Stock Market Collapse Creates Buying Opportunity

SPY 500 Heatmap 8.6.19

SPY 500 Heatmap 8.6.19

During times of stock market panic we get opportunity.

Short-term news inflames volatility and those keeping their head get paid. Stock futures seem to have stabilized so I'm looking to bid for new trades today. Took a small loss on a SPY ETF long last week but plan to make it back the next couple of days.

I'm looking for stocks that have shown relative strength while most stocks are in a sea of red. Two top candidates from my scans are Twitter TWTR and Overstock OSTK.

Neither are high-flying momentum stocks but they both held up well during the recent storm so I'm looking for a spot to initiate new swing trades.

SEE THE CHARTS BELOW.

Twitter pulled into support and Overstock appears ready to break significant resistance with nice profit potential near the $28 level. (OSTK has earnings Thursday)

TWTR has an average true range of $1.44 so I am looking for roughly a $5 advance if support holds.

Dow futures rebound more than 200 points after China stabilizes its currency

U.S. stock index futures are positive early Tuesday morning after China’s central bank indicated it wanted its currency to trade higher against the dollar. The bounce came after Wall Street saw its worst trading day of 2019 in the previous session on trade war tensions.

Overnight, China’s central bank set the yuan’s official reference point at stronger than the key 7 yuan-to-the-dollar point on Tuesday. The move calmed currency markets, initially rocked by fears the U.S.-China trade war was devolving into a currency war.

cnbc.com/2019/08/05/dow-futures-rally

The superrich are selling stocks, buying properties and keeping cash ready

The superrich blueprint to navigating this hairy stock market: Tap the brakes and get ready to pounce when it all goes to hell.

And by the looks of Monday’s action, hell might not be too far away.

In the first quarter, Tiger 21, a coalition of 750 members worth in excess of $75 billion, raised cash to levels not seen since 2013. Not much changed in the second quarter in terms of keeping powder dry. The group’s holding 12% in cash.

marketwatch.com/superrich-selling-stocks-buying-properties

Apple, Goldman Sachs start issuing Apple Cards to consumers

(Reuters) – Apple Inc (AAPL.O) rolled out its virtual credit card on Tuesday, working with bank Goldman Sachs Group Inc (GS.N) on the new iPhone add-on that may help Apple diversify from device sales and build out the Wall Street bank’s new consumer business.

reuters.com/apple-goldman-sachs-card/

Twitter Inc TWTR Stock Chart 8.6.19

Twitter Inc TWTR Stock Chart 8.6.19

Overstock OSTK Stock Chart 8.6.19

Overstock OSTK Stock Chart 8.6.19

Pete Renzulli
 

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