cues usually lead the way The triple cues has now hit the 20 day moving average. So the next spot is the downsloping 50 day moving average And it could would be able to close the second gap here. So, you know, for next week, I'm probably looking for we see a little Follow-through momentum to the upside And for at least the NASDAQ the 50 day moving average is the next landing spot and for the S&P 500 and the Dow It's the They have to get through their 20 days the 20 day moving average first And then the 50 day is lurking above. All right, so Let's see someone momentum come through next week and see how they react once they connect with the moving average Let's look at some individual stocks as we typically do We look at the popular stocks Because that's what most people like to to look at and that's what they like to trade So we look at apple. Here's apple And and the charts of the individual stocks will look somewhat similar to the indexes now apple you can see a gap here gap here So it had filled this gap and it's almost filled the secondary gap right here We had drawn this line here this support area, which is right around 140 dollars a share Came down below it and now has popped back above it. You can see yesterday. Here's friday june 24th This one day is worth of trading right here. So it came back above the 140 resistance And it has moved above the 20 day moving average, which is the blue line here You can see on the right side of the bar. It's this little teeny dash mark that tells you where the stock closed for the day So closed above resistance and it closed above the 20 day moving average So it seems to be the 140 level is that area for apple that seems to be a magnet And what we really want is for it to now The 140 level becomes support Once it dropped through it, then it became resistance. Now it's moved through it again Now it becomes support It's just a way of looking at Um a price level that seems to have been a magnet in the past Okay, so let's hope the 140 level holds for apple and it starts to shoot up It's got the 50 day moving average right here as the next Line in the sand just below 150 dollars a share. So if we can get some momentum and follow through next week You know 150 dollars would be a nice Next spot for apple to shoot for Let's look at Tesla We've been talking for a long time. This 700 level has been a real magnet For tesla It drops below it drops above it drops below it drops above it So 700 seems to be that area where In the reason past the bulls and bears just can't seem to get away from You know as we you can see we drew backwards 700 seem to be that level And it's really having a hard time at figuring out, you know where it wants to go You can kind of see this maybe as a double bottom A double bottom is a pattern where You know a market or stock will come down It'll pop up and it will come back down to that same little area. So let's draw This here and just use this For the upcoming videos that we make and see if the double bottom holds a double bottom is more of a bullish pattern Comes down once comes down twice and bounces and continues on its way. Sometimes it can make a triple bottom So we'll see we'll see if the market gets momentum then right here the 50 day moving average Around $791 a share is the next landing spot for tesla But it's been hovering around this 700 level. So we want to see, you know, where it will go What else let's look at microsoft Sometimes we look at microsoft sometimes we don't This is textbook right here came down. You had the two gaps gap here Gap here and then the bounce went through the 20 day and finished yesterday right on this 50 day moving average These moving averages act like magnets. It's just it's just how it works So you can see stretch it out a little. I mean it closed right on the 50 day moving average But microsoft just like the index has been coming down for the last, you know, five ish months or so And it's hard. It's hard to be in that situation now. We can we can redraw these Channels channels help you to see which way the markets move in which way the price action is going You can see here We had this channel that we drew and channel is just a a range where a market has been trending in and since December, january You can see that It's been in sort of a range. Okay You know, it's not an exact science. It's just a a visual to help you see where a stock or index has been trading within Okay, you kind of connect some of the tops you connect some of the bottoms and it gives you this channel So it's sort of right in the middle of the channel It could move all the way up to here and then possibly bounce back down until it breaks out Convincingly in one way or the other then it should continue on in that direction My hope of course is that it goes up Passes through the down trending line and continues on its merry way All right, we look at amd It's a favorite of mine Uh, obviously like microsoft has been in this down trending channel We have drawn some of these lines to show where areas of support are Uh, 85 dollars was one area support and then down here in the low 70s is the next level line in the sand here It's kind of finding its way around the 85 level right here And it closed yesterday Around 87 dollars had a pretty good day On friday june 24th. So amd trying to find its footing here, right, you know around the 85 level I like to see it go up because i'm long amd and we have bullish positions in our newsletters We have we sell some puts we sell put spreads. Those are bullish Positions so we want the market to go back up and even going sideways is okay as an option seller Option selling you just want the option price to decay and if a market goes sideways That's just as good as as the stock going up when you sell puts or you sell put option spreads You want the market to either sit still or go up So this has not been bad for us I'd like to see it go up, but moving sideways is just as good. All right, so that's amd Let's look at some of these bigger stocks or some of these more name brand stocks. We look at walmart 2 walmart Just taking a deep dive Deep dive. I bought some down near the bottoms because It typically walmart does not make such a dramatic move like that You can see how oversold it got on the rsi. This is a big move. This is a big oversold move for a stock Company like walmart. So I nibbled some here in the bottom nibble a little bit more here Around the 120 level I'm a long-term holder of walmart Biggest physical retailer on the planet um I don't think you can go wrong with walmart in the long run. So that's why i'm nibbling on the bottom That's me. I think in the long run walmart's going to go up And that's what I do uh disney same thing. So you're looking at these name brand companies disney has just kept look at this Stare stepping down Um, this is low like I bought some disney around the 130 level nibbled on a little bit more around 120 But it's kept dropping. So i'm holding off for now. I know disney is going to Rebound in the long run But for now the market doesn't like it so much And I've I've decided to kind of hold off now On buying some disney, but in the long run Let's look at the monthly Long run Goes up over time The covet low was right around 80 dollars a share Right here was the covet low March of 2020 And it went all the way up to 200 and has now fallen all the way back down It's lost 50 of its value In the last year or so That's a big move for a company like disney So, you know, I've nibbled a little bit waiting for the move back up. I'll have to buy my time here Nike Another stalwart another huge name brand just Moving down You know at some point value will come into play And and the stocks will have to go up Because these are companies these are not companies that are going bankrupt These are not companies that sell horrible items horrible products These are companies that have been around a long long time that make quality products and eventually The value of that company brand Will be decided that it's gotten too cheap. It has to go back up So if you have dry powder And I tell this to my newsletter readers if you have dry powder, which means you have some cash Some disposable cash that you can put or allocate into the market Find some of your favorite stocks stocks. You've been watching and nibble a little bit You know that eventually these stocks are going to go up because these are not companies that are going out of business They sell products that people buy and then quarter after quarter They have profits that are increasing if you have a company that's increasing products quarter after quarter The stock is eventually going to go back up These stocks are just getting hit along with everything else in the market So you have to understand where value is and what companies are worth buying and holding sure you have to sit through some pain That's how the market works We're not always going to be in an up market Sometimes markets go down And you have to hold through or if you can't hold through then you have to lighten up on your positions It's all depends on your personal situation. I can't tell you individually what to do But I can tell you what I've been doing and I've been buying nibbling on the way down waiting for the turnaround Okay, so let's take a look Let's see our list here. All right, so let's look at amazon netflix Amazon we know they they split their shares Um came down may have hit, you know potential triple bottom action here. Let's draw the line Right here. Okay, so we got some support here Right around just above the 100 level for amazon One two Possible triple bottom here You got a little bit of a rounding bottom. So maybe amazon's hit the bottom Um, this seems to be a line of support right here Uh, but it still has a decent way to go to get back up to its all-time highs um But you know pay attention to the 100 level on amazon Uh, what else netflix we want to take a look at I mean netflix had you know has just a horrible looking chart too since last november Huge gap here from earnings huge gap here from earnings and now it seems to be possibly finding its bottom here Right above the 150 level so we can kind of draw a line here support line You know just drawing these lines helps you have a visual of where some support is where some resistance is Um netflix is kind of chugging along at the bottom here Has the the 50 day moving average lurking above right around the 200 level So keep an eye on that if it can break that then it's got some clear sailing But these last the last two earnings announcements have been pretty bad You can see these huge gaps. So these gaps have not been filled yet a long way to go to fill these gaps for netflix Um, but it seems to be maybe right around 155 160. It's fine finding a potential bottom Uh, what else we have? Uh proctor and gamble Had it had a nice v bounce. Let's see. What else we got some of the the The healthcare stocks had a good a good week bounced up Pfizer murk and Eli lily bmy we had a position in the xlv, which is the healthcare etf We had to get out because it Dropped pretty hard and knocked us out or out of our position. Unfortunately and now has bounced back murphy's law I mean it just happened as soon as you get out it reverses back in the direction that you want it to go Sometimes it happens happens to the best of us even It's unfortunate It snapped back really good too really hard a little upset about that, but sometimes that's just what the market does um But I do still like the xlv healthcare is here to stay Investing in some of these bigger pharma companies murk johnson and johnson fiser bristol mires Um, they're they're here to stay the xlv. You can get all of them in one shot. Let's see. What else? Costco pretty volatile big moves down little bounce Let's look at a paypal paypal and square we I always talk about the the online payment companies paypal just Just this has been rough. This has been rough. Is it finding a bottom here yet? Around 70 dollars a share may be the bottom, but it's got a lot to make up for It's got the 50 day moving average lurking right here I'm surprised at how hard Paypal and square have gotten hit here's square Um, just you know just getting crushed went below 60 dollars a share last week so um Some of these stocks has got hit really hard Um, where have they found value? Have they found a bottom yet? Hard to say. I do like paypal though. Um, you know, we've had position We were able to get out and um, but It's gotten really cheap Really cheap. I really don't have a uh a thought on this right now I mean in the long run. I like the online payment space, but this They've just been getting hit a little bit too hard for my liking Um, let's see mcdonalds still hanging around pepsi. Oh, let's look at coca cola I'm a big fan of coca cola. Uh, I like it as a company itself. I don't really drink The product because I don't I don't drink sodas or pop or whatever you want to call them But the company itself is great great great dividend dividend achiever Um, just a stalwart just goes up over time It's a slow mover, but the dividend helps and it's a boring slow moving stock, but you you really can't go wrong Uh, it it bounced right here on its 200 day moving average. Here's the line. So right in between You know, fifth right under 60 dollars It bounced pretty good right off the 200 day moving average and has bounced back good Bounced back about four or five dollars a share and here's where it closed yesterday right around 63 dollars. So coke Good good one there if you'd gotten in what else we have Let's see Here's worn buffett stock berkshire got hit pretty hard Uh, has it found a bottom tagged the 20 level on the rsi Let's see if this is a good a good point to get in for those of you interested on my website I have the the worn buffett report that I wrote about an option training strategy where you can piggyback him for real cheap You can go on our website and take a look for that report Um got hit pretty hard. So is is berkshire finding some value here? Now you can't you know worn buffett. He's uh Over the years. He's done quite well We're 200 billion dollars or so So you you know following him cannot be such a bad thing and when his Fund gets hit You know open your eyes a little bit. It may be worth Nibbling on some shares down here if you like worn buffett Let's see what else we have and then we're going to wrap this up twitter Still hanging around still undecided what's happening with twitter Is the deal going to go through elan musk buying twitter? Don't know just don't know yet. Um here This is facebook, but let's Put the new symbol in meta There we go. Um hanging around the lows Was that 380 and now got down to 160 finish yesterday at 170 meta I don't have much thoughts. I was never really a big facebook fan as far as the stock goes But it really hasn't done that great over the last few months ibm Yeah, ibm is doing okay google Hanging around got hit somewhat, but but had a good day yesterday up 114 dollars a share Game stop amc I don't really track these too much Because but I just keep them in here chewy is a little interesting to me I think chewy may have found a bottom here at this nice rounded bottom And has now popped back above The line with that we had drawn in the past So got above let's see this probably you know 37 36 37 dollars was he's tagged it once twice three times finally got through it But now it's popped back above it. So chewy could be interesting bullish wise Next thing going to be gunning for the 200 day moving average right here right around 50 dollars a share So I can see chewy potentially It's worked its way pretty good. So maybe it wants to shoot for the 50 dollar level So keep an eye on chewy and see where that one goes. All right, I think that's about it for now Nothing else really popping out to me Clorox has had a nice rebound Colgate Has a pretty good rebound these are these are the companies that in good times and bad you got Colgate Procter and Gamble I mean these are products that they they they make products that people need for their everyday needs Some people will call them recession proof You know they get hit too, but they when they bounce they bounce back pretty good. Here's Procter and Gamble Colgate You can see They're just incredible bounce Like it just it makes up all the down move it had in just a couple days So Anyway, keep an eye on some of those stocks. All right, so that's it for the assessment. Let's look at the SPY one more time See what's going to happen next week potentially So we had the nice v bounce here v bounces when it makes a shape like a v comes down hard and then bounces hard So it looks like a v We're gonna probably have some momentum Following through on monday since we finished so strong Yesterday friday, but watch the 20 day moving average lurking up here If you can get through that then it's the 50 day moving average up here. All right. I want to see it go up I'm a bull In the long run All right, so let's go to our website real quick And show you what we do We sell put options. We sell put option credit spreads. That's what we do We have our two newsletters right here our services tab two newsletters And we have our coaching services If you need help if you want to talk to to me about how to learn to trade options Just get yourself to that next level. We have our one-on-one coaching if you want a copy of our put selling basics This is a report ebook that I wrote Free that you can get for free on our website about what selling put options are why it's such a great strategy And why we love it. So go to our website put selling basics Put your name and address in the box here We send you an email. It has a downloadable link within that email for the report All right So that's it for me today. I hope this video has been helpful. Give me a thumbs up leave me a comment Send me an email. I always answer your emails can't give personal investment advice So please try to refrain from from asking those kinds of questions Anything options related I can answer. All right. I hope everyone has a Good weekend and a great trading week ahead and I will see you here next Saturday. This is lee lowell signing off