Trading Places with Tom Bowley

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015.

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Trading Places with Tom Bowley

Higher Treasury Yields Crushing Last Year's Darling - Home Construction

by Tom Bowley

Market Recap for Thursday, February 22, 2018 U.S. indices continued to tread water on Thursday, with mixed action among our major indices and sectors.  The Dow Jones posted a triple digit gain (165 points), but the more aggressive NASDAQ and Russell 2000 indices both fell fractionally.  Volatility ($VIX) subsided a bit with the VIX falling roughly 6.5% back to 18.72.  While the VIX has settled down a lot from the 50 level that we witnessed earlier in February, it remains elevated and should be respected.  Another rapid selloff remains possible and we know that during Read More 

Trading Places with Tom Bowley

FOMC Minutes Spook Traders, Equities Tumble In Final Two Hours

by Tom Bowley

Market Recap for Wednesday, February 21, 2018 Well, the U.S. stock market was humming right along..until the FOMC minutes were released at 2pm EST.  Take a look at this intraday chart on the Dow Jones and S&P 500 and I think you'll fairly quickly realize that something happened just after 2pm: I don't believe interest rate fears are spooking traders.  I think it's potential inflationary fears.  Rising interest rates are fine for the S&P 500, so long as it's because of economic strength ahead.  But if it's to combat inflation, we have a different animal Read More 

Trading Places with Tom Bowley

Walmart Results Take A Big Bite Out Of Dow Jones, Ends Winning Streak

by Tom Bowley

Market Recap for Tuesday, February 20, 2018 Selling returned to Wall Street as its six day winning streak came to an end.  The Dow Jones was easily the biggest loser as Walmart, Inc (WMT) disappointed traders with its latest quarterly earnings report and had its worst trading day in many years, dropping more than 10%.  Here's a quick look at WMT's chart: While Tuesday's selling was bad enough, the fact that WMT could not hold the top gap support level suggests the selling isn't over.  We could see a short-term bounce at any time after such big selling, but I don't believe Read More 

Trading Places with Tom Bowley

Traders Turn Defensive As Key Fibonacci Retracement Level Reached - Bearish

by Tom Bowley

Market Recap for Friday, February 16, 2018 On the surface, Friday's action didn't seem all that bad.  While there was bifurcated action, three of our four major indices did finish in positive territory.  The aggressive small cap Russell 2000 ($RUT) led the advance.  Only the NASDAQ finished in negative territory.  The benchmark S&P 500 only gained a point, but it did manage to run its winning streak of higher prices to six consecutive sessions - a period in which the S&P 500 has risen from its low of 2532 to Friday's close of 2732.  That's 200 points of Read More 

Trading Places with Tom Bowley

Grading The Current Rally - Is It Sustainable?

by Tom Bowley

Market Recap for Thursday, February 15, 2018 Selling is inevitable during bull markets.  After each leg higher, there's typically a period of selling/consolidation.  The bulls were spoiled for several months, as the bull market advance continued nearly uninterrupted.  There really hadn't been any notable selling or consolidation since the August 2016 high.  From there, the S&P 500 fell 5% over the next three months with the Volatility Index ($VIX), at its high, reaching 23 or so.  Since that November 2016 low, the rally has been fairly steady and the VIX never Read More 

Trading Places with Tom Bowley

Wall Street Shakes Off Inflation Worries, Retail Slump; Rallies For 4th Straight Session

by Tom Bowley

Market Recap for Wednesday, February 14, 2018 Wall Street sure did look like it was heading for a very rough day at 8:30am EST on Wednesday.  Very poor economic news hit traders with a 1-2 punch as the consumer price index jumped 0.5% instead of the 0.3% that everyone was expecting.  On the heels of that, we saw the worst retail sales report in 11 months.  Retail sales fell 0.3%, while consensus estimates had predicted a rise of 0.3%.  That was a double jackpot hit for the bears.  Dow Jones futures were up approximately 130 points just before the reports hit Read More 

Trading Places with Tom Bowley

This Might Very Well Be The Best Investment Over The Next 6-12 Months

by Tom Bowley

Market Recap for Tuesday, February 13, 2018 The U.S. stock market settled down on Tuesday, trading in a much narrower range, and finished with gains across its major indices for the third consecutive day.  While it was good to see the market stabilize after such panicked selling, there remains critical overhead resistance that must be negotiated before a more meaningful rally can occur.  Let's look at the S&P 500, for instance: The rally the past two sessions has enabled the S&P 500 to test its first key Fibonacci retracement level (38.2%) at 2661.  Note that the Read More 

Trading Places with Tom Bowley

Apple Rebounds, Leads Technology Higher As Wall Street Gains For Second Straight Day

by Tom Bowley

Market Recap for Monday, February 12, 2018 Wall Street saw more gains on Monday, continuing the strength we saw late during the Friday session.  Most of the strength, however, came during the morning session as the benchmark S&P 500 hit 2660, rising 130 points or approximately 5%, off the intraday low on Friday afternoon.  That buying momentum did appear to slow Monday afternoon, though, so I'd like to see short-term gap support hold: The close on Friday was just below 2620.  If we fall below that level, we'll likely see the PPO drop beneath centerline Read More 

Trading Places with Tom Bowley

U.S. Equities Recover, Stocks To Consider On A Rebound

by Tom Bowley

Market Recap for Friday, February 9, 2018 For the first time in 18 months, the Dow Jones, S&P 500 and NASDAQ all closed out a week beneath their rising 20 week EMAs.  After not seeing a meaningful pullback (more than 3%) for well over a year, our major indices have all given up 10%+ in the past couple weeks, although each of the major indices rallied late last week to cut into those losses.  We rallied strongly in the final two hours on Friday as bargain hunters couldn't pass up their first opportunity to buy stocks deeply discounted. Read More 

Trading Places with Tom Bowley

A High VIX Means Irrational Market Swings

by Tom Bowley

Market Recap for Thursday, February 8, 2018 For now, forget about the strong earnings season that we just witnessed.  Also, forget about bond yields rising, which I view as a very bullish development generally-speaking as it allows money to rotate from the more defensive bond market to the more aggressive equity market.  What makes rising bond yields bearish is a discussion for another day, but rising from all-time lows is not a bad thing in my view so long as it accompanied a strengthening economy. At this exact moment, none of the above matters.  It's all Read More 

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