 Hey everyone, Lee Lowell here from smartoptioncell.com. Today is Saturday, January 7th, 2023. Welcome to a new year, 2023. I hope everyone had a great holiday season, got rid of 2022, starting anew. I'm so excited to be here starting another year. It is, I'm going into my seventh year now starting the smartoptioncell.com franchise. So I'm really excited about that. Got some new things ahead in 2023, but I'm glad you're here today. Welcome back to our longtime viewers and welcome to our new viewers. What do we do here at the Saturday Synopsys is what we call our Saturday free YouTube videos. I'm here to show you the charts. It's all about the charts. We're option traders. So whether you're an option trader or a stock trader, what I've found over my 30 plus years in the business is the best way to have profitability in your trading is to look at the charts and see what the charts are telling you and try to figure out which way the charts may or may not go. That's what I've been doing for 30 plus years. So I make these free videos on Saturday to help up your game, whether that's option trading, stock trading, whatever. And specifically for option traders, you can't just trade options just to trade options. You have to trade, it's based on the underlying security. So if you have no clue where the underlying security is or where it may go to, then you have no business trading options. So for me, you have to take that extra step, learn how to look at the charts. So that's what we do here, Saturday Synopsys, try to figure out where the market's going, where stocks are going and let's just jump right in and get 2023 going on a good footing here. So what do we do at the Saturday Synopsys? For those that are new, we look at charts and we always start with the S&P 500. We use the SPY as our proxy. It's the exchange traded fund. Up here in this, this panel is the price action of the charts, of the market action down here is one of the indicators that I use. We do things simple here. We're not all about bells and whistles. We're old school. So we look at the price action, couple indicators, keep it simple, stupid, the KISS method. So what do you see up here? Well, besides these vertical lines here, which represent one day's worth of trading, these are daily bar charts, open, high, low, close, bars, not candlesticks. And these other lines you see here, blue lines, red lines, are my three moving average lines that I use. I got a 200 day, a 50 day, and a 20 day, all simple moving averages that show you which way prices have been trending. And down here, we have the RSI indicator 14 day look back period based on closing prices. And it's an oscillator. And it oscillates between overbought and oversold levels. A lot of time, it centers around the 50 level. We use the 80 level up top and the 20 level down below to give us an idea of whether something's getting into overbought or oversold levels. And we watch the price action at the same time to see how it reacts to those levels, along with the moving averages. And then we can decide whether it's time to get in or out of a trade. And that's how we do it. Now you may watch other videos that show you all different kinds of indicators. And you might think that, well, the more indicators you have on your chart, the better. You would think that, but then your chart just becomes so jumbled and you can't see the price action that I don't believe that. I believed that long ago, but now over the 30 years, this is the charts that I've cultivated and this is what helps me figure out where a stock's going to go. So let's talk about, let's just jump right in and talk about where the general market's going and then we'll dial down to some individual stocks. So the S&P 500, which I believe is the best gauge of the overall market, has been in a downtrend since January 1st, 2022. If you've been watching my videos during the year, you know, we've been stuck in this long downtrend. It has been one year in the making, this long downtrend prior to that as we pull back to earlier times, we can see the market had a nice uptrend. When you look at charts, if you were looking for bullish action, you want to see the charts go from bottom left to top right. That shows you that a stock or a market is in a nice bullish uptrend. That's what you want to see. You know, back in 2020, when COVID hit, here's the lows that we hit in March 2020 and up to that point or after that point, the market had gone on a nice rally, rally till we hit January 1st, 2022. And we've been in this downtrend since. Now it's a big downtrend. And these blue lines that you see here, these blue lines are lines that I've drawn. I consider strong channels. You can see these channels are one of the greatest ways to just visualize which way the price action is going, which way the market is trending. You can see this nice, narrow channel here after COVID, the market was in that nice uptrend. Once we hit January 1st, 2022, been in a downtrend, wide downtrend. And you can see, based on these other channels, the market will go up and down within the larger channel. So you have to understand, what's your timeframe? Are you a short-term trader or a long-term trader? We're longer-term traders. In our newsletters, we are a couple months out in time for our option trades. So we pull back to a larger, longer timeframe, which is the daily timeframe. Now, if you're a hyper-entry trader, you may look at the one-minute charts or the five-minute charts. And that's fine if you figured out a way how to do that. But we're looking at longer timeframe. So the longer timeframe, we've been in this downtrend, and you can see the channels within that longer downturn will have big up moves and then big down moves and then big up moves again. So where are we now? Well, right now, we're in this little section right here. The last two weeks has been this tight little channel here since the middle of December until now. We've been kind of stuck trading right around the 380 level on the SPY. You can see right here, it's 380. So we've been up and down that between maybe a 375 to 390 range right here. And this was the spot right here where I thought we were going to get going. We had hit 410 on the SPY. It popped out of the channel this one day right here. I thought we were gonna get going until Jerome Powell, who's the chairman of the Federal Reserve here in the US, spoiled the party and said that, no, we're going to keep raising interest rates. We're gonna keep trying to be aggressive to get rid of this inflation that we're seeing. And that spoiled the party and put us on this down move. And now we're kind of sideways section here. So what's happening? What's going to get us out of this range here? Well, yesterday, Friday, January 6th, we had the unemployment, the last unemployment figures for 2022, we had this move yesterday, Friday, January 6th, one day move up, we had a nice up move. So the report came out yesterday, unemployment report. More jobs were created in the United States than were thought that were predicted. But the thing that rallied the market was the wage growth in the United States. Wage growth is how strongly wages are moving up. And they did move up from last month, but they moved down since, they didn't move as up as much since one year ago at this time. So the market took that as a gauge of, okay, things are slowing down because if wages are growing, that means people have more money and they can just keep spending on things and that'll keep driving inflation. And then the Fed's gonna have to keep raising interest rates even more. But if we have a little pullback in wage growth, that means people have a little less money to spend. So they won't go out and just keep buying stuff. So inflation will probably start to ease off. And that's what the Fed is looking for. They wanna see this wage growth coming down. They wanna see inflation coming down. So they won't be as aggressive in raising their interest rates. So the market takes that as a good sign. And that's why we rallied yesterday. Friday, January 6th had this nice move up. Well, where do we go from here? Well, a lot of these rallies have been sold of late. So is this just a one day thing? And it's gonna get sold off? Or is it the start of something new in 2023? Are we gonna get going and start to move higher and get rid of this, get out of this downtrend for good? Well, you know, there's no guarantees, but what we saw here is we have the 390 level on the SPY. This blue line here that I've drawn has been on the chart for a long time. The 390 level is critical right now. On the way down, it had acted as support back here in the summer, it bounced off the 390 level. And then when it came down, it got through the 90 level down here, went back up through it again. So you can see the activity right at 390 for a couple of days here. We got some activity here, got some activity here. So it takes a little while for it to either break through or get above it. So it went above it nicely. And when it came back down again, you see the activity here and then it blasts through. So this level, 390 is very critical here. You can see we just finished below that yesterday, Friday, January 6th. So next week is going to be telling whether we can pop through that 390 level, which will then you have the top edge of the downtrending channel as the next level of resistance. So if we can get through 390 here, then we pop up to this edge, wherever that may be between 395 and 400, you can see the numbers over here. It'll be telling if we can get through this top edge of the channel and then continue higher. Well, the next catalyst could be fourth quarter earnings reports, which start to come out roughly the third week of January, going for a couple of weeks beyond that. And so if the earnings are good, if the earnings start coming out and they're good, I believe we have a pretty good chance that we'll get through this top edge of the channel on the SPY, the SP500. And the other index is the NASDAQ and the Dow Jones, which we'll look at. And if we can get through this top edge here, we're off to the races. And hopefully we can make that move for the all-time highs on the, you know, the SP500, which was right, an end of last year, right around $480 on the SPY. So that's the way that the SPY is looking, SP500. We have this 390 level that is our current resistance. We close at 388. So it's only $2 higher. Like to see it get through that and make the move to the top edge of the channel. Let's look at the NASDAQ. We always like to look at the indexes first because, you know, this is what a lot of big money focuses on. It helps drive the market. So the NASDAQ, as we know, was the weakest in 2022 of all three indexes. The Dow, I mean, the SP500 was down between 19 and 20%. In 2022, the NASDAQ was between 25 and 30% down for the year. And the Dow was the least weakest. I'm not sure what the percentage was, but it was the strongest out of the three. You can see the NASDAQ here had the nice pop yesterday. This is one day. This is the one day yesterday. And you can see, you know, 260 level I have drawn on the chart for a while. Maybe we can extend the line a little bit here. Let's extend this line right around 360 and keep using that as our support area. You can see a number of times it's tried to break through 360, I'm sorry, 260, can't get through it. So let's hope that this was the bounce. This has been the bottom. You can see going back a number of times, 260 really has been that support. And we like to use closing prices. You can see here, the market had gone through the 260 level, but it didn't close down there. Okay, the closing price on the charts, you can see there's a little teeny dash mark on the right side of each bar that signifies where a market closes for the day or where a stock closes for the day. And the closing prices are very important because it can tell you where the momentum is headed into the end of the day and possibly into the next day. So you can see here, market closed up, bounced off the support of 260. So let's hope the NASDAQ gets its act and gear and, you know, start to move higher. I don't have the long-term downtrend, but, you know, you can do this on your own charts. You know, you take points of the highs and you just kind of connect some of the highs. It's not a science. You know, it's a little bit more art than science. And you can draw, you know, connect some of the bottom lines, you know, even that one not drawn so well. But we wanna connect some of these bottoms here and, you know, give us the channel. It's kind of a wide channel. And so the NASDAQ been pretty weak. We've got the support here and let's see if that'll drive higher. Let's look at the, the Dow. And let me move myself over here. So you can see the chart symbols, DIA, okay? DIA, that's the ETF that signifies the Dow Jones and Dushel's. And you can see how strong the Dow has been this year. Let's go back to where it was January last year. So obviously, you know, prices were higher here, finished lower, here's where we ended for the year, came down, but the Dow has been pretty strong. And we'd gotten above this resistance here, had the nice V bottom here. You can see the V bottom. We can also draw, you know, the other channel here. This is the up channel just to give you more visual of what's happening. And it's almost the W pattern that I like to talk a lot about. This is a long making W pattern. You can see the W. And once it gets above the middle part of the W, that's typically where if it can break the middle part on this leg of the, break the top here, it will usually go. It will usually keep going. It started to get it right here, but it fell back when, you know, Jerome Powell was a party pooper that day. So, but it looks like it wants to try once again. You know, had a good day yesterday. Here's the level. Right around 345, maybe 347 or so on the DIA that it needs to get through to blast higher. Now here's all time highs. So we really don't have that much further to go. So the Dow was definitely the strongest of the three in 2022, maybe it can help lead into 2023. All right, so that's the indexes. Let's take a look at some individual charts and see what's going on. But before that, before we do that, I want to talk a little bit about our options trading. You know, in the smart option seller, we are all about option selling and our main gigs are selling naked put options and put option credit spreads. So I want everyone to go to our website, smartoptionseller.com. If you have not gotten a free copy yet of our put selling basics ebook, please go to our website and click on the put selling basics header here. And you can read about why we love put selling so much, why it's our main gig and why it's such a great strategy. Put your name and email address in here. Well, you'll get an email from us with a link to download the free put selling basics ebook right here. And just to tell you, even with the download and it is a bullish, it is a more bullish to neutral type of strategy. Now in 2022 with the down market, we had the least amount of positions that we've ever taken since, you know, in the seven years that we've been running this newsletter. But the good thing is that we had 100% winners in 2022, meaning all of our trades were successful. Even in a down market and we were taking bullish to neutral type of directional trades with puts on, we're able to achieve a 100% win rate. So that's just a testament to how great the strategy is even in a falling market. So do yourself a favor, go to our website, sign up for the free put selling basics ebook. And then after that, take a look at our services here. We have our two newsletters, smart option selling newsletter and vertical spread trader newsletter. Those are our two newsletters and our one-on-one coaching, if you wanna get a leg up or you need help with your options trading, you know, think about setting up a session with us, okay? So that's what we do. Please get a copy. Let's go back to the charts and see what we have. Here's my setup, got the list of stocks, a lot of the stocks that I look at on a daily basis, all I'm doing throughout the week, just running through my charts, seeing if any stocks are making setups that have, you know, a potential of a bullish strategy that we can jump into new trades for in our newsletters. So what do we do? We look through the list, just it's manual labor. That's what you have to do. You have to look at charts and see what they're doing. So let's start with some of the biggies. We always start with the most popular stocks, first one being Apple, okay? Apple is been not a fun stock of late. We have a position in our put spread newsletter that we're just waiting for it to expire. We're waiting for the prices of the options to come down. Now Apple, you can see has been down, up, down, just like a lot of other stocks. So it's been sort of in this wide sideways range. And just recently, just this past week or two, it had fallen below the last line of support that I had drawn on the charts, the 130 level. Apple has been such a party pooper of late and it also drives the market. The reason why I say that is because Apple takes up a big part of the indexes that it's part of, either the S&P 500 or the NASDAQ. You know, these are weighted indexes, meaning these big stocks have more weight and have more pull. So when these stocks move, I'm talking to biggies like Amazon and Apple and Google and Facebook, whatever, when those stocks move, the indexes themselves move because all the other stocks within the index aren't weighted equally. So we want these biggie tech stocks to move in the right direction and that's bullish for people like us who are bullish in nature. And I have long-term bullish positions on Apple, so I want to see this thing to go up also. But it fell through the 130 level, which was really the last line of defense. So it had been trading between 130 and 125, just these last few trading days. And yesterday along with the unemployment numbers, Apple rallied at one point over $5 a share during the day, got back up to the 130 level, you can see just a little bit popped above the 130 level. You can see the top of the bar here. And close at 129.62. So Apple had a bounce, had come down a long way in just the last few weeks. It was up around 150 and it has fallen a good $25 a share from 150 all the way down to 125 rather quickly. And so we have our put spread on or put credit spread on Apple, meaning we wanted the stock to go up. We really don't want it to fall that far that fast. So we took a little heat on it, but it expires in two weeks in the January expiration and this $5 up move today did wonders for our positions. So we're just waiting to see what happens. Our strike prices are still down here. We always take a lot of cushion with our strike prices, but when Apple falls $25 a share very quickly, the option prices will jump up pretty good for put options. So anyway, we're waiting for that to turn around. So Apple just not doing so well, just been in this downtrend just like everything else, but it's also pulling the market, one of the big stocks that have been pulling the market down. We wanna see it get back above this 130 level. If it bounces off the resistance and starts to drop again, that could spell some trouble for the market. So we don't wanna see that. Where would be the next line of support all the way back here that I drew, which is in the low 120s range? So if you just kind of slide over, you can see we've got a little cushion, but low 120s is the next area of support for Apple. We wanna see it go higher, bullish. If you're playing short, then you're doing great, but we're bullish here, we wanna see it go up. So that's Apple. Let's look at Tesla. I get a lot of requests for certain stocks to look at and a lot of them all are the same stocks. Tesla just been pounded the last two months or so had fallen through this long time support level here that I had drawn. That's no longer the case. We'll keep it on there for now because if Tesla starts to rally back up again, we'll see if it acts as resistance on the way up. But did it touch $100 a share? Let's see what the low was. Low was about $103, am I seeing that right? Let me look at my numbers here. The low on the day was, no, 101.81. So we almost hit the 100 level on Tesla. Hasn't been that low in a while. Let's go, let's look at the weekly chart here. This is a weekly chart on a weekly timeframe. So each bar is one week's worth of trading. So it gets to go back much further in time till sometime in 2015 all the way back here. But the 100 level hasn't been hit since the summer of 2020. Right here, you kind of scroll back to see where the last time it was around $100 a share. And this was in the summer of 2020. And from that point, it just rallied higher. So is the 100 level support? Well, let's draw, we can draw a line here. We can draw a support line right at $100 and see if it'll stick. See if it'll hold. We'll come back to it next week when we look at these charts. Here's the 100 level. Will it hold or will Tesla keep going through? Why has Tesla been going down so much? You know, we don't have a stake in Tesla. I don't like to trade Tesla because it's so, it's so erratic. You know, Elon Musk is, you don't know what the guy's doing. Okay, he took over Twitter. He fired half the company. They're bleeding money. Advertisers have left. Who knows if Twitter is gonna stay around? So he's had to sell shares of stock. I don't know if he had to sell shares of stock to keep Twitter afloat, but obviously there's been a lot of selling. So Tesla going down 100 maybe a short term stop here. It could keep going or it could bounce. Hard to say. Tesla's one of those outlier stocks for me where I just can't get a handle on it. I can't make a good call on it because it's too erratic. It's too, there's too much going on. When there's a lot of issues with management or the perceived issues of management of a company, it's hard to trade the stock because you don't know what those guys are doing behind the scenes. So we stick to stocks that are a little bit more stable, you know, long time quality companies. And that's what we do. So let's look through our list here. Let's go look at Microsoft. Now another big tech stock is Microsoft. God hit pretty good just in the last couple of weeks had been in this downtrend here. You can see the channel, but you can see here has just kind of taken a beating. Hit $260 a share and has fallen a good $40 since then back down in this channel here. So, you know, Microsoft been going down. Everyone loves Microsoft too. I think it's a great company, but for now it's still stuck in this downtrend. So you got to watch the way the markets are moving. The stocks are moving. If you want to be bullish on a stock, it's hard to, you know, take a position while it's still going down. The key is to wait for it or to look for, you know, a nice little uptrend. Now here we had a nice little uptrend. You could have taken a short-term trade, you know, a month or two and gotten out. But if you're a long, long-term player, you can either wait these things out or just hold and, you know, wait for their turnaround. But, you know, as a bull, you're going to be holding something that's just going down, down, down. So Microsoft looking weak at the moment, you know, we're not really in oversold areas yet. So we're taking a pass on Microsoft right now. Nike, we talked about Nike in the past, had this power move higher, great, had some great earnings right here. And you can see the gap higher. And Nike's just, you know, you can't hold these quality stocks down for too long. Nike made a low here, right above 80, got into close to oversold levels and has just been going up since. And trading right along the top edge of the uptrending channel. Now, if you're waiting to get into Nike, if you say I want to get into Nike, I want to buy some shares, you know, you can wait, it's just topping right on the top edge of the channel here. Maybe wait for it to have a little bit of a pullback. Maybe it can pull back to the, this is the 20-day moving average right here, the middle line. And maybe it'll pull back, give people a chance to get in again before it starts to run higher. So I'm keeping an eye on Nike. I love the company. I'm waiting for a little pullback as well. So I'm keeping an eye on Nike. AMD, we always talk about, we have to talk about the chip stocks, computer chip stocks, because that's what drives the world these days, computers. And I've been really surprised at how weak these chip stocks have been all year long. And, you know, it's still, you know, nothing's really happening, kind of in the sideways channel here, $60 seems to be, you know, high 50s, low 60s seems to be support at the moment. Let's draw a little line here and see if it could maintain some support on that level. I'm always keeping an eye on AMD because, you know, once AMD runs, the other chip stocks will run as well. Let's look at Micron. You know, this is Micron. Here, I moved myself here. MU is the symbol. Also, same thing, just kind of sideways. Maybe trying to find that bottom just below 50. Let's draw a support line. You know, you want to connect some bottoms. That's how you look for tops and bottoms. You know, $48, maybe the low here. And it's, you know, trying to bounce, possibly showing a W pattern here. If you can visualize a W pattern, it's got a little ways to go to break the peak here. But, you know, that's Micron. Nvidia is the other big chip stock. Also, same thing. You can see the downtrend. Had the nice up channel, Jerome Powell spoiled the party and knocked it back down. Got the sideways action. Looks a lot like the S&P 500 downtrend and had the upswing, but then got knocked back down. So chip stocks, still waiting for those to get going. Let's look at some stocks that are moving up. We talk about Pepsi, Pepsi Cola. Look how nicely this stock has been in the uptrend. Bottom left, top right. It has the fits and starts, but still overall uptrending chart. If you want a long-term, a long-term great dividend paying company, you look to a stock like Pepsi, okay? Nice uptrending chart compared to the general markets where I've been showing you top left to bottom right. That's everything's been trending downwards. Pepsi bucking the trend going up. Coca-Cola, almost the same. Bottom left, top right over the course of the year. Had been moving up, had some activity here, pulled back. This is where I bought some shares. Had to get in on the low. Coke and Pepsi, such quality dividend paying companies. When it gets oversold like this, you have to take notice and it's had a nice run-up since then. Disney, we look at. Disney, still kind of scraping along the lows. How long are you gonna hold Disney down for? $80, I guess we drew this line. Let's go back to the monthly chart. Let's go to the weekly chart. So the COVID low, March 2020, was right around $80 a share. Even going back a little further in time, $80 seemed to be this long-term support area for Disney. I'm waiting to see if it pulls back to the 80 level, just to grab a few shares, see if it'll hold at the 80 level. All-time high was just above 200. So it's pulled back quite a bit. That's a pretty decent pullback, a good pullback for a quality company like Disney. This is the weekly chart, even though it says daily up here. Here's the daily chart, you know, just down, down, down, down, down. Maybe finding support just above 80, we'll see. But I'm keeping an eye on Disney as well. I'm always looking for these charts where we can get in for our newsletter and we wanna get into more neutral to bullish trades. Okay, we looked at Tesla. Oracle, another company that I like. I like the pattern that it's showing me. Well, what pattern is that? I like the uptrend here and the support, finding support right around $80 a share. I wanna draw this move, take this line out and kind of draw right around $80, okay? So I like Oracle, I like how it's, you know, bounced off the support and started to make this new high here. Okay, so we had the uptrending with the flat top got through it. So we can also possibly make another, let me get rid of this. And actually you can see the W right here. Here's the W, small W. When Ws happen on the lows, near the lows of a stock move, when you see a W happening, that's a pretty good sign that you can possibly take a nice bullish trade. Once it got through the middle here, got above that middle line, it started to move up. So keep an eye on your chart for these W patterns. But I also like here is, let's drop, we had the uptrend and we had like the flat top here. We can also draw like another line right here. So Oracle getting through the triangular up, you know, it's called ascending triangle and it's blasting through this line here. So I think Oracle, you know, maybe if it gets a little pullback, I'm gonna have to seriously consider taking a look at trade on Oracle. Net, let's look at Amazon, look at the biggies. Amazon scraping along the lows, you know, low 80s, we've had these lines, these long-term lines drawn on the chart had fallen through this one. This was the low 100s. You can see all the support that it had over here. So that became that area of support where there's a lot of activity on the bottoms where it can't get through, that becomes support. So you draw that line, it bounced, it came back down again. So we're looking at this 102 level as support. It tried to stay above it, got down below, tried to hit it again and it got knocked back down. So for now, 102 is gonna be resistance. Support right now, low to mid-80s right here. And if we go back, let's look at the weekly chart to see where the support was, okay? So we had to go back to the weekly, $80 seems to be that last area of major congestion, low 80s. So that's how you find your next area of support. Okay, sometimes you have to go back to longer timeframes. You know, it's flirting with it right here. It got below, but didn't close below it. If it gets through 80, then that next area of support is this guy right here. This week, the low was, looks like 65 or so, right here. So if Amazon drops, it's gonna be gunning for this level right here. Hope not, we're bullish, we wanna stay bullish. Let's go back to the list here, see what else we got. Oh, Netflix. I kinda like the way Netflix is looking here. It spent a lot of time on its lows and it's just slowly moving up. I like the price action here. We had this triangle that we drew. I'm gonna get rid of this for now. It had violated part of it. You know, nothing's guaranteed, it's not 100%, but I do like Netflix how it's starting. You can just see the uptrend going, okay? And it's pulling itself up. It's above all the moving average lines, 20 day, 50 day, 200 day. It's above all that, you can see the price action is above all the moving averages, which contendably make you believe that, okay, it's on the upswing. It had gotten through these levels of support and resistance. Let's move these lines now. So it's got this nice little uptrending channel. You can draw some lines here, okay? So Netflix in an uptrending channel for now. I like it, I like how it's moving up. Next area resistance, probably right around 350 if it can connect to the top edge of the uptrending channel. So maybe Netflix has finally found its bottom. It's got a long way to go. Here's the all-time high near 700. So Netflix, I like this upward momentum. They have to look for a trade on Netflix for our newsletter readers. What else we have? Cisco, daily on Cisco, you know, it's okay. I'll keep an eye on that proctor and gamble. You know, these are quality. These companies where, you know, they just sell everything that you need. Proctor and Gamble makes so many products, has had this nice move up here off the lows. So, you know, this is what you do. You look at the charts, you see the price action. I wanna find something that's worthy of us getting into or that you can key in on Walmart. Another quality, all-time great company Walmart. Here's the symbol, WMT, just has the nice uptrend here. It's a little, you know, at times yucky looking, but it's still moving higher. I like, I love Walmart as a company. I'm personally invested in Walmart. So I like to see it keep moving up. Let's see. So we've got the healthcare stocks we always look at. Here's Eli Lilly on the highs. Bristol Myers, you know, a neutral pattern for there. Pfizer, also neutral pattern. Merck, making all-time new highs. Where's Johnson and Johnson? Let me just type it in here. Johnson and Johnson, near its highs. So healthcare always doing well. I think when healthcare has a major pullback, it's a time to really seriously consider getting in. So you have to look at what other, whether you like the individual stocks or you like the XLV, XLV, this is the ETF. Get all these healthcare companies in one shot. Looking pretty good, you know, sideways action, but not having that just general downtrend like you saw with the major markets. This one sideways action is okay. And it starts to move up as well. So keep an eye on the XLV. PayPal still scraping along the lows, along with square. Those are the two biggie online payment players. I have nothing to talk about those right now because they're not really doing anything Costco. Let's talk about Costco. Great company had a huge 30-day move yesterday. Look at this power move yesterday. Over $32 a share. So we had drawn this large congestion pattern is what it's called, where the prices get tighter and tighter and then it has to break out one way or the other. So it broke to the downside. And this big move yesterday, I think they came out with some good numbers, some good monthly sales numbers and it just had a power move, $32 higher. I like that move. So what it's gonna do is try to gun itself back into the pattern here and maybe blast through to the upside. So we'll see, it's got the, you can see this one right here. This is the, where is it? The 50-day moving average is right here. So it might gun for that, which is around right under $490 a share. So we'll see. Keep an eye on Costco. Great company, you know, down to lows. Maybe you grab a few shares. It's up to you. McDonald's doing okay. We looked at Pepsi. Now we have a position on lows. We look at lows in Home Depot. Kind of trading sideways here, but a little bit of a downtrend the last two weeks. That's not good for us, but you know, we're sweating it out, waiting it out. The thing about when you sell options, the good thing is that you have a huge range for profitability, huge range for profitability. Stock can go up, stock can go sideways, stock could go down, and you can still be, still come out a winner when you're selling options. What do I mean by selling options? Well, you don't have a position that you've bought and now you're looking to sell it. What you do is your initial position is a sell. You sell something first and then you buy it back second. That's what option selling is all about. So we sell it at one price and then we wait, wait, wait, and then we try to buy it back at a cheaper price. That's the closing transaction. So that's what option selling is all about. And when you start out with an option selling position, the stock can move higher or lower or whatever and those option prices just start to decay over time towards expiration. And then eventually, as long as the stock doesn't really make a major, major move against you, you can buy those options back at a cheaper price and lock in your profit. So that's what we're doing. We have a position on lows. We have a put spread on lows that we sold. So we're just waiting for that thing to decay. It's okay if the stock moves sideways, that's fine. Options will decay every single day, no matter what, no matter where the stock goes. So we're just waiting for that option decay to kick in. Home Depot, same thing, sideways action. Here's Warren Buffett's stock company fund, Berkshire Hathaway, class B shares, right around $318. You can see the little up move here. Draw a little pattern here. You've got the up move. You've got the flat top, right? Okay, so this is the ascending triangle pattern. If it can get above 320, which seems to be, you know, the area of resistance, 320, 320, 320. And when it tries so many times and finally blasts through it, it gets all this energy to blast through it, it'll go. It'll have a big move higher. So keep an eye on that 320 level for Warren Buffett's Berkshire Hathaway. It's brk.b in the charting platform that I use. Some have a brk slash b depends what the symbol is. Go back to our website. I also have in the services tab in the shop section, this other report that I wrote about another options trading strategy had to buy the secret to buying Warren Buffett for pennies on the dollar. It's another options trading strategy that if you're interested, take a look at that. Okay, that's Berkshire Hathaway. What else going down the list? Meta, Facebook kind of scraping near the lows, starting to make a move higher. I'm not a big fan of this company. So I don't really spend a lot of time looking at it. IBM, anything with IBM kind of sideways here had a big move down trying to get its footing. So nothing for me on IBM. Google, another one of the big tech stocks kind of still near the lows, maybe making a double bottom. What's a double bottom? Or it makes a major low comes up and comes back to try to test that major low. So let's put a line here. We'll keep it on for future charts, see what happens. If it bounces off the low, then that's typically what's called a double bottom and then it starts to rally back up. But these tech stocks, look at just the major downtrend. You can see here, we had the sideways channel that finally broke to the downside. So low 80s, mid 80s right here, possible support for Google. Getting down to the bottom of the list. Clorox, I had drawn this before. We had the up move with the flat top waiting for it to convincingly break above 150, did not do that. Kind of slid back down, trading mid 140s. I'm keeping an eye on Clorox. Colgate, looks a little bit better. Nice uptrending channel here. For Colgate, CL is the symbol. And the two others that I've shown in the past, two utility companies, Con Edison, ED, here's the symbol up here, ED, Con Edison and Southern. We had position on Southern, worked out great for us, took profits on that. So it was making the lows on the RSI, got to the 20 level, which is my low. And look how it bounced nicely. Let's go back to Ed. Also had double bottom on the RSI and here finally made the bottom and rallied up. So these are the kind of things you wanna look for. The price action along with the RSI and how it reacts off either the moving averages or other support and resistance areas that you've drawn previously. Okay, so that's it. Let's go back to the SPY one more time. Kinda get a game plan for next week. We're stuck in this sideways action here. What we wanna see is it for to get above 390, which is now the major support slash resistance depending on which way the stock is coming from. Right now, 390 resistance, we wanna get through that, get up to the 400 level, which is also where the 200 day moving average is kinda lurking in the top of the channel. If it can get through both of those, we may see ourselves a nice rally, hopefully this year back towards all time highs of $480. All right, that'll do it for me, everybody. Hope this has been helpful. Just to stress one more time, you know, if you're an option trader, stock trader, you wanna look at the charts. You need to get an idea of which way price action is going. You don't wanna jump into trades if the price action is telling you to sit out. That's what we've had to do in 2022. We took a lot less trades this year because the market was telling us to stay out. And that's what we did. And we still ended up with 100% win rate in our put selling newsletter. So I'm pretty happy with that. So that'll do it for me. Please leave a comment, give me a thumbs up. Don't forget to subscribe to the channel or send me an email. I'll always answer your emails. And I love talking to you. I love answering questions. All right, that's all for me today. Hope everyone has a great weekend and a great trading week ahead. This is Lee Lowell signing off.