 Hey, all right, here we go everyone Lilo here from smart option so calm today is Sunday November 13th 2022. This is the Sunday edition of the Saturday synopsis It was busy yesterday, so I still want to get this video out to you So we're doing the Sunday version of the Saturday synopsis. What is the Saturday synopsis? It's all about chart reading. I'm here to show you what's going on in the markets by looking at the charts I'm a technical analyst. I look at the charts. I've been in this business over 30 years now I'm a chart reader. That's how I decide to get into and out of my trades It's different than fundamental analysis fundamental analysis is when you look at under the hood basically of a company You look at the details the sales the earnings revenue dividends PE ratios all that good stuff But to me those are just numbers that don't mean much unless you can transfer them onto a chart So I look at the charts All those fundamental numbers decide which way a stock is going to go and the charts help me decide Like I said when to get in and out of a trade So the Saturday synopsis of these free videos I make To to help you see what I'm seeing on the charts the indexes individual stocks and try to give you some ideas on how to use that Within your options trading if you're an options trader. We are options traders here at the smart option seller That's what we do. We use option trades We're basically option sellers we sell put options We sell put option credit credit spreads and then from time to time we'll sell bear call credit spreads Especially in this downtrending market. So in order to be a very successful Options trader your number one goal is you have to figure out where a stock may or may not be headed Because you can't just trade options just to trade options Options are traded off of something and that is typically a stock And if you have no idea where the stock's going to go or may not go Then you have no business trading options That's pure and simple if you want to trade options You have to have an idea of where the underlying security is headed or not headed and that underlying security in our case Is the stock market. So we look at the stocks. We look at charts We look at the stock charts and try to figure out, you know, what's going on So here in the saturday synopsis We try to give you an idea of where the stock market's headed What's been going on some news out there in the world and then we then we try to come up with a game plan All right, so that's what we do Sit back and let me show you what i'm seeing on the charts and what may be coming forward So what do we do number one? We always look at the s and p 500 because that gives us the best overall view of the market as a whole And we use the spy the sp y as our gauge That's the etf the exchange traded fund for the s and p 500 trades just like the s and p 500 And it's about one tenth the size you can trade it as a stock you can use options on it Whatever you want to do. So we look at the the s and p 500 first just to get a general idea What's going on the mark? So what you see in front of you is my chart for you newcomers This is what I look at on a daily basis. I have my chart up here. This is the price action of of the stock or the index It's a daily bar chart open high low close bars. I don't use candlesticks So each one of these lines that you see is one day's worth of trading going back about two years in time Down here is the rsi indicator. It's an overbought oversold indicator I have the 80 level and the 20 level as my thresholds And you can see it oscillates in between those highs and lows And when it gets down to the 20 level or near the 20 level, we have to have a not we get an idea that a stock or index may be Hitting some oversold levels doesn't necessarily mean it's going to turn around and go higher right from there Just means that hey, you know, things are getting a little oversold And when it gets up over into the 80 level, that means things are getting a little overheated The stock may be ready for a pullback or a pause or something And it's a 14 day look back period here right here. You can see 14 and on the chart up here I have three moving averages. I have a 200 day moving average right up here I have a blue 20 day moving average And then this one is the 50 day moving average 20 50 and 200 those are three very widely followed moving averages and and when a stock or index is is moving it will Those those those moving averages tend to act as magnets sometimes you can see Where a stock movement will get rejected or it will bounce right on a on a certain moving average level So we use those as you know, one of our tools to help us decide, you know Whether our stock is hitting some resistance or hitting some support and we use these channels So you can see this inverted V here. These are lines that I draw Myself to tell me which way the market's moving which way that's trending. You can see this long channel right here Where the market from basically october, uh, this was october 2020 right here October november just had this nice slow move up all the way for about a year till october 2021 So what's happening in the market? What's been happening in the market? Well, if you follow the market, you know that Basically in january 1st of 2022. We've been in this downtrend market's been going down basically the whole year We've had some, you know fits and starts it jumps back up And but eventually it has kept falling all of 2022 So where are we now? Well, we've had this nice Inverted V here. We're in the middle of june We finally got a reprieve from the selling went up for about two months to the middle of august and came all The way back down and actually made a new low here. This was pretty recent. This was october 13th I've talked about this in some of my prior videos. This was what I call We had one of these washout days Where the market gapped open lower on the day made this big Move down But finished the day higher so it turned all the way around and finished higher in the day that From what i've seen over the 30 years that i've been in this business When you have a move like that a gap lower pushes lower and then reverses and closes higher on the day That is a pretty good telltale sign that you have at least a bottom You know a pretty decent bottom that's probably in place For the time being and since that day october 13th about a month now We have not yet retested that low So keep this this area in mind. We hit about $348 on the spy And we have not Retested it since you know a lot of people are calling for this is just a bare market bounce. It's going to retest the lows at some point That that may happen. I'm sort of leaning against that And i'll tell you my reasons why number one This was um The market has been Expecting the us federal reserve to raise interest rates and they have been raising interest rates Okay, so the market typically the stock market typically does not like when interest rates rise Because that means people can get better returns on their money from fixed income security So the theory goes people will take their money out of the risky stock market and put it into cds and bonds and Treasuries and all that where they can get a fixed You know a fixed return and as interest rates rise that fixed return gets higher So people want more safety. That's the theory but so we know that the the Fed has been raising interest rates and um, we hit this low and so I just think that We were in the last quarter of the year, which is typically bullish companies Companies will pivot and they'll figure out ways to sell their products. They they know that they're coming into a You know a different environment Depending on people's spending and they'll figure out ways to make money. So the earning seasons Has this the latest earning season q3 earning season, which we're still undergoing right now Has not been that bad except for the tech sector some of these large tech stocks Have been hit pretty hard and we're going to go over some individual stocks But in the meantime, we hit this low and we've just been going up since and now Let's break it down for like the last week or two We had the us midterm elections here Uh on tuesday this past week and what we saw was the market had come down here to make You know, this was so here's friday two days ago thursday Wednesday tuesday so down here we we pushed down Because whatever reason the market wasn't too happy with how the us midterm elections were coming out And it looked like the market wanted to go down right here, but on thursday this week We had the inflation numbers come out And it showed inflation had it was getting better meaning prices were coming down and So people were happy about that because You're led to believe that the the fed in the us will not keep raising interest rates as aggressively as they had then Maybe they'll start to pull back You know smaller interest rate rises or no no rises at all And so that really sparked this bullish move in the market thursday and friday this week. Look at these two days right here Thursday and friday big moves. So here's where we closed on wednesday all the way down here We closed all the way down here on wednesday. Let me open this up a little bit more We closed all the way down here on wednesday and then thursday We gapped up you can see this big air pocket here this white space Here's where we closed opened up here Pushed higher on thursday and even friday On november 11 pushed even higher again. So the spy Finished $398.51 get a little closer here. You can see so we almost hit the $400 level I just think that the bears have been burned a little bit the last two days thursday and friday this past week And had to you know cover their short position So the market is definitely moving up the market has got some upwards momentum here Especially since we got over this 390 level right here 390 was basically on the way down Let me pull this down a little so as the market was coming down here 390 roughly 390 was acting as support Bounced came back down again, but got through it. So now on the way up Showing a little bit of resistance here. You can see these few days here Had resistance was able to get up through it again Come back down had some support here again. So you can see there's support resistance support until it broke through again Now on the way back up this time this little section here 390 was going to once again act as resistance, but this past thursday and friday it broke through it Up to 398. So I just think the market's got enough momentum that You know coming into the last quarter of the year, which is typically bullish You know businesses are pivoting. They're realizing how to how to price their products in you know, this tougher environment And we had this low that was made here Technically this was a a classic You know blow off low It can also happen on the upside but in this case it happened on the downside And we've just powered up since so I think we've got momentum on our side for the market as a whole The sp500 moving up, which is good. Let's take a look at the nasdaq represented by the triple cues the nasdaq has been the weakest of the three main indexes, which is the sp500 the dow Jones and The nasdaq so the nasdaq you can see also here thursday and friday had a had a good day Powered higher, but you know, we were getting back down to these this low here $260. This was that day. I'm talking about that blow off low on october 13th Gap lower went lower and finished higher and started moving up again Retested almost retested the low, but we powered higher So the nasdaq's sort of getting off its butt and we're going to look at some of the bigger Individual stocks that make up the nasdaq to show you why it's been so weak. Let's look at the dow Jones We can use the di a the diamonds. I'll move myself here for a second. So you can see right here di a that's the symbol Okay The dow Jones has been the strongest of the three. Look at this power move higher. Now. You can see we hit a double bottom here Here was that move This was sort of towards the end of september right here And this was that other day october 13th that i've been telling you about so we had a double bottom That's when you hit a same low two times and bounces just look at this incredible bounce that we've had on the dow Jones And here is thursday and friday last week So we've almost come back to touch this last high here in the middle of august if it can surpass this high We'll draw a line here just to you know, keep an eye on things This is the next line in the sand here that high that we hit back in The middle of august. Let's get a straight line here if we can There we go. Um, so the next line in the sand will be roughly what price is this i'm going to take a look here this high was roughly 343 dollars right here this day right here this high So we're 337 and changed so we've got you know a little bit more to go But that could be the next line in the sand for the dow might hit some resistance here because we've come up a pretty good strong way Typically a market has to Regroup itself takes a rest. It's gone up pretty good. So this might be some resistance here for the dow But the dow definitely looking stronger. Let's take a look at some individual stocks and see what's been happening Now we'll go to the nasdaq first because some of these big tech stocks are the things that's been holding the nasdaq back Now this is apple Apple had the v bounce and then the the inverted v drop So it's got a lot of movement. I mean, that's just some big movement for apple up, you know down up down Um, you know 135 on apple seems to be a level that has some some magnet to it It's been catching that level here three times You can see one two three and even back here it was flirting around that 135 level So right now and we're going to draw a line too and drawing some support lines and resistance lines is a good way to Kind of give yourself an idea of where a stock may gravitate towards Okay, and up here was a line that I must have drawn in the past. So it was roughly around 150 Was an area that you can see it stopped here It it moved around here around here a little bit and then on the way down So and you can see it stopped right around 150 on friday right there So, you know between right now 135 150 seems to be that range until we break out And you know thursday and friday was pretty good for apple It rallied almost ten dollars a share over two days. So that's pretty good Um, but but you know, it's it's come down quite a bit. So apple has a little work to do amazon We're gonna look at some of these bigger big tech stocks amazon Where's my amazon here? Okay amazon Uh, you know the amazon the tech big tech earnings came out roughly, you know two weeks ago or so Maybe a little earlier in um later in Middle of october third week of october. So it's been a few weeks now You can see the big gap down here and it just powered lower new low right around 85 86 dollars for amazon fell through this hundred dollar level the support level that we drew earlier So the hundred dollar level will act as right now some resistance. Maybe it's around 102 dollars Let me see what got here. This is about 101 101 50 160 so right under 102 dollars. That's the that's the Resistance line now you can see before it acted as support one two three four five six Almost seven times it bounced and now as it broke through Now the 102 101 and change is going to act somewhat as resistance For the mean in the meantime if it breaks through there and goes higher and then it'll just keep powering higher It's got the 20 day moving average here 50 day moving average here. Those will be the next areas of of resistance But it had a nice turnaround Thursday and friday this week, but amazon still it got hit pretty hard Let's look at google because google got hit pretty good too amazon google um facebook meta Apple the fang stocks all got hit pretty hard. That's why the nazak has been down so much same thing google just had this Nasty move down since it released its earnings below 85 dollars And you can just see this big move down So we had draw this line before this support slash resistance line right around, you know 102 as well and um You know, it's trying to get back up there. So amazon google apple let's look at meta Slash facebook same thing these these four tech stocks You know comprise a huge part of the nazdaq. So when these stocks move The nazdaq itself is going to move as well. So here's meta was in this channel and then just Started crashing down and had the big gap lower on its earnings Got down to let's see what the low here was 88 41 88 thousand 41 cents But it's had the little move up recently because the rest of the market's been moving up It's tagging the 20 day moving average line right here It's getting into some oversold areas. So these biggies now netflix, which is also part of that Fang group actually has been doing a little better We had 250 dollars as the resistance line right here this long line It was in this channel and if it could blast through 250 it was going to go and that's what it did here You can see rally all the way up over 300 dollars a share this move right here came back down To test once again the 250 level just this week And bounce there is ain't friday. So netflix looking good bounce down to this support here 250 And moving higher closed on the high of the day You can see that the little dash mark on the right side of the bar Little teeny dash mark is where it closed for the day So the close is very important because that shows you where all the momentum is So netflix seems to want to get itself in gear still has these big gaps A lot of a lot of room to go all the way back up to the highs of 700 dollars a share But it looks like it's you know starting to do its thing So the nasdaq a lot weaker than the dow and the sp500 But but there's a point where stocks just come off too much. They just they just get too cheap You know big players will find value in these stocks Even if even if everyone thinks we're you know, this is just a bear market bounce You know we go back to the spy a lot of people are saying, you know, you're getting another chance here You're getting a second chance or a third chance sell your stocks now Because this is just a you know a bear market bounce and we're going to drop again down to the lows Do I think that's going to happen? I don't really think that's going to happen I mean we can always pull back, but I don't think we're going to test this low here at the 348 number There's been a lot of momentum so far. We were in the bullish fourth quarter of the year Earnings are still pretty good for a lot of companies and the market's come off a long way You know people people want to get in There's a lot of people sitting on the sidelines a lot of dry powder So people are starting to buy up a little bit Considering that these inflation numbers starting to come down a little bit So we'll see what the Fed does at their next meeting, but anyway Things look pretty decent overall for the general market. Let's look at some other stocks Now remember if you're playing options contracts, you need to have a gauge of where do you think where you think things are going? In our newsletter, we sell put options, which is a more bullish strategy. This is Nike Everyone knows Nike. It's a stalwart. It's a name brand One of the best brands on the planet just been coming down just like the rest of the market since the beginning of the year coming down coming down coming down We had sold the put option because we I saw some bullish activity down here And uh, it's been working out for us. Look at this big move last thursday and friday Big move for nike rallied over Closed down here is wednesday So it closed right around 92 dollars and finished yesterday at 106 or friday at 106. So rallied 14 dollars That's a big move for nike work for us When the stock market goes up or the stock goes up that helps our our put selling position So we're doing pretty good on that. So that's nike nike looking pretty good here. What else have we done? Let's look at some other big stocks Um, let's go to the list here Let's go down this list microsoft microsoft is also part of that that that nasdaq list that got microsoft got hit pretty good after its earnings But his rallied back pretty good So it's still in this downtrend but looking to looking to move up here All right, uh, keep an eye on Microsoft intel starting to turn up. So the tech sector the the i'm sorry the chip sector amd is one of my favorites We just put out a play on amd On friday can't tell you what the exact trade is because it would be unfair to our paying customers But just know that we've got into a naked put sell on amd and you can see the power move higher That's a good move for us. That works for us amd. Maybe finally Finding a bottom here. It hit 160 came all the way back down to under 60 Maybe finding a bottom here. We're taking a stab amd like the chip sector Um intel is also part of that sector, but it's not a big a player as it used to be So i'm not that big of a fan of intel. I like amd better also Nvidia another Big chip player if I can get the symbol right here Nvidia bouncing off the lows went down to about 110 now. It's back over 160 So that's a big move for invity, but still you can see the general downtrend micron another chip stock Has it has had a nice move. Okay Rounded bottom here big move higher still in this downtrend But has gotten got bounced out of the downtrend You can see the upper leg here of the channel moved above it So that's a good sign. We like that. We like when stocks move outside of the channel Because now a new trend may be emerging. So you have to look for these things. Let's see what else we've got other big stocks oracle It's had a nice bounce off the bottom here Now another thing I want to bring up is what's called the w pattern You can see the w pattern on a lot of different stocks if you can just envision this w right here As you follow my mouse, there's a w Okay, and when and when the stock moves above the middle part of the w which was Right about let me get the line here, you know, right about here roughly Okay, then you can start to see some good bullish activity So you got the w and is once it moved above the midsection here Maybe 67 dollars. Look at his power higher So the w pattern is something to keep an eye on it's a bullish bullish pattern Especially when it's coming on the lows when you have a stock that's been moving lower And you're on the low area and you see a w forming. That's usually a pretty good sign. Also We've got Warren Buffett the Berkshire Hathaway Class b shares you can see this larger w here, right? You can see the w forming and once it gets getting above this midsection right around 307 308 maybe That could be the point where it could really get to go You can see here thursday and friday So it got above closed above this mid midline right here and it's gotten above the 200 day moving average again It's also above the the 20 day and 50 day. So Berkshire Hathaway looks like it's got clear selling maybe to take out 360 dollars, which is the the previous high I like this pattern here. There's w pattern If the rest of the market keeps going Berkshire Hathaway is going to keep going as well, which brings me up to my next point You go to our website smartoptionseller.com We have our free ebook on how to sell put options and what put selling is all about put selling basics ebook right here Go to our website. Click on the put selling basics ebook Scroll down put your name and email address in here. We'll send you an email It's got a link to the free copy. It's all about put selling why we love put selling and why it's One of the main gigs that we do. I love put selling. So that's what we do Also about Warren Buffett. If you go to the more tab here Um, actually, I'm sorry services tab. We have our two newsletters here And if you click on the shop link It's going to bring up this report that I wrote Uh about another option strategy using Warren Buffett as our Way to use the strategy And and writing the coattails of Warren Buffett and how to buy him for pennies on the dollar It's how to piggyback Warren Buffett. It's not free But you know, if you're interested in a different strategy on how to you know, take advantage of of you know The oracle of Omaha as he's called We all know Warren Buffett one of the most successful investors of all time If you want to piggyback him for pennies on the dollar think about taking a look at that. Okay, so Here's the Berkshire class class B shares trading around 309 and change Could be could be ready to keep going and also once again, we were talking about the w pattern. Let's look at some other stocks here What else we got Proctor and gamble Walmart we always like to talk about, you know walmart the biggest physical retailer on the planet I just shopped at walmart yesterday how to buy some stuff, you know walmart is good for cheaper prices You know things have gotten really expensive And in you go where your dollars treated best and if you can get better deals you go for it At least that's what I do. I don't have a problem shopping with walmart. I love the company I love the stock and walmart's just been in this nice uptrend since the summer Okay, so walmart's looking pretty good We're coming into the holiday season and you know, they're going to be selling a lot of stuff So we'll see how they do in the first quarter of the year when earnings come out That includes the holiday the holiday season Disney another Name brand that everybody knows and loves disney got hit pretty good this week had earnings had the big gap down Had fallen through the hundred dollar level Fell through $90 I have some shares of disney that i'm holding for the long run probably should have bought some more here But I didn't I was waiting for some more follow through to the downside, but it bounced back just like everything So maybe keep an eye on disney for the long run for those of you who like disney what else tesla Let's talk about tesla. Oh my gosh And we all know that elan musk has finally taken over twitter twitter is no longer a publicly traded company Um, I don't know some stuff's happening at twitter. Who knows if it's going to be able to Survive But tesla in the meantime has been falling lower Falling lower. It was trading around that 300 level for a period of time and it's just just dropped dropped under this last support area of 200 You know 12 dollars or so and down to 180 Who knows what's going to happen with tesla. It's hard to get a gauge people love tesla But but you know with elan musk selling 44 He bought twitter for 40 Was it 44 billion dollars? He had to sell a lot of some of his tesla stock not all the stock, of course He's still the richest man on the planet, but um, the tesla stock's been going down And that's because of what happened with twitter. I believe so I really don't have a have a say on You know which way I think tesla's going. It's just a crazy stock. It's a lot of gyrations, but you know, some people love it I don't really have anything to offer as far as which direction. Um, let's look at healthcare stocks Is also been pretty good. Uh, here's elai lily. Here's the symbol lly elai lily just been going up Let's look at johnson and johnson I'm just kind of hanging around the middle not really going up or down murk I've been going up Going up over, you know bottom left to top right that just shows you a stock's been going up um fizer You know, these are the big healthcare stocks that we watch Um, just kind of meandering around like like johnson and johnson and what's our other one Bristol mires bristol mires bmy You know been moving up too hit. I think this was an all-time new high here. Let's see if that was an all-time new high Let's go to the monthly chart Yeah, all-time new high above 80 dollars just this week alone So the healthcare industry pharmaceuticals I love the sector if you want to get them all in one shot You use the x lv x lv right here Um, you know kind of meandering, but if you want to get all these in one shot you get into the x lv We have sold some put spreads on the x lv, which is a bullish strategy Um, we've we've done that a couple times in our spread newsletter. So that's the healthcare industry. What else we got? Verizon is also a stock that I always keep an eye on still not ready to pull the bullish trigger yet on Verizon just keeps going down Kellogg is another stock that uh, I I've got an eye on here Going up pretty good, but then just just the last two weeks. It's falling pretty good Fell below the 200 day moving average. So I'm keeping an eye on Kellogg for a possible bullish opportunity here Maybe sell some puts on Kellogg PayPal and square The payment sector maybe they're finally getting their act together Scraping along the lows here, but you can see the downtrending 200 day moving average and the 50 day and 20 day They're all Starting to converge here if PayPal can get above around 100 dollars a share It probably can start the the next ascent higher. It's come down a long way. Let's look at square Same industry online payments same thing all the way down Scraping along the lows now. It's had a pretty good last couple days got the 200 day moving average here. So PayPal and square need it's got some work to do but could be coming to the bottom Could be finally seeing a bottom there Keep an eye on that that industry Costco Um, just kind of me entering around McDonald's just been a strong stock Look how it bounced off 230 went all the way up to 280 Doing pretty well overall still moving up in the general direction. I also like pepsi these McDonald's and pepsi Two good dividend paying stocks if you hold for the long long run, it will reward you bottom left top right Pepsi still going up comes has a lot of gyrations, but still moving in that general upwards direction So you want to look for some good dividend paying companies as well What else we have? Home Depot Moving up IBM moving up pretty good Google we looked at clorox And Colgate, you know, these are your these are your home goods companies Products that we buy all the time colgate and clorox make all those products Oh coca-cola always want to bring up coca-cola Had the nice low here got oversold on the rsi Bounced and coming up to resistance on the 200 day moving average if if coca-cola can get above 62 Should be good to go And make a run at new highs all-time new highs again So coke bounced pretty good. And the lastly we have conhead And we'll look at southern company utility companies utility companies usually do pretty well Um, I've been moving up but had this nice move down nice move down Had a double bottom on the rsi here bounced right here you can see And I got I bought some shares on the lows here and it's been moving up pretty good southern company It's another utility. We actually sold some puts on southern Recently, I feel that it just came down way too far got oversold Sold some puts waiting for the bounce. So it's me entering around sideways actions Is just is just as good as upward movement when you're selling puts because of that time decay So we like to sell puts after a quality stock has moved down pretty hard And um, and then you know if it gets oversold it's going to bounce which is good timing for a put selling position So that's really about it. So all I've got let's go back to the spy real quick one more time Get some action plan Um moved good moved good above the 390 level close at 398 and a half I like the momentum that i'm seeing this week. Um, you know, it should be a status quo week These mid-term elections are are mostly over and figured out And um, you know, we don't have any major reports coming out this week I don't think that should really push the market one way or the other. So we've got this bullish momentum Let's see if it carries up to at least the 200 day moving average this week, which is around 407 dollars. So that's another eight and a half dollars or so Um to hit that could be done this week So keep an eye. I I think you know the bulls just have control right now Other people are saying it's a bounce sell your positions because it's going to fall back down again I don't think that's going to happen before the end of the year And it may not happen at all. This may be the low for good for a long time the 348 number. We'll see You know, nothing's guaranteed. I want I don't want to put anything out there as a guarantee 100 But I do like this momentum. So I think the s s and p 500 is um, you know It's got more upside momentum than downside at the moment. So we'll see all right That's all for me. Don't forget to go to our website. Get the free e-book report Take a look at that Warren Buffett report as well. Give me a thumbs up in this youtube video I try to make these free videos try to help you see what I'm seeing using the charts as a way to Get into and out of trades, especially your options trades. You got to know how to look at the charts Um, you send me an email leave me a comment. I'm always here to answer and so next week here in the us is We've got Thanksgiving holiday coming up pretty soon. So we'll see hopefully if I'm around next Saturday I'll make another video if not, you know soon enough after that. All right, everyone I wish everyone a good weekend and have a great trading week ahead. This is lee lull signing off