 All right, here we go now. Hey everybody, Lee Lowell here from smartoptionsolid.com. Today is Saturday, October 30th, 2021. Getting down towards the end of October Halloween time. Welcome back to everyone. Welcome to another edition of our Saturday Synopsis. What do we do here? Well, we look at the charts. We look at indexes. We look at individual stocks. They try to teach you how to become a better trader, how to look at stocks and use them as your source of getting into and or out of a trade. This is called technical analysis. This is what I've been doing for the last 30 years. So I make these videos to try to help you see what I'm seeing and try to help you understand where a stock might be headed next. And so you can plan your next trade. So let's just jump right in. Take a look at the indexes. Take a look at individual stocks. Show you what I'm seeing. Show you what's on my charts. What indicators I use and formations and see how I gauge where a stock may be headed next. So let's open up the screen here. This is my eSignal. This is my eSignal charting platform. And something just came on the screen here. Let me remove that. I'm not sure where that came from. This is an eSignal platform. And they are a data vendor of stock and option and commodity quotes. So this is what I use. I've been using them for the last 20 some odd years. And this is what shows up on my screen. This is how I create a chart. On the screen, you will see what's called a daily bar chart. An open, high, low, closed bar chart. What does that mean? Well, each one of these vertical lines is one day's worth of trading for whatever specific stock or index you're looking at. And you can see over time, my real estate here, meaning the whole screen, shows how a stock has performed over a roughly two-year period. Doesn't mean that that's the look-back period that I have to shoot for. It's just what shows up on my screen here. This is a daily chart. And each one of these bars, as you can see this long bar right here, it always has a little dash mark on the left, which shows you where the stock opened for the day. Obviously the low of the bar, the bottom of the bar is the low of the day and the high or the top of the bar is the high of the day. And on the right side of the bar, there's a little dash mark that shows you where the stock closed for the day. The closing price is very important because it can show some momentum for the next day. But anyway, so we see how a stock has performed over a period of time. Now, this is the SPY, which is what we always look at first. It's the Exchange Traded Fund for the S&P 500 index. It gives us the best overall view of the market as a whole. That's what I like to concentrate on the S&P 500. And so we can see since the pandemic in February, March, 2020, the market has just gone straight up, which has been nice for you bullish players out there. And so what we like to see is we're bullish here in our newsletter and in our servicesmartoptionseller.com. We look for bullish trades. So obviously we're going to look for stocks and indexes that are moving higher and or ready to jump higher after a pullback, okay? So this is what we look for. And what you're seeing on your screen here is the SPY. And you can see that there's some patterns here and there's triangles, W pattern. We've got some channels here. So these are things that I draw. These are things that I look for when I'm sketching out my charts. You'll see a couple of different lines on here. I've got a blue 20 day simple moving average. I've got a red 50 day simple moving average. I know it's kind of hard to see with some of these patterns drawn and this line right here is a 200 day simple moving average. Those are very widely followed moving average lines. And when you have enough people looking at the same thing, stocks tend to move in the same direction because everyone's looking for the same patterns, the same setups to occur, right? So then it just becomes a self-fulfilling prophecy that the stock is gonna move in a certain direction because everyone's looking at the same thing. So don't knock it. Don't think, that just sounds crazy. It works, okay? Stocks move on momentum. When a stock is in a certain direction, it will stay in that direction until something comes along and knocks it in a different direction. I always use that physics analogy. An object in motion tends to stay in that motion until something moves it in a different direction. Same thing with stocks. Stocks move on momentum. When a stock gets into an uptrend and there's really nothing else out there to knock it down and what would that be? Maybe a bad earnings report or an FDA announcement or some other government type of report. And stock really has nothing else to move on but momentum and players jumping in onto the same direction. So don't knock that. So we like to follow the moving average lines, 20 day, 50 day, 200 day. Some people will use a 40 day or 100 day. I don't use those. So I've got these moving average lines. And then down here at the bottom, I have the RSI. This is the 14 day RSI. And it's just an overbought, oversold indicator. And it goes from zero to 100. And the default is that anything above 70 is considered overbought. Anything below 30 is considered oversold, okay? And you can, that's these horizontal lines right here. I've changed my levels to 80 and 20. Anything above 80, I consider overbought. Anything below 20, I consider oversold. And that just gives you a warning that, hey, the stock's getting very oversold. Maybe look for a bounce soon or when it gets overbought like up here, it's just saying, watch the stock. It's getting a little overheated. There may be a pullback soon. It doesn't necessarily mean that the turn is imminent. It's just telling you to keep an eye out on things. All right, so we look at the charts. We look at the price action, which means just which way is the stock moving? Obviously, we can see the S&P 500 has just been moving higher. Now, I last made a video about two weeks ago. I was gone last weekend, so we've got a lot to talk about actually to see where the market's been. So what I had drawn out is that the S&P 500 had been in this nice uptrend channel. You can see the blue line at the top, the blue line at the bottom. Those are the lines that I've drawn. I drew those weeks ago. So just showing you where the market's headed. And you can see that the S&P 500 bounces within the channel. So if you're looking to get long, you want to get on board, you may want to wait or you may have wanted to wait for the pullback. Typically, a stock or an index that's in an uptrend will typically bounce off of either the 20-day or 50-day moving average, or at least off the bottom leg of the uptrending channel, which you can obviously see it has, it bounced each time. So right around September 1st, the market was in a nice uptrend. And then we had the seasonal pattern, seasonal period, where August, September, and part of October typically can be somewhat bearish for the market seasonally. And then second half of October into the end of the year becomes very bullish. So we had drawn this uptrending channel, and then the S&P 500 right around September 1st entered into this downtrending channel. So about a couple of weeks ago, I said, in order to see the market continue on its upward trend, if it was going to in fact continue an upward trend, we would need to see the market blow outside of the downtrending channel, which means I needed to see it come outside here and then move higher. Well, that's exactly what it did a couple of weeks ago. It bounced outside of the downtrending line, started to jump to back above the moving averages, which was a great thing. So the last video I made was right when the market was right around here. Okay, it had bounced outside of the downtrending channel and back above the both of these 50-day and 20-day moving averages, which was very bullish. Okay, so the last video I made was right here, and I said, it's only gonna be a matter of time before the market makes all-time new highs. This was the prior all-time new high, and then we eclipsed the all-time new highs just in the last week or so. So right around here, these few days of trading eclipsed all-time new highs, and we ended Friday, yesterday, October 29th, again at all-time new highs. You can see here's the bar that yesterday's trading. The little dash mark on the right side of the bar is where it closed. So all-time new highs are the S&P 500. It's a great thing. We're in a bullish period of the year. Last two and a half months of the year, very bullish. So I can only see the market continuing on this movement higher. We are in the midst of Q3 earnings, earnings coming out. You know, we'll get a bad one here and there that may pull the market back a little bit. It is, you can see it's gone up kind of vertical-wise. That's been sort of a straight-up move. So there may be a pullback in our midst just to get some of the froth out of there. It's had a pretty solid move over the last few weeks. So we may have a little bit of a sideways action or pullback, but I really can't see anything holding this market back long-term, at least till the end of the year. I can see us continuing on this run higher, which is a good thing. If you're looking to get in, looking to want to get onto the bullish train, you know, maybe wait for a little bit of a pullback. Maybe we'll have a day or two of some downside action, let these moving averages start to catch up to the price action, okay? So you have a little bit of a pullback in the price action, get these moving averages, moving upwards, they meet somewhere, you know, maybe around here, and then the bullish action starts again. So the S&P 500, looking strong. We look at the daily charts, you know, you have these intraday traders. We can also look at, these are one-minute bar charts where each line is one minute's worth of trading. So if you're a hyperactive trader, these are the things you look for, okay? You try to find some patterns. You try to find some overbought oversold areas. We don't trade like that. We're not intraday day traders. We concentrate on a little bit longer timeframe, couple months out, and so we follow the daily charts. Let's look at the NASDAQ as represented by the QQQ. It was also the exchange trading fund for the NASDAQ. NASDAQ took a little longer to eclipse all-time new highs versus the S&P 500. Here was the prior all-time new highs around September 1st. The NASDAQ also was in this downtrend, and then it popped out sideways, out and above the downtrending line, above the moving averages here. You know, right when we got into this area about two weeks ago, that was the bullish signal, time to get long. And then just this week, just Thursday and Friday this week, these last two days right here, eclipsed the all-time new highs. So everything's all-time new highs. NASDAQ, S&P 500, looking strong. Let's look at the Dow quickly. Let's look at the Dow Jones and see what that has done. I don't put as much emphasis on the Dow Jones because that only has 30 stocks in its index, but still it's the longest of the index as the oldest I should say that people follow. So here's the Dow was in this channel, and you can see the last all-time new highs was in the middle of August over here, and then just this week, the last few days, Dow has made all-time new highs again. So everything looks strong. It was sort of in a little bit of a downtrending channel, not as pronounced as the S&P 500 and NASDAQ. It was in more of the sideways channel, and then now it's popped above. This is what's called resistance. This line here, once a stock or index gets above resistance and stays above resistance for a couple of trading days, it will and should continue on in the same direction, which would be upwards. Okay, so, you know, barring any other major catastrophe, global catastrophe, something really bad, the markets will continue on in their momentum, their bullish momentum. I know we still have COVID out there. Companies are dealing with the supply chain issues. Any company, all companies out there, no matter what business they're in, are dealing with these supply chain issues, which means that they're having trouble getting the materials to make their products. They can't get the shipments in to deliver to the customers. You got boats and shipping containers floating out in the ocean. They can't find a place to dock, or if they have docked, there's not enough workers to unload all the goods. So we're having like a labor shortage, a shipping shortage, a material shortage. A lot of companies are saying the fourth quarter may be a little bit harder for them just because of these supply chain issues. And it stems from COVID. A lot of people are still afraid to go to work, or they don't have help at home to take care of their children, or they're not vaccinated. And so you've got these things that are, you know, constraining the supply. So that's sort of the issue right now. If there's anything that could knock stocks down for a temporary period of time, it would be these supply chain issues. There's not an issue of demand. The demand is there. People are still buying stuff. People have money, they're buying stuff. People have gotten back to work, they're getting paid better. And so the demand side is there. It's just, once we get through these supply issues, you know, things are, you know, gonna go real good. So, you know, there may be a little bit of sideways action, temporary pullback, but I don't think it's enough to keep the stock market from moving higher. Okay, just remember, the stock market is made up of companies that create products. People buy those products. As companies have rising earnings quarter after quarter, that keeps the stock market moving higher. And then, you know, you have the ebbs and flows. Reasons for stocks to pull back. You know, global issues like this are a reason for stocks to pull back, but temporary. Okay, so if you think this is the next bear market that's gonna end the world, then you shouldn't be involved in the stock market because that's not what's going to happen. Yeah, we'll get pullbacks, but they're temporary. I mean, you can see over time, let's go out to the monthly, over time, look where the stock market's been since 2009 and the last financial crisis just has gone up. Here's the pandemic, but look how fast the pandemic had bounced back. So there's always gonna be, there's conflicts overseas, there's pandemics, there's global unrest. There's all these things that happen around the world, but they subside over time and then the market just keeps going up. The market is a very optimistic place, okay? It looks forward, it looks to the future and there's always optimism in the future. So the market will continue to go up over time. You have to take advantage of the pullbacks when they occur to give yourself an opportunity to get on the bull train. Holding stocks for the long term has been one of the greatest wealth generators of all time. So if you want to increase your wealth, you have to have exposure to the stock market, okay? And so that's what we do. We, in smart options seller, we sell put options, we sell put option spreads, which are bullish strategies. So we're always looking for bullish opportunities to get into a trade when a stock is ready to move higher. So let's take a look at some individual stocks and see what's been happening. And we'll start with Tesla because Tesla has just been insane of late. Let's show you what I've drawn on the charts. Okay, here's Tesla was in this downtrending channel which we drew. We always try to draw patterns. Okay, here's a congestion pattern, this triangle pattern where they have a lot of wide intraday action that gets smaller and tighter and tighter and tighter, builds up all this energy. And this is a perfectly symmetrical triangle, which when the stock blasts out, it's typically gonna blast down hard to the downside or hard to the upside. Most of the time when you see a symmetrical triangle like this, the blast off will occur in the same direction from where it came from prior. So had been coming upwards bullishly, had a little sideways congestion and then it blew out to the upside again, right? Had a good move from $425, $400 a share all the way up to 900. That was a massive move. Then it entered this early 2021, entered this downtrend and then it was sideways for a while and then it got its mojo back, started moving to this uptrend is where we were, this channel. And then just the last couple of weeks, it just blew through the upper resistance here and it's been on this tear, all time new highs above $1,100 a share, just insane vertical price action. And you look at the RSI above 90, it's at 92. It's been above 90 for a couple of days now. That's just extremely overbought on what the indicators are telling me. But does that mean it is imminently going to fall? The market could remain irrational longer than you can remain solvent. That's a quote from Alan Greenspan many years ago, meaning that the market could do crazy things longer than you can survive with the money that you're putting in the market. If you've been bearish on Tesla, if you've been thinking a downside is coming and you've been putting money out there, buying puts or shorting stock, you've been getting hurt really bad because the market could just remain irrational. You're thinking this is just the most irrational movement and you can get hurt really bad. According to the charts, Tesla is just completely overbought. It shouldn't be going any higher, but it continues to go higher. Eventually it's gonna have a pullback. Eventually. When, hard to say, but I don't wanna step into this in front of this and try to short here. I'm gonna wait until I see some signals. What would those signals be? Couple of days of downwards movement. Get back below the overbought area in the RSI. And then it's probably time to get long again. I would wait for, for me personally, I would wait for a little bit of a pullback here. It's just too insane up here to get long because you could be the one holding the bag when everyone starts to sell. So anyway, this is just fun to watch. Like to see what's happening, very overbought. But Tesla, it's a crazy stock. Everyone loves Tesla. So be careful out there if you're playing Tesla in either direction. So we like to look at that, show you what's going on, but very overbought from what I'm seeing on the charts. Let's look at Apple. Here's our daily chart of Apple. So let's take a look at what it's been doing. You can see I've marked up the chart. We had this congestion pattern here and it did go higher because it was coming from down low, congested and went higher and it got into this sort of downtrending channel, had the W bottoming out pattern. Apple's been sort of, in the long run here, it's been sort of sideways, okay? Slowly to the upside, but more sideways action. Had the channel here, went up through it, decided to come back down. So Apple has not been the prettiest of charts, I will admit, but it's still a fan favorite. Everybody loves Apple. And so it had come down below the channel, found its mojo. And then the other day, Apple had made a good one day move here right before earnings came out and then earnings came out and dropped it down. And this was a time we decided in our newsletter that we were gonna sell a bullish put option spread, which is what we did the other day. I decided that Apple had came off five or six dollars a share after earnings. When you get a chance to buy Apple on a pullback like that, it's usually a pretty good idea to at least nibble and slide into a trade just because Apple is resilient and it will bounce back over time. So we got in here as the stock was coming down, we sold into a bullish put option credit spread. And now all we have to do is wait for Apple to move back up. Now you can see at the end of yesterday, which was Friday, October 29th, closed on the high of the day. There's a little teeny dash mark on the right side of this bar right up here, which means it closed near the high of the day. That's a good thing. We like to see stocks close on the high of the day, should lead to some bullish momentum coming next week. So we like Apple, it's also bounced off the 50 day moving average here, which is this line. So things we like Apple got into a bullish trade. Let's take a look at eBay. eBay, another company that we just got into a trade we sold a naked put on eBay because we're bullish. Why did we get into a trade on eBay? Well, I don't have it on here. So let me draw the, we have the, you can draw lines. That's what you do, you draw lines. So we had sort of the, so let's draw the line. We had this uptrending support line here for eBay. So as the stock had pulled back, it usually bounced. Now it could bounce off one of the moving average lines typically, or it could bounce off a support line. Now how much time do you give first look back period to start drawing some support lines? And you can also, you know, you can sort of see on the top here, the top part of a channel. And it's in the eye of the beholder. Not it's not black and white. It's not, it's not guaranteed. It's not a perfect formula. What I see may be different from what somebody else sees. Okay. So what I've been seeing is eBay was in this channel and here it had gotten towards the top of the channel. And I'd liked, I said, you know, if eBay can pull back, it would be a good place to potentially get into a trade. eBay had earnings on Thursday. It pulled back right, you can see the gap. Let me show you. So here's where eBay ended on Wednesday. Opened up Thursday with the gap. You can see the big air pocket in here came down on the lows of its day right to the uptrending line. And we got into the trade right here as it was bouncing off the bottom of this upwards trending line. Okay. This isn't an uptrend. When it pulls back, it could be a good place to buy. So we got into a bullish trade. We sold some put options on eBay and it bounced perfectly. And this is where it closed yesterday. See the dash mark right here. So it had a nice four or $5 bounce since the bottom, which is good for us. So we liked that. So these are the things we look for. We look for the channels. We look for potential support areas to get into a trade. What other stocks? Let's take a look at our watch list. Give me a second here. So let's take a look. Microsoft, another killer stock is now the most valuable company as of today. Has Eclipse, Apple as the most valuable company because look what Microsoft has done. Had earnings the other day and it just blasted off these last couple of days right here since its earnings were announced. Has rallied, you know, a number. Let's see it closed here around 308 and up to 331. So it rallied $20 some odd dollars just in the last couple of days. Microsoft solid, but might be getting into some overbought area here. See the RSI getting up near the 80 level. So there could be a little bit of sideways or pullback action. That's what healthy stocks do. They ebb and flow. They go up, they go down, up, down. So you want to track these movements. If you're looking to get into a trade, then you sort of wait for the pullbacks or you want to try to wait for the pullbacks to time your entry better. If you don't care and you just want to buy, well, then you buy and you wait. But if you buy when it's on a high like this, you're potentially buying right before a potential pullback. And, you know, watching the charts could help you time your entries a little better. I'm not saying it's guaranteed. It's just a way of potentially getting you into a trade at a better time. So Microsoft, very strong company. If a pullback occurs, it's probably a good place to get long because the company looks great for the long haul. What else? Intel, on the other hand, you know, I've been watching Intel. I'm a fan of the chip sector, the computer chip sector. I do like AMD a lot better than Intel. Last couple years, AMD has really been killing it. Intel not so much. Had earnings here, earnings right here, and then it just blasted down below. Getting a little oversold. It had a nice jump yesterday, Friday. Am I ready to get into Intel? I don't know. I'd rather buy AMD, but Intel you can see had blasted lower. And I'll give it another look maybe next week. But let's look at AMD. Clearly, AMD has more on an upward trajectory, had been sideways for a while. Making all these different patterns. And it had this triangle here, and it just blasted to the upside. But it made a high, right? It was getting a little overbought here. You can see the overbought area here as well. Had the pullback bounced again. Getting a little overbought. So AMD, a little bit of a pullback. I like the company long term. Not ready to get into a bullish trade yet. I'm waiting for a little bit more of a pullback. Maybe when the moving average lines could move up a little more, meet the downwards price action. That could possibly be an entry point. But AMD as a stock versus Intel, I like AMD better. Amazon had earnings the other day too. Got knocked back down. Amazon continues to trade in this long sideways channel. Not much happening. Can't really say too much about Amazon. It's just sideways actions. Just stuck between, you know, 3100 and, you know, 3,600 just keeps bouncing in this range. Even a little wider, you know, 2,900 to 3,600. But it just can't get a direction. It keeps, you know, earnings big gap down here. Had another gap on earnings the other day. So Amazon still stuck in this range. Netflix has just been killing it of late, had been stuck in this channel. Once it blasts through a channel either higher or lower, it will continue on in that direction. And that finally around here, end of August, it blasted through and continues to go. All time new highs. You can see yesterday, Friday, October 29th. Finished on the highs. You can see the little dash mark. Netflix looking strong. You know, maybe wait for a pullback if you're looking to get into Netflix. But company looks good. What else? And this is all about just showing you what I'm seeing, what chart patterns to look at indicators. Cisco waiting for earnings to come out. Procter and Gamble. Moving sideways. Walmart. We like Walmart. I got into some Walmart when it was oversold. Now a company like Walmart, biggest physical retailer on the planet. It's hard not to want to buy Walmart when it gets oversold like this. And it caught it perfectly right here in the low of the day was the low on the RSI. Got into some shares of Walmart and it's just blasted off about $15 higher. Looking good. Walmart earnings are soon, I believe. I'm not sure of the date, but you know, Walmart's a great company. Maybe wait for a little bit more of a pullback. See if you're looking to get long. You want to see the 50-day moving average. I'd like to see it start to turn, curl up and start to move higher. All right. What else we got? Disney. We've looked at Disney before. It's just sitting on this support right around $169.170. Is it going to knock down and just move lower? It's hard to say right here. Waiting for some action. It's got this down trending slope right here. Could it bounce up? I think earnings are coming out pretty soon. But it's trying to knock through this support right around $171.69. If it convincingly gets through it on a day or two, it's going to go down. It's going to drop a bit. There's a lot of force here trying to push it through. So whenever the earnings are, until earnings comes out, it could knock it down, and then it all depends on how the earnings come out. So watch Disney. See if it has enough momentum to break through here. Or if it just, the sellers are like, we're done, we can't get it through. Let's just start buying it. So keep an eye on Disney. No position for us in Disney right now. Pharmaceutical stocks. Let's look at Eli Lilly. Has a nice curl up here. BMY. Bristol Mars was a position that we had so put options on. We got out successfully. BMY may be starting to create this bottom here. The RSI has been moving up while the price action sort of still kind of sideways moving down. That is divergence. Divergence meaning the selling is starting to wane. The selling is starting to lessen. RSI is starting to move up. So that means BMY should be ready to start on the journey back higher. It's starting to make sort of this rounded little bottom here, which I'm happy about. I'd like to see a little more upwards action before I can say, okay, maybe it's time to get into another put sell trade. So keep an eye on Bristol Myers. What else we got? Pfizer is kind of hanging around a little bit. Merck has had, look at this movement from Merck. Merck has been strong. And so it's definitely had some vertical moves getting maybe a little overbought, but Merck is stronger of the companies Johnson & Johnson. It's kind of wallowing around here. So nothing for J&J. Kellogg looking not so strong here. Verizon is another stock we've looked at. Let's take a quick look at Verizon. It's in this downtrending channel waiting for it to pop up, but it had this massive move lower pop back up. Had a good bounce off oversold areas, but has now once again moved now below the downtrending channel. So Verizon, I love the company not ready to get in yet because the stock chart looks too weak. Let's see what else. AT&T kind of the same thing as Verizon on the lows. PayPal getting hit. PayPal moving down. Costco still a strong company. McDonald's looking pretty good. I'm trying to find a stock that I think would be good for some kind of trade here. That's about all that I have for right now. But once again, it's all about looking for the patterns, looking to see where stocks are maybe headed, how they move compared to the moving averages. McDonald's, you can see a little bit of an uptrend here bouncing off the 50 and or 20 day moving average. But earnings are coming out. So you've got to keep an eye on earnings. We try to make our trades in between the earnings announcements. You've got that three month block between earnings announcements. So that's when we make our trades. We get in and we get out. All right, we're getting over 30 minutes here. That will do it for the synopsis once again. Let's take a look at the indexes. We like to track the indexes. S&P 500, looking good. Had the nice pop out of the down trending channel. Might be getting a little overbought here. Could be due for a little sideways, maybe pullback, wait for the moving averages to catch up. But for the rest of the year, I'm bullish. I don't really see anything knocking this thing down in a good way. In a bad way, I should say. I don't see any major news that's going to take it down into a bear market. Seasonal period, end of year is bullish. If we get a pullback, it could be another opportunity to get long. I see us getting more all-time new highs into the end of the year. All right, so that's it for the synopsis here. I hope this has been helpful. Once again, it's all about looking at the pattern, see what's going on the charts. Try to see where the market may be headed next. Momentum is a big thing. All right, so let's take a quick look at our website here. We have our website, smartopsonseller.com. Here, get our free put-selling basics guide. Go to our website, smartopsonseller.com. Click on put-selling basics. It's all about how to sell put options, why we love selling put options. It's our bread and butter. Put your name and email address here. We'll send you a free copy. You can also go to our services tab along the top here. We have our two newsletters, all bullish put options, selling put options, selling put option spreads. And we have our coaching sessions. If you want to make that jump to the next level, we can certainly help you. All right, so I hope this video has been helpful. Getting on 34 minutes here. I hope you have some good information. All I'm trying to do is help you. Nothing fancy here. We're pretty simple. We're pretty basic here. Give me a thumbs up. Leave me a comment. Send me an email. I will always answer your emails. All right, that's all for me today. I hope everyone has a great weekend and a great trading week ahead. This is Lee Lowell signing off.