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.

Latest Posts

Trading Places with Tom Bowley

Industrials Set To Record All-Time Highs

by Tom Bowley

Note If you enjoy my daily blog articles, please subscribe (for FREE!) below.  Simply scroll to the bottom of this article, type in your email address in the space provided and click the green "Subscribe" button.  Once subscribed, my articles will be sent directly to the email address provided the moment my article is published. Thanks! Market Recap for Wednesday, April 24, 2019 Sellers in the final 20-30 minutes carried most of our major indices deeper into negative territory, although the small cap Russell 2000 showed relative strength for the second consecutive Read More 

Trading Places with Tom Bowley

NASDAQ Breaks Out, Sets New All-Time High

by Tom Bowley

Market Recap for Tuesday, April 23, 2019 The small cap Russell 2000 led our major indices higher, gaining 1.61%, but the day clearly belonged to the NASDAQ, which not only climbed 1.32%, but broke to new all-time intraday and closing highs.  The NASDAQ pierced the 8109.69 level that had been the previous closing high set on August 29, 2018.  Healthcare (XLV, +1.58%) sparked the rally, but there was wide participation.  Communication services (XLC, +1.34%), consumer discretionary (XLY, +1.20%) and technology (XLK, +1.09%) also led on a relative basis and these Read More 

Trading Places with Tom Bowley

Crude Oil Surge Sends Energy Shares Higher

by Tom Bowley

Market Recap for Monday, April 22, 2019 I'm sure you've noticed it at the pump lately.  Gas prices are rising.  Yesterday, crude oil prices ($WTIC, +2.31%) jumped to their highest level of 2019 and closed above $65 per barrel for the first time since breaking below key price support in early-November 2018.  It's been one of many themes of 2019, and if you're a fan of the correlation coefficient, then you know that higher energy prices generally coincide with higher equity prices.  Take a look: This is a 25 year look-back period.  While we've Read More 

Trading Places with Tom Bowley

An Analysis Of Financials And Why We're Going Higher

by Tom Bowley

Market Recap for Thursday, April 18, 2019 Railroads ($DJUSRR, +2.37%) were led higher by Union Pacific's (UNP, +4.36%) strong quarterly earnings report and outlook.  The DJUSRR has been a leader among industrials (XLI, +1.15%) for more than three years and that trend is easily continuing in 2019 as the group has broken out on both an absolute and relative basis: It's much easier to outperform the benchmark S&P 500 if you trade companies that belong to industry groups that are outperforming the S&P 500.  Railroads are certainly one of those industries. Read More 

Trading Places with Tom Bowley

Clothing Stocks Gearing Up For Q2

by Tom Bowley

Market Recap for Wednesday, April 17, 2019 We saw mixed trading on Wednesday with the benchmark S&P 500 falling 0.23% to end the session at 2900, still roughly 1.5% beneath the all-time high set in 2018.  Technology (XLK, +0.56%) and consumer staples (XLP, +0.50) led the action, but the continuing fall in healthcare (XLV, -2.88%) was the bigger story.  The XLV is now down 6.53% over the last week and is rapidly moving towards its 2019 low: Rising political pressure to reduce healthcare costs has been the overriding theme this past week as the XLV has reached Read More 

Trading Places with Tom Bowley

Respect That 2940 Top On The S&P 500

by Tom Bowley

Market Recap for Tuesday, April 16, 2019 It was just another day of boring gains.  But that's what happens during bull market advances.  The Volatility Index ($VIX, -1.14%) drifts lower and stock prices edge higher.  Remember when the VIX topped out with a close above 36 on December 24th?  It seems like forever ago as the VIX closed yesterday at 12.18.  I've written on many occasions that the VIX never closed below 16 during either of the past two bear markets.  With a VIX currently near 12, it's almost a foregone conclusion that we'll be breaking Read More 

Trading Places with Tom Bowley

Rotation To Defense Isn't A Bad Thing

by Tom Bowley

Market Recap for Monday, April 15, 2019 Defensive groups took their turn leading the stock market, but on a down day that is generally to be expected.  Consumer staples (XLP, +0.59%) and healthcare (XLV, +0.40%) were the two leading groups, while financials (XLF, -0.63%) backed off from its Friday strength.  More banks ($DJUSBK, -0.90%) reported their quarterly results, but market participants were unable to gather enough bullish momentum to take the DJUSBK higher to clear overhead price hurdles.  Perhaps more encouraging earnings reports from this industry this Read More 

Trading Places with Tom Bowley

All-Time Highs Approaching Plus 10 Trade Setups

by Tom Bowley

Market Recap for Friday, April 12, 2019 Who thought at our December low that the S&P 500 would rally well over 20% to above 2900 and within 1% of our all-time high in less than four months?  Not this guy.  The stock market can do anything, but if this is a bear market rally, it's unlike any we've ever seen.  Friday was the latest celebration of this Wall Street party as the Dow Jones rallied over 1% to lead our major indices higher once again.  The S&P 500 gained 0.66%, while the more aggressive NASDAQ and Russell 2000 lagged on a relative basis Read More 

Trading Places with Tom Bowley

J.P. Morgan Beats Earnings Expectations

by Tom Bowley

Market Recap for Thursday, April 11, 2019 U.S. equities finished in bifurcated fashion as a late day rally enabled the S&P 500 to eke out a miniscule 0.11 point gain (+0.00%).  The other major indices finished in negative territory, led by the 0.21% decline in the NASDAQ.  Healthcare (XLV, -1.23%) was the primary reason for yesterday's lethargic action as health care providers ($DJUSHP, -3.23%) and biotechs ($DJUSBT, -1.56%) delivered the bearish blows.  The former was a Wall Street darling in 2018, but has fallen apart in 2019 as you can see below: Read More 

Trading Places with Tom Bowley

S&P 500 Channel Suggests We'll Bust Through 3000

by Tom Bowley

Market Recap for Wednesday, April 10, 2019 Small cap stocks enjoyed a huge day, carrying Wall Street higher.  The Russell 2000 surged 1.40% and is nearing a major neckline resistance that, if broken, would suggest much higher prices for small caps: Clearing 1600 would be a big deal technically and we're not far from doing just that.  The S&P 500, which gained 0.35% yesterday, is within 2% of its all-time high, so we could see very important technical levels cleared on multiple major indices simultaneously.  It would be difficult to argue the bullish implications of Read More 

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