This is our first short-term swing trade set up using our new tool for monitoring dark pool trades.

On Friday, August 16, 2019, unusual dark pool was detected with one $5.5 million dark pool print occurring at 11:08 AM (Pacific) and then another $5.5 million print after market close at 1:25 PM. Each trade represents only about 1% of the daily average volume in the stock.

Schwab stock price has dropped from around $44 to around $37 which has put it’s P/E at 13.9 and its Forward P/E at 13.6.

Schwab stock price is consolidating and looks ready for a swing move higher

The dark pool trades are occurring off a swing bottom which suggests a large player is betting on a swing move up.

Schwab stock price in the 1 minute time frame. Unusual dark pool trades detected on August 16, 2019

On August 14, 2019, Charles Schwab released its Monthly Activity Report. Company highlights for the month of July 2019 include:

  • Core net new assets brought to the company by new and existing clients totaled $19.3 billion for the month, a July record. Net new assets excluding mutual fund clearing totaled $18.2 billion.
  • Total client assets were a record $3.75 trillion as of month-end July, up 8% from July 2018 and up 1% compared to June 2019.
  • Client assets receiving ongoing advisory services were a record $1.96 trillion as of month-end July, up 8% from July 2018 and up 1% compared to June 2019.

Charles Schwab stock is a swing traders stock and not a long-term buy and hold gambit IMO. Notice the daily chart where the stock just swings back and forth without trending higher. I’m not adding Charles Schwab stock to the long-term buy and hold portfolio but wanted to bring to your attention for the sweet looking swing trade setup.

Disclosure: I do not hold any position in SCHW.

Charles Schwab In the News