Charles Schwab Horizontal Resistance Break, Dark Pool Buying

  • Post category:Dark Pool Stocks
  • Reading time:4 mins read
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Charles Schwab SCHW stock confirmed a break above Horizontal resistance on July 3, 2023. The stock is in a technical downtrend.

SCHW stock chart on July 4 2023 with a horizontal resistance break
SCHW stock chart on July 4, 2023, with a horizontal resistance break

Charles Schwab is a financial services company that provides a wide range of investment and brokerage services. The company offers investment services such as online trading, mutual funds, ETFs, retirement planning, and wealth management. Charles Schwab also provides banking services including checking and savings accounts, mortgages, and personal loans. Additionally, the company offers financial education and advice to help individuals make informed investment decisions.

Charles Schwab’s net new assets in May 2023 totaled $24.6bn, a decline from the same month last year but a significant increase from April’s $13.6bn. The number of active brokerage accounts increased by 63,000 in May, while total client assets grew for the third consecutive month to $7.65tn.

Dark Pool Trading In SCHW Stock

SCHW stock chart on July 4 2023 with dark pool trades shown with orange bars
SCHW stock chart on July 4, 2023, with dark pool trades shown with orange bars

The dark pool buying on June 30, 2023, looks like buying because of how SCHW stock rose after the prints hit the tape. We also see that the dark pool buying occurred after Charles Schwab released its annual bank stress test.

Charles Schwab Stress Test

The results of the Federal Reserve’s 2023 Comprehensive Capital Analysis and Review (CCAR) were delivered to Charles Schwab on June 30, 2023. For the nine-quarter period beginning December 31, 2022, and ending March 31, 2025, these results included the Federal Reserve’s estimate of Schwab’s minimum capital ratios under the supervisory severely adverse scenario. These findings lead to a SCB at the floor of the 2.5% minimum for Schwab’s calculated stress capital buffer (SCB).

For the four-quarter period starting on October 1, 2023, this 2.5% SCB will still be applicable to Schwab. Due to the relatively low risk nature of the assets on our balance sheet, Schwab’s Common Equity Tier 1 (CET1) ratio as of March 31, 2023, at 21.4 percent, was significantly higher than the regulatory minimum of 4.5 percent combined with the SCB of 2.5 percent.

With a consolidated Tier 1 Leverage Ratio of 7.1 percent at the end of the first quarter of 2023, Schwab saw a slight decrease from the year-end 2022 value of 7.2 percent. The consolidated Tier 1 Leverage Ratio is higher than CSC’s long-term operating goal.

Schwab’s CCAR stress test results confirm that we are still in a good position to serve our clients in a variety of environments, according to CFO Peter Crawford. Crawford said, “Schwab’s CCAR stress test results reinforce that we remain well positioned to serve our clients across a range of environments. Given the anticipated changes to regulatory expectations and capital requirements, we’ll provide updates going forward regarding our capital planning and capital management priorities as conditions and requirements evolve. Going forward, we expect to continue managing our capital position in a manner that prioritizes long-term business growth, while also supporting our common stock dividend target and overall stockholder value.”

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