Hey, all right, everyone. Lee Lowell here, smartoptionsallow.com. How's everyone doing? Today's Saturday, June 4th, 2022. Yeah, we're moving on, got into June. What do we do here? We are at the Saturday synopsis. We look at charts. I look at charts. I show you what I'm seeing in the market and show you what I've been doing for basically the last 30 years in the market. I'm a technical analyst. I look at charts, chart reading, that's how I get into and out of my trades. There's technical analysis and fundamental analysis. Fundamental analysis is when most people look at the underlying data of a company, the sales, earnings, revenue growth, PE ratios, dividends, all that good stuff. To me, that's all good and all, but I like to use technical analysis, which is looking at the charts because I always believe all that other fundamental data has already been parsed through and known by the rest of the investing public and it gets reflected in the charts. So I don't need to really look at both. I just look at the charts. And the charts tell me where the markets and the stocks wanna go. So that's what I do. So I'm here on these Saturdays to give you an idea of what I'm seeing in the markets and what I see coming forward and what we can do or what I can do to help you try to up your game. So let's just jump right in as we do every Saturday or most Saturdays in the Saturday synopsis. So let's open up. We always look at the broad markets first. The broad markets are the S&P 500, the Dow industrials and the NASDAQ. That pretty much encompasses almost all stocks or a good majority of stocks. But I like to look at the S&P 500 because I think that that index really gives a pretty good gauge of the market as a whole. And I like to use the SPY, which is the exchange traded fund that represents the S&P 500. Trades like a stock, it's got options. It's great, it's liquid, lots of volume. Bitass spreads are real tight. So that's why we like to concentrate on the SPY or the SPY. And give a look at it to just get a gauge of where the market is heading. Okay, so we look at the SPY first and let's just talk about what we've been seeing. Now, if we wanna go back on a longer-term basis and let me just tell you what I'm looking at here on my chart, on my screen here is I look at daily charts. I'm not a very, very short-term trader. I don't trade intraday like that, it's just too hard. I focus on the long-term. So that's why I like to look at daily charts. And this is a bar chart. So each line here is one day's worth of trading. You can always parse it down to one minute charts, five minute charts, 60 minute charts. I have all those on here as well. Sometimes we look at those. So I look at the bar charts on a daily timeframe. So this is about two years' worth of information here on the screen. I'm very simple. I have three indicators. I have three moving averages, which is a 20-day, 50-day, 200-day, all simple, not exponential, all simple. And down here is the RSI, it's an oversold, overbought indicator with my 80-level and 20-level as the overbought, oversold levels. But basically we concentrate on the price action. The price action tells us where the market or the stock wants to go. What does that mean? The price action is just the general direction of where prices are moving of that stock or index. Obviously you can see here, let's go back to the COVID low, back in March of 2020, and the market has just been on this nice up, beautiful uptrending run since then. Had a little bit, we have pullbacks along the way. You can see you got pullbacks and we can draw some support errors. But when you have a nice trending market, the 20-day moving average and the 50-day moving average will pretty much contain most of that action. When you get a pullback, it'll typically pullback to the 20-day or 50-day when you have a nice uptrending market. And then you finally get some pullbacks, larger pullbacks. And then you have to start looking at whether the market is making new price action. So as we finally got to the beginning of 2022, right around here, we have entered this sort of bearish market. More bearish market, I'd say, contained within the longer-term bull market. You'll always have pullbacks along the way in any kind of market. And then in a downtrending market, you'll have up moves as well. That's what we have right now. So the SPY was on its merry way until we hit January of 2022. And then we've been caught into this, five months, almost six, well, five plus months now of this downtrending choppiness, rough-to-trade type of stock action, okay? Basically, the news headlines that I talk about this usually every weekend is that, in February, Russia invaded Ukraine. We've got the highest inflation here, at least in the US in the last 40 years. Everything costs more money and everyone is feeling it. Gas prices, food prices, car prices, anything that you buy basically is costing more money. And that has people on edge because the US Federal Reserve, in order to combat that inflation, they have to start raising interest rates. And they're starting to do that. And interest rates is typically not a good thing for the stock market. People, investors think that once interest rates go up, they can get a good, safer return on their money by investing in fixed income securities than investing in the stock market where we know there's no guarantee of a return. So typically, rising interest rates is not the greatest thing for the stock market. So that has people on edge. Things cost more money. We've got the war on Ukraine, which is causing global shortages of a lot of things, a lot of food items. And COVID's still out there. And so people are just nervous and they're scared and they just don't think that the stock market is the right place to be right now until a lot of these big news items subside. So we have this downtrending sort of market since January where we have these up moves and then it comes off again, the up moves, and then we got a bigger up move here. And then the market has just been since April and this downtrend. So it's been a tough market to invest in, I'd say, since January 1st. Everyone is feeling it. Don't think like you're the only one. If you're investing for the long run, which is what I do, yes, obviously the last five months has not been great for your portfolio. You don't want to open up your brokerage statements, your 401k, your retirement statements, because all you see is your balance going down. But in the long run, we always know that the market finds its way higher. You just have to look at history to see that all along the history of the market, which this goes back to the early 1990s. Of course, the stock market's been around longer than that. The market has just been going up. And this is during periods of, there's always gonna be bad news stories out there, but the market shrugs it off over time. Why? Because the market is still a place that holds companies that make profits quarter after quarter. When you have a company that is growing and increasing their profits over time, there's no way for their stock price to go down. So the S&P 500 is made up of actual companies, and these companies are making profits over the long run. So you have to have a longer term mindset.  We're gonna dial it down here. So last Saturday, when we were here, this is where we were. Let me scale back a little bit before we saw this week's activity. So right around here or so, I said that last Saturday, we're in this nice little downtrend. You can see the channel and I draw these lines. These aren't lines that just magically pop up on my screen. You can draw these lines to form channels to tell you which way the current price action is showing. You can see here, here, here, here, and here. It just gives you a gauge of which current direction the market is in. So we had this downtrend here, and I said if the market could break out to the outside and upwards of the downtrending channel, that's a better scenario because it gives people hope, it gives investors hope that the market is starting to move on the next leg higher. So this week, I'll just pull out here, we had a very, very, very tight week right here. This was all the action right here, this whole week. Now the good thing is that, yes, this action has now popped out and above the downtrending previous channel right here, which is a good thing. But we haven't had this small of a range in a while. This is, we had a lot of chop this week. Chop means prices just go back and forth up and down and stay within this very small range. It's a very hard price action for shorter-term traders to trade in. You get chopped around a lot. I got emails from people this week saying, I just got beat up real bad this week. You got short-term traders who, and I wrote about this in my newsletter, is that people end up revenge trading this week. What is that?  You have getting angry trading and revenge trading and you try to take bigger positions because you need to make back the losses and you end up at the end of the week with a really bad week. You've lost a lot of money because of this angry revenge trading. That's what a choppy market can do to you. What we like to have is this nice, slow up-trending market. It works for long-term traders as well as short-term traders. So this action right here was very tight, very short this week and we may be starting to get into those summer months. Summer months are a lot quieter for the market. So we had shop this week but the good thing still is that we had, we bounced off the low here. We bounced up, got so far outside of this downtrending channel. What I would like to see is for the market to start moving higher again. I said last week the next line of resistance is the 50-day moving average right here which we weren't able to touch this week so next week the same thing. I like to see market moving higher and at least try to hit this or take out and move above this 50-day moving average. This is the next line in the sand right here. Once again, we could start to sell off. I mean, that's the way things have been going. All these rallies have been sold off.  I thought this was the move here and then it started to come down again. So it stays within the channel, rallies jumps down, rallies down, rallies. So we have to see what happens here. We had this week right here of trading. Will it keep moving up or will it get knocked back down? Yet to be seen, there's still a lot of back and forth. The bears aren't ready to give up yet. The bulls want to get this thing going. We've come off quite a bit. So that's the SPY had this tight range here. Maybe we'll have tight range again next week, but I'd like to see at least the market shoot for this 50-day moving average here. The RSI is right smack in the middle of 50. There's no overbought or oversold. So there's nothing to really say the market's overbought, the market's oversold. That's also why we may have this chop here because the market's really not doing anything. We're just kind of waiting for some of these news items to subside and work themselves out. So we may be in this period of just sideways action, summer doldrums. So right now I really don't have much to predict or say other than I'd like to see the market go higher because I have investments too, personal investments. And I want the market to go up. So that's what we see there. Let's look at the NASDAQ. We use the Qs, the triple Qs for that. They're all gonna have the same patterns. You got these down channels, steep down channels. Same thing here. We popped out and above the down trending channel over the last week, basically. Chopping is tight range. We haven't had a tight range like that in a while. That makes for hard trading. So that's the Qs. We can look at the Dow Jones. We use the DIA, the diamonds that they call it. The Dow has not been as chopped, I shouldn't say, hasn't been as sold off as the NASDAQ and the S&P 500, holding up pretty decent. Still you can see the choppiness right here of last week's trading. So the Dow kind of trying to hold this line, the sand here, this was the support fell below it. But you can see obviously if we were to extend this line it would just go right through that price action from last week. So that's the Dow, the DIA. So the three big indexes are just kind of caught in this choppiness, trying to get above their moving averages that are sort of sloping downwards. We don't want sloping downwards moving averages because that just tells you that the price action has been downwards. Once the moving averages are starting to slope upwards, it gives people more hope that, hey, the market's in an uptrend. Let's keep it going. So anyway, we're kind of sideways choppiness and all we have to do is see what next week brings. All right, let's start to look at some individual stocks. As we always do, we look at the biggies, we look at the popular names. I don't have time to go through 3,000 stocks here. So we look at the big names, Apple just, it's almost like a mirror image of the indexes. Got caught in this downtrend, had had big support around 140, fell through it about two weeks ago, popped back above. You can see the action was popped outside of the downtrending channel. So we're right around $145 a share on Apple, had a good week, pulled back a little. So it's just kind of hanging around 145-ish. Maybe it'll bounce along with the rest of the indexes and start to move higher next week. But this 140 line right here still seems to be a decent support line going back at least a year in time right now, 140 level. So the next time it falls down there, maybe it'll get another pop-up again. So that's Apple. Let's look at Tesla. Elon is always in the news. Yesterday came out that he's gonna freeze hiring and lay off 10% of his staff because in quotes, he feels uncomfortable about or something doesn't feel good about what's happening or something like that. I don't remember the exact words, but he just has a feeling that something's not right. And so he's laying off 10% of the staff freezing hiring. I guess that's how his management goes. But anyway, Tesla still falling on the $700 level support line that we drew. I don't know when we drew it, but this is the line in the sand. It fell through it just towards the end of last week's trading or sometime during last week, pop back above it, but you can see yesterday, this is Friday, this bar right here is Friday, June 3rd, came back and settled right near the support line. So $700 seems to be that line in the sand right now for Tesla. There's a lot of things swirling around Tesla and Elon and the whole Twitter deal and all that. Don't know if the Twitter deal is gonna come to fruition or not. But Tesla is a hard stock to trade. It could have nice moves and then it just jumps. It's very volatile. I stay away from Tesla. I just can't trade it. It's just too crazy for me. But let's look at Twitter because that's the other part of Elon's deal here is he wants to buy Twitter. Here's where he announced it at $54 a share. It bounced up this day. And then his news started to come out that, hey, he's not happy with the amount of bought accounts, these bought accounts at Twitter, which really are not controlled by a person, but by a computer program and Elon saying that he's not getting the right accounting for how many bought accounts there are at Twitter. So he doesn't wanna go through the deal until he gets the correct information from Twitter. So the stock starts to fall down and now it's right around $40 a share. So who knows what's going on with Twitter? It's too, when you have a pending deal and a pending deal that might not go through, it's very hard to trade this thing because you're not sure if it's gonna go through or not. So we stay away from that. Twitter, let's look at Amazon because Amazon's gonna trade post-split come Monday. So it's gonna be trading, somewhere in the low $100s, $120 a share, they're doing a 20 for one split come Monday. So as of now, Amazon, did I say Twitter? Amazon's having a, you know, their 20 for one split that they announced months ago that starts trading this Monday, June 6th. So you're gonna see a much different price for Amazon come Monday, 20 for one split. So it's gonna be roughly, let's see, I'm not sure what price they say it from or it gets split from. So if it splits right from Friday's price of 2447 right here, you know, you divide that by 20, you got $122 a share roughly. So Amazon, you'll see, is gonna start trading at $122 a share. Doesn't mean the nothing's changed about the company at all. It's just that the price is different. So it makes it more attractive for smaller retail players.   Now the stock is gonna be trading at $122. So it makes it more accessible to more players out there in the market. Players that might not have as much money, but now that it costs $122, they can buy more shares. So what stocks can do is drive more interest in the company because more people are open to trading it because it's cheaper in dollars. Doesn't mean that anything's different about the company. It just becomes more accessible to smaller traders. And that could potentially drive the stock price higher because you got more people buying the stock and all that demand could drive the price up just because the stock has gotten cheaper. So look for that. On Monday, you'll see a new price for Amazon. I don't know how it'll affect the charts here. We'll see, but you know, Amazon was also caught in this downtrend. And you can see, we talked about this. You had this W pattern. W patterns usually work pretty well as a bullish pattern when they're coming at a low point. When a W pattern is up here, like on a high, it's not as reliable, but at a low price, you can see it looks like a W. And once it passes the middle part of the W threshold, it can typically move higher. How long at last? I don't have the date on that. I just know that when a W pattern starts to form, you can try to get long once it passes the middle part and you can see it's been playing out. Where Amazon goes from here yet to be seen, it's gonna follow the rest of the market. So that's Amazon. Let's look at AMD. AMD, one of my favorite stocks. And I got a lot of lines drawn on here. AMD still sort of in this longer term, downtrending channel, I had written that $100 a share was a line in the sand for a long period of time. Right here, which was back in early April, I had been buying in the low 100s, trying to catch the support. It fell through it. And I said the next line in the sand was the 85 to 90 level. Because you gotta look back in the past to see where the next support area is. And it bounced right around that 85 level and had a pretty good week. It has now bounced outside of the downtrending channel. You can see these last two days, Thursday and Friday, it bounced outside of the downtrending channel. Support now again is probably back at $100. The first line of support and the next line of support is back down here at 85. So AMD had a pretty good week. We got into a trade in our newsletter. We sold some put options on AMD. Got a lot, a lot of cushion. What I've been saying is in the market here for the newsletter, most of our trades are bullishly oriented trades. And so when the market is telling us it's in a downtrend, it doesn't really make sense to put a lot of capital at risk. So we've been really light on our positions. And the only positions we're taking is if we get super, super amounts of cushion. What does that mean? Well, if you're interested in selling put options, what that means is that you're gonna pick a strike price and sell that put option well below the current price of the stock. So with AMD over 100, we're looking at more than 50% of cushion. So our strike prices are way down here. We're collecting this good money and we're obligating ourselves to buy AMD for well over 50% cushion. Now, if you don't really understand what that means, let's, you can go to our website, smartoptionsseller.com right here, this is where I'm calling, I'm talking to you, smartoptionsseller.com, that's our website, Put Selling Basics, that's our free guide, the free e-book that I wrote, go to our website, click on Put Selling Basics right here along the header line, you'll come to our page, you can put in your name and email address in here, we'll send you a free copy and this little box appears all over our website. So you don't only have to go to this page, look around our website as well. And while I'm here, our services tab outlines are two newsletters, we sell naked puts and we sell put option credit spreads as our newsletters and we have our one-on-one coaching if you need more information. So that's what we do on our website, our services, we have newsletters. So we're more bullsly oriented trades, selling put options and selling put option credit spreads are bullsly oriented trades. So we're waiting for the market to tell us it's a much safer environment to put trades on and while the market's going down, it doesn't really make too much sense for us. So we sort of stay out unless we get lots of downside cushion. So AMD, I'm waiting, we have this nice break here, so hopefully it'll keep going. Now NVIDIA, another player in the chip space, AMD NVIDIA and Intel for me is not really a major player anymore. So we have NVIDIA which has gotten knocked down pretty good too, you can see just this big downtrend just like everything else. But we got into a put option credit spread on NVIDIA this week as well. I feel like we've sort of turned the corner here and we got some decent cushion on NVIDIA as well. So we just don't want the stock to drop really far anymore. It could pull back a little, it could go sideways, it could go up, doesn't matter. We can win in all those directions. The only bad thing is that we don't want stocks to drop really far, really hard, really quickly anymore. So that's what we're banking on. We give ourselves lots of cushion. So this is NVIDIA, it's just like any other stock and index. It's been in the downtrend and we want the market to move back up again. What other stocks we have? We look at Disney, we look at the stalwarts, we look at Disney. Disney, I mean everybody knows Disney. I've been buying some for my long-term portfolio, have been buying around the 130 level. Obviously it's shot right through that next line of sand here seems to be the 100 support level. So if you're looking to hold a quality company for the very long-term, for me, that's why I've been buying Disney. It's not any advice here, I'm not telling you what to do but Disney in the long run is a great company and I think it's obviously it's gonna go back up. So that's why I've been buying. Same thing with Nike, another stalwart, brand that's known around the world, getting hit has been getting hit. So this is Nike, went from $180 a share, almost down to 100, that's a big drop. Let's take a look at the monthly chart of Nike. Let me move myself over here a little bit. Nike monthly here, so here's the monthly chart of Disney. I mean, it just looks great. Look at this big pullback, pullback to the 50, this is the 50 month moving average. So whenever you change from a daily to weekly to monthly, it's called the 50, this is the 50 period moving average. So whatever chart you're looking at, this is the monthly chart. So it's now a 50 month moving average. Maybe finding some support right at the 50 month moving average here. So that's Nike, you know, great company. Obviously, as it's moving down, I'm nibbling, I nibble to buy more shares on the way down on quality companies and I'm not just buying companies because their prices are going down. I'm using select companies that I think in the long run are going to move back up. So that's Disney. What other stocks? We like to look at Warren Buffett, the, his Berkshire Hathaway company, because if you wanna follow Warren Buffett and what he invests in, you might as well just buy his Class B shares. The Class B shares are $310 a share. The Class A shares are hundreds of thousands of dollars. Let's look at the Class A shares. So here's the Class A shares, $467,000 per share for the Class A shares of Warren Buffett's Berkshire Hathaway. So that's why he created the Class B shares so you can buy in at a lot cheaper, $310 a share. Been pulling back right here. This is the 200 day moving average. It's just a nice clean chart and it's finding support right at the conjunction of here, the 20 day moving average and you have the 200 day right here giving some support. So, and also once again on our website, I've talked about this before. We have our Warren Buffett, the e-book that I wrote about how to piggyback Warren Buffett, the secret to buying Warren Buffett for pennies on the dollar.  So, it's an option strategy that I wrote about on how to piggyback Warren Buffett by using a ton less capital and getting so much better return on your money. So if you're interested, take a look at that. What other stocks we have to look at here? We like to look at the healthcare stocks as well. Where's all my healthcare stocks? We have Eli Lilly as trades in a pretty big range but finding some support at the 20 day and 50 day Bristol Myers, all the healthcare stocks over the run has been going up. Pfizer's sort of trading sideways here, Merck also on this nice uptrend. And then the XLV, I like to use the XLV, it's the ETF exchange traded fund for the healthcare stocks. So it's been sort of in this choppy range. We sold put options on it or put options spreads. I like the healthcare sector. Everyone needs healthcare, everyone needs prescriptions, everyone needs to go to the store and buy their over the counter drugs, whatever it is. You know, everyone needs healthcare in their lives. So that's why I like the healthcare stocks but the XLV is the way to get them all in one shot. PayPal still hanging around the Lowe's Square, which is the other online payment company. PayPal and Square, the two biggies are still kind of hanging around their Lowe's. I'm not doing anything with those right now. Netflix also hanging around the Lowe's. Is Netflix gonna be able to move back up? I mean, maybe in due time, we have no position in Netflix right now. It's just taking quite a beating. Same thing with Facebook, has been taking quite a bit of a beating, still kind of hanging around the Lowe's. So we're not doing anything with those companies. Oh, Walmart, we love Walmart or I love Walmart. But Walmart, Target, Costco, all these big companies took a big hit of late because earnings, their earnings were not great. So Walmart, just this waterfall, just massive amounts of selling got way oversold on the RSI. I had bought some just because of that alone, just such an oversold chart. And because Walmart's a great company, biggest physical retailer, biggest employer in the private sector, in the US at least, maybe around the world. So this was just too good to pass up, had to buy some. That's Walmart, but you can see it's pulled back a little bit as well. But I know in the long run, Walmart will go up. Target also got hit. This is Target, Target got hit pretty good. Their earnings were not that great. Costco, same thing. Bulk buying company, buying in bulk for your products. Got, has been hit too, but had this nice bounce. Got oversold on the RSI once again. Nice balance, this happened to us back in right around the pandemic. Costco, where is my March of 20? Where is that here? Costco got hit, yeah, right. Am I looking at this right? Yeah, it looks different. Okay, I'm sorry, Costco right here was oversold in March of 2020, bought there. And then once again, here's where it is now oversold on the RSI and getting bought up. So that's Costco. Coke, we also like to talk about Coke. Just another stalwart. It has done very well throughout the pandemic, just been going up, up. Here was a nice move down just this last two weeks. I was hoping to get it on the 200 day moving average. Didn't fall far enough and it bounced right back. Hanging around the 50 day and 20 day. You know, a long run Coca-Cola is a great company. So if you're, if a long-term investor like the dividends, Coke is a great company. I think that's about it for now. I don't look at, even though I have GameStop and AMC, I don't pay attention to those anymore. The Bitcoin stocks right in Mara. Don't really pay attention to those anymore. Right under $7 a share. Mara under $10 a share. You know, nothing for me to really look at there anymore. Just going through my list here. I think that's about it. I think that is about it. Oracle, we have a put sell position on, just biding our time, biding our time. And Intel, don't really look at Intel anymore. Microsoft, that's in the downtrend too. So just like most other stocks, a lot of these charts look the same. All right, let's wrap it up here. Let's look at the spy one more time. Once again, what are we looking for? Well, we had a lot of CHOP this week right here. Could be more CHOP next week or into the summer. I obviously wanted to go higher, but the way the market's been going, a lot of these rallies have been sold. This could be sold off again too. Just never know. We need some of these news stories to start winding down. All right, so that's it for the market assessment. Once again, we can go back to our website, put selling basics, get your free copy, email me, tech email me, questions that you have about anything. If you like this YouTube video, please give me a thumbs up, leave me a comment and you know, that's it for me. I hope everyone has a good weekend and a great trading week ahead. I'll try to see you next Saturday here. Okay, this is Lee Lowell signing off.


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