Stock Market Collapse Averted?

I posted this video on Friday reviewing where we are with the S&P 500 [and the US stock market generally] at the moment. In that same video, I quickly reviewed #Bitcoin the #FAANGM names #Facebook, #Amazon, #Apple, #Netflix, #Alphabet [#Google], and #Microsoft. I also threw in brief looks at #Goldman and #JP Morgan.

The week was a tale of 2 markets. Traders walked in on Monday to U.S. markets having taken it on the chin overnight based on fears of contagion from China’s real estate market and business concerns. The markets rebounded over the course of the day and ultimately put in the beginnings of a powerful chart pattern.

While stocks continued to make their way higher over the course of the week, as I mentioned in my video, there’s a resistance zone close by just overhead. That’s the area that I’ll be watching this week.

As you consider what’s likely for the stock market over the next few weeks/months, consider this… Americans are sitting on a ton of cash. The amount of household cash and cash equivalents increased to $16.5 trillion in the second quarter, up from $16.3 trillion in 1Q and $12.7 trillion at the end of 2019, the Federal Reserve reported on Thursday.

And this…

S&P 500 companies’ stock buybacks for Q2 rose 11.6% Q/Q to $198.8B, up 124.3% from the year-ago period, S&P Dow Jones Indices says. Buybacks are 11% off the all-time high of $223B set in Q4 2018.

In other words… don’t get short.

A few other tidbits…

SEC chair Gary Gensler questioned the long-term viability of cryptocurrencies and renewed the call for more regulatory oversight to protect investors. That, along with a Chinese “ban” [all cryptocurrency-related transactions are illegal in the country and they must be banned] led to Bitcoin taking a smack… although it pretty much recovered.

And just for chuckles…

#TRMB looks like we could be getting a buy signal soon.

Simple trading.