 Hey, all right everybody This is Lee Lowell from smartoptionseller.com today is Sunday December 12th 2021. This is the Sunday edition of our Saturday synopsis It was not around yesterday to make this video. I got some emails from people saying Lee where are you? What happened? Where's the Saturday synopsis? So it's okay. I'm here didn't have a chance to do it yesterday. So this is the Sunday version What do we do in the the Saturday synopsis? Well, we look at charts. We look at the indexes We look at individual stocks. We look at my setups We look at technical indicator support and resistance levels and I let you see what I'm seeing I'm trying to show you what I see on the charts what helps me gauge When I get into trades and when I get out of trades so I'm here to make these free videos try to show you what I'm seeing on the charts and Maybe help you a little bit get better in your own trading. So let's just jump right in is what we do look at the charts So let's open it up right now We always start with the S&P 500 and we use the SPY which is the exchange traded fund This is I look at daily charts daily bar charts I like to go over this little bit of information each time we get new people looking at these videos and they ask The same questions. What are what's the charts? What do you use? What are your indicators? So let me just quickly go over what what I'm using. I Mostly look at the daily charts. I'm a little bit longer term trader. I'm not interested. I am not an intraday trader I'm not a day trader not a swing trader It's just too hard too much volatility to to trade on that short-term basis So we look at daily charts and in our newsletters We're we're more a longer term one or three months is our timeframe I think that gives us enough time for the stock to to move in the direction that we that I think it's intended to move To so what we see here is a daily bar chart open high low closed bars. I don't use candlesticks. I'm not a candlestick guy I have three moving averages on the charts I use a 20 day 50 day and a 200 day all simple moving average not exponential Down here is the 14-day RSI indicator. It's an overbought oversold indicator and fluctuates between 0 and 100 these two horizontal lines are at the 80 level and 20 level that is my gauge Of what I consider overbought and oversold You could move these lines in or out to your liking the default is 75 and 25 That was the the original creator intended for those lines to be the overbought oversold I bumped them out a little bit. All right So what we do on the charts is that we look for patterns We look at the price action meaning which way the the stock or index is moving and we use these These these these patterns here these W pattern is congestion patterns these channels to give us a gauge of when a stock is Is hitting some tops or hitting some lows and since we're mostly bullish here at the smart option seller We look for bullish type of trades. We sell put options. We sell put option spreads and Those are bullishly oriented trades So obviously I'm always looking for trade setups to let me know that okay This stock is on the down and is ready to move up and that is what I use for my timing And I use the charts to try to tell me when it's time to get in when it when the stock is making a low and Looking ready to bounce and those are my higher probability setups. Okay, nothing's guaranteed Nothing's gonna work 100% so you have to make sure that you you get in right where your timing is a little bit better So these what I call higher probability trades. You're just getting in at a better time So let's take a look at the the S&P 500 first. That's what we do We like to look at the overall market and where it's going where it's trending As we know the market's just been going up up up up up making all-time new highs many times this year But as we're trying to make trades one to three months out in time We have to pick times where the markets is on a pullback and ready to make that next move higher So what do we do? We draw these channels and we watch for the bounces We'll bounce off the bottom leg with a channel or a stocker index will bounce off The moving average line so I look for those I look for the bounce off the channel or a bounce off the moving average line Now the S&P 500 has gone up It's been going up. We had this down move starting September seasonal seasonal bearishness in the market September 1st to middle October had the down move and then the general markets just started going up again Hit all-time new highs back here in November and we had this little down leg for about I don't know a week and a half or so and that really scared a lot of people for some reason That's when the the Omicron new COVID variant came out and it scared a lot of people So this little move right here was very scary and how do we how do I know that was scary? Well, if we look at the VIX, which we looked at last week the VIX is the fear indicator. We saw that Volatility spike now here in the VIX When you see these big spikes these short spikes That means the market is dipping and people are getting scared the VIX moves inversely to the general market So when the market goes down the VIX jumps But it's very short-lived and I talked about that last week You can see these spikes only last for a couple days at a time now that little move that little down move in the market We had for about a week and a half or so Really spiked the VIX pretty good and I said it's gonna last just a couple days And that's what it did this week the market rallied again and the VIX came down. So let's go back to the SPY So if in context if you're looking at the market as a whole You would have seen this little down move right here and you'd be thinking, you know, what what's what was everyone? So nervous about it was just a little blip down in this long uptrend But for whatever reason it scared a lot of people because it was COVID It was dealing with COVID and people were thinking. Oh, here we go We're gonna have another nasty nasty dip in the market. But what happened? Well, this was this was last Friday Let me open this up a little more last Friday We're coming down to the lows and then this week all this week we bounced all the way back I mean, we had a massive move higher this week This was a big move back higher this week, which is really nice But so if you're really a technical trader, you would have saw this bounce off the 50-day moving average and think You know, this would be a great opportunity to buy the market's been in an uptrend Just having a normal pullback and it's ready to go again So here was the the signal that if you were looking to get long This would have been your good entry now if you're worried about COVID and worried about well What if it keeps falling? Well, then you don't go all in I always say you nibble you nibble a little bit you buy a few shares or whatever you want to do sell a put option buy call option But you don't go full force you wait or maybe you wait for the confirmation So you wait and you saw it bounce and it bounced off the 50-day moving average So these moving average lines really do act as support a lot of the time especially the 50-day moving average a lot of people follow the 50-day moving average and When it starts to bounce everyone jumps in because everyone's watching the same thing okay, so This little blip down was in the context of where the market's been not a big deal But it definitely scared a lot of people because it was COVID related There's also the other news narratives out there Inflation the US Federal Reserve possibly gonna raise interest rates soon So that scares people as well, but in the long run the market will continue to go up the market Always finds ways to go back up. That's just how the market works Yes, we'll have the little dips along the way because of the news stories out there But you can't stop the companies from making profitable products And as long as companies are making profitable products their earnings are going up their stock price will go up That's how the market works. So don't fear the don't fear their down moves. Okay. Yes I understand we all have long positions on in those positions may be losing money while we have the dips But but if you play it properly and you're holding for the long term Then you know the market's gonna come back now If you're if you're if you're very short-term and your scalper and your intraday trader that that's very hard to do very hard to do the market's very volatile in that short term timeframe and I never really found success trying to do that for myself I just couldn't do it. I need to go a little longer because I need the market to you know clear out the noise every now and again And and find its way higher. So that's the way I do it. Anyway, so that's the the S&P 500 Let's look at the Nasdaq Where we use the QQQ the triple Q's as our gauge for the Nasdaq Same thing just been moving higher higher higher within this long channel Okay, hit the tops here So how little pullback the pullback right as I talked about last Friday not this Friday two days ago, but Nine days ago. We were on the lows here. This is when the Omicron came out Everyone got nervous, but look how it bounced bounce right off the 50-day moving average and this week had the big gap up on Monday and all this week was just higher so the Nasdaq looks good too and I know by the end of this year in the next couple weeks will probably make more all-time new highs now It does start to slow down a little bit in December Holidays and all but I do believe that we're going to see more new all-time highs by the end of the year Let's look at the Dow Jones And we can use the diamonds. This is the DIA ETF for the Dow Jones Dow Jones is a little bit has been a little bit more flat Than the Nasdaq or the or the triple Q's That's only because there's you know, there's only 30 stocks in the Dow. So I don't put much emphasis on the Dow Jones But but you know it bounced right along with everything else, but this one bounced on the 200-day moving average Here's the 200 day. So the Dow's a little bit off on its own little own island Then the the Nasdaq and the S&P 500 so But the Dow looks strong too bounced off the 200-day got back above the 20-day and the 50 looks like it's ready to go Maybe it'll hit 370 Before the end of the year. So that's the that's the Dow So let's take a look at some individual stocks now as we typically do we look at the more popular stocks Let's start with Apple because Apple had a good week this week more all-time new highs for Apple Talk about Apple a lot here Apple had been very ugly and it finally has this nice curvy Nice curvy move higher and it just has gone ballistic Just under $180 a share all-time new highs for Apple. This right here was the congestion area Had people if you were if you're willing to step in this was a congestion area telling you that it's probably Getting ready for that next move higher and it really went from 150 up to about 180 So nice $30 move in a short period of time The last time it took Apple here's 150 from 120. So it took Apple a Really long time back in March went from 120 to 150 Took a couple months, but here it only took a couple weeks So Apple was gearing up storing up this energy for a nice move higher So Apple could be getting a little overbought here though Now I'm not saying that the bull move is over and that Apple is never going to reach more More new all-time highs just saying you can see the RSI getting a little bit into overbought areas had a nice Quick up move so it may take a pause here Could take a pause here pull back a little let the moving averages catch up and then keep going higher So this was a nice move may have a little pause, but definitely Apple for the long run It's gonna go up in the long run. It has to Makes billions of iPhones people billions of people have billions of iPhones and you can't stop Apple from Having profitable quarters, and that's what keeps the stock price going up Okay, so that's Apple. Let's look at Tesla As we always do Tesla is a crazy stock I don't I sell some put options on Tesla, but way way way out of the money It's just too crazy to try to trade things, you know around its current price So we had Tesla in this channel. It just went ballistic over $1,200 a share and I drew the the congestion pattern last week which typically means it's either gonna blast to the upside or blast to the Downside, but I had also said that the thousand dollar mark seemed to be a good support area for Tesla as well Well, it came out downwards from the triangle here came out to the downside Definitely went below a thousand but caught itself very quickly and once again pop below a thousand But but it finished yesterday or Friday. I should say at a thousand seventeen So this thousand dollar level still seems to be a good area support Maybe even the nine fifty if we draw we can draw another trend line here or support line right around nine fifty So, you know now it maybe has duplicate support areas You can draw trend lines. I mean everybody sees something differently. Okay, so nine Let's just say nine fifty to a thousand probably good support area for Tesla Thousand maybe a little stronger, but anyway Tesla is it's hard to gauge where Tesla wants to go off of you know Your typical Indicators now had drawn these channels, which you know helped us a little bit, but Tesla's just just create a crazy stock It's not overbought not oversold. So I have to believe the next move will probably be back to the upside It's catching its support here And if the rest of the market goes up Tesla will probably go back up as well as far as trading it, you know Stock options. It's a tough call. I sell put options way out of the money I'm talking way down here. Okay So it keeps me keeping you away from danger trading it around here. It's very hard. You can get whipsawed out pretty good I don't like to get involved in that whipsaw. So I stay away from Tesla for those kinds of trades Let's see what else we have. Let's go to Amazon Amazon still stuck in the long channel still stuck in here just can't find the the strength to continue on outside of the Outside of the channel here. It's it popped a couple times, but just never had enough follow through So it's still back in here finding some support maybe along the 50 and the 200 day moving average You know the the 200 days sloping upwards a little bit 50 days sloping upwards a little bit. Maybe it's sort of getting into this upwards trending channel And we'll finally blast outside of this other channel So it depends on how you look at it, you know, we could find some support here Around 3,200 You know, you can even make a smaller a smaller channel. You can draw another support line here I mean it all depends on how you want to do it all depends on what you're seeing You can you can even draw a little uptrending channel here Okay And we can do one here basically as well So maybe it's maybe amazon's in this other channel There's lots of things you can look at on a chart, you know, not not everything What i'm seeing can be completely different from what someone else sees In the eye of the beholder, okay, but but otherwise amazon still stuck in this Range here and just needs to needs to get up over this, you know, 3,600 mark and keep going Amazon so I don't have really much to say about that. Let's see what other stocks we have in the list here I want to show you a couple stocks. So microsoft Still strong Still strong still bouncing off the the moving averages You can see how it bounced off the the 50 day moving average From last friday and the friday prior and this week strong. Here's the all-time new highs You know microsoft has just got a strong looking chart just keeps going up Look, let's look at intel Now intel has been in this down move I talk about intel versus amd all the time advanced micro devices. I like amd a lot better intel You know five ten years ago. I would have been all about intel We sold put up we sold put options on intel many times. I loved it with my go-to stock But you know, it just doesn't have that that flare anymore that that strength that amd has So intel has been in this downtrend We don't trade it much because i'm not finding any opportunities But it had this little had this blip higher This week blasted up not I don't really remember what that was about But it got knocked all the way back down again right into the middle of where it had been trading So I think Had I think people who needed to sell this thing Was real happy when it jumped up, you know four dollars a share five dollars a share And they sold it all the way back down this whole week just got knocked all the way back down So intel still kind of stuck in this rut I'm not Nothing for me on intel amd though. I am getting a little excited because I love amd had this nice power move higher We weren't involved been waiting for a pullback. I think we may get get what we need here Here's the 50 day moving average And I think early next week, you know tomorrow's monday It may catch up a little to the up sloping 50 day moving average Maybe consolidate a little bit and then run on for maybe all time new highs again So i'm getting excited for amd. Hopefully we can get into a trade there Do I want to try to front run it maybe a little bit, you know, typically I think amd would probably bounce if it connects with the the 50 day moving average But you know, that's only if you want to try to front run it. It could fall through it Don't know so maybe nibble a little bit don't go all in but i'm keeping an eye on this just like we talked about disney disney the other week disney just had gotten hit really hard And got way oversold on the rsi had talked about disney the other week That could be a good time to start nibbling and disney definitely went has gone up from the low 140s to the low 150 So it rallied about $10 in this span of a week or so. So that was a good trade there in disney We liked disney. We sold a Put spread on disney. Let me see what else we have Let's look at the typical stocks that I like to show you That why we don't like to try to pick bottoms all that much And I use this all the time. This is verizon as our example I love verizon great company largest cell phone carrier in the us And maybe around the world as well But verizon still been in this downtrend You know if a stock's in a downtrend, what's the point of of trying to get long? What's the point of trying to buy shares when it's in the down in the downtrend? It'll just frustrate you and it'll cause you grief and frustration and anger And it's not doing your money any good So make sure you look at the charts because you want to get in on a stock if you're bullish You want to get on a stock that's moving higher not moving lower So verizon had been moving lower moving lower had this big swoop down This could have been good for a little a bullish scalp, you know quickly Because if you didn't get out here now you're holding and now you're now it's below where you got in earlier So trying to pick bottoms is hard unless you're willing to get out quickly Okay You could have said I wanted to buy here or here or here or here And and and it's keeps going down could have bought here quick scalp up if you had be quick And now it's down again. So verizon not ready to get in yet because it's just still going down Let's look at chlorox also. We look at chlorox chlorox was a darling in the early days of the pandemic Was going up and then it's just been in this downtrend here But has been in the sideways channel see all these channels that i'm drawing This is what helps you figure out when a stock may be ready to get out And move in a different direction chlorox still stuck on the sideways action It's good because it's not going down anymore. So it's finding support Finding support. I have to believe the next move for chlorox will be to the upside when it finally breaks below I mean above the The channel up the channel upper end here And if it gets above this downtrending 200 day moving average chlorox between 175 and 180 Could be the clue or cue That maybe the uptrend is starting. So i'm watching chlorox keep an eye on chlorox Let's also look at colgate I'm getting a little excited about colgate as well colgate It's been all over the place was in this downtrending channel But has moved outside of it. What I like here about colgate is it has popped above The let me open this up a little more popped above the 200 day moving average was right here So it's above the 20 day above the 50 day getting above the 200 day. That's very powerful Okay, so let's let's bring this in so you can kind of see what chlorox Colgate is doing. This is colgate Uh, I like how it popped above the 200 day moving out. So keep an eye on colgate This could be the start of of the next bullish run for colgate This is what the charts can help you decide if the stock is ready to go or not. Uh, let's see what else we have Uh walmart definitely want to look at walmart We drew the support line right around 135 and it has tested that level a number of times And most recently this past week got down to 135 and changed and bounced up had a good day on friday Sitting just below the The 200 day moving average right here So we'll see if it if it gets hit resistance and and drops back down again But but I had bought some on this last move here. I didn't get any here. I was waiting for it to hit 135 Missed that so we'll see what happens but with walmart, but we know walmart's a great company I don't think it could stay down here for very long I have to believe walmart will finally end up making new all-time highs at some point in the near future Maybe not near future, but in the next few months probably walmart will after the holiday season We'll see how the sales are and see how walmart didn't and that'll dictate where the stock goes. We can sort of see Little double bottom here. Maybe a little w pattern here. Um, but i'm keeping an eye on walmart. Let's see. What else we got Was target doing anything Target, um, yeah, nothing getting down to the 200 day moving average nothing on target for me Let's look at now some of the the farmer stocks Farma, ilai lily bristol mires. We talked about that one. Unfortunately. It's coming down again We have a play on murk murk is is puzzling to me. I'm surprised. It's been so weak So weak we sold some put options on murk Still down below here Um, so we're just watching this one. I I hope that we've hit some some oversold area On murk. I'd like to see this thing bounce a little bit, but You know, this one was was been tough. I don't like to see murk getting hit so hard What else kelog? kelog just kind of not doing much pay oh, let's talk about paypal on square paypal Has been in the downtrend like I love paypal on square. I love the payment sector But it's it's still in this downtrend for me. So i'm not ready to jump in yet Had the little bounce off off oversold areas But you can see how it's it sort of got rejected at the 20 day moving average and had a down day on friday So there could be some more downside To to paypal this week. It could could drop a little more. I'm not ready to jump in yet square Same thing they're in the same square and paypal. They're they're running side by side same sector square has been getting hit Um got a little oversold here did have the bounce, but just like paypal Yet friday was uh a down day here So there could be some more downside for the payment sector What else we have oh mcdonald's let's look at mcdonald's and pepsi because they're they're very similar charts They're both strong. You can see the nice curved up move sometimes These are hard to these are hard to describe But it just has a nice smooth curved look about it And that that is a bullish sign at least from the chart the way that I see the charts I can't really describe what kind of pattern that is It's just when you look at hundreds of thousands of charts over time like I have you can see this kind of nice rounded Up move now mcdonald's had had a nice blast higher It could be ready for a little bit of a pullback and then continue on But mcdonald's very strong here pepsi has sort of the same chart It let's open this up kind of has not as smooth as mcdonald's but is is still going strong It's above the 20 day above the 50 day everything's sloping upwards. So pepsi is definitely strong On the next pullback. It probably it would be a good time to nibble for another leg higher watch when earnings are coming out You always want to make sure you know when earnings are coming out because that's something you need to be careful about But pepsi mcdonald's sort of has this nice They they they look nice. Okay. They look like nice uptrending charts um Let's take a look twitter social media twitter We we've sold put it on twitter before Kind of in this downtrend here. I'm not ready to pull the trigger yet on twitter did get very oversold here Very oversold. It was good for a scalp. You bought here, but you had to get out. You got to be quick if you want to scalp Uh friday was a down day. So it's twitter not so much yet. It's it's it's got this, you know, it's sort of in this It's in this it's in the down channel right here Okay, so you got to watch it Watch it It may have the next move may be down to the bottom leg of the down channel So unless it breaks out sideways here outside of the channel and starts to move up Until I start to see that activity for now staying away from twitter Facebook And i'm not a big fan of facebook Try to stay away from that ibm google The meme stocks game stop amc I'm not i'm not really doing much of those. I just keep them on here on my charts for whatever reason I don't really watch these. Let's take a look at the the bitcoin stocks riot Now riot we we I gave out an unofficial trade on friday on marathon digital holdings mara I'll take a look at that chart quick, but but mara And riot same sector they're bitcoin related So we've got a little bit of support here I don't know if it's going to pop through it or not. Uh, this is this is riot Could drop below, but I like mara better We we did a sold a put option on mara because it is sloping upwards, but had a big pullback Coming on support near the 200 day up sloping 200 day moving average The the slope of the moving averages are very important as well. Are they up sloping or down sloping? Okay So we got in sold some put options unofficially on mara way out of the money and so let's see how that works out And what else we have peloton peloton got knocked down again People are asking me is it time to buy peloton trying to pick bottoms Picking bottoms are hard Peloton still in the down friday Bad day on friday made another new low here So peloton and let's look at the monthly chart for peloton So you can really get a gauge of where it's been what's happened. So peloton came out towards the end of 2019 Had a hot awesome move up to $170 a share or so But has been knocked back down below 40 up and down. Where's the bottom? I don't know. Maybe maybe $20 it could find some support If you're if you're interested, maybe you look to price out selling some put options On peloton, you know, another 50 percent haircut $20 strike Who knows? I don't even know what what they're trading for these days. Not a recommendation Not a recommendation here. Just something to think about Uh, what else? I think that's about all Whoopsie get up there And let's move this back over as well. Sometimes this thing moves on me eBay, uh, we have some put options that we sold on ebay This thing needs to hold very quickly here. It's just hovering around the 200 day moving average The the rsi kind of getting a little curved to the upside here So maybe the selling's over. Maybe we'll get a pop from ebay, but I'd like to say see ebay jump up here. Anyway, all right. So that's it Let's take a look at the sp500 one more time here Give a final a final synopsis. I like the market heading into the end of the year Yeah, we have to keep an eye on on covet and inflation and all But those are those are things that will Should work themselves out over time. Okay, but trading very very short term is hard to do over the long run We know the market goes up. So We look for the balances off the moving average lines or the channels And we saw that right here bounce off the 50 day moving average. All right, so that's it for your your synopsis here Let's quickly go to our website Smartoptionseller.com we talk a lot about put selling. That's what we do. We're option sellers Basically put option sells put option spread sellers You want to know more about put option selling get our free guide put selling basis go to our website smart option seller.com click on put selling basics Scroll down you can read through some of the testimonials put your name and email address here We'll send you a free copy And what are the things we offer right here services tab? We have two newsletters and our one-on-one coaching if you need some help getting to the next level We can help coach you. All right, that's it in this youtube video Don't forget to subscribe hit that red subscribe button bottom right hand corner Give me a thumbs up if you think this information is useful helpful I like to do these for free. I like to help you Leave me a comment send me an email And That's about all I've got to say for today. All right. It is sunday So tomorrow's new trading week getting towards the end of the year so things may slow down a bit. But anyway Have a good rest of your weekend and have a great trading week ahead. This is lee lull signing off