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

A Consumer Discretionary Group Has Been Sending Warning Signs For Two Years

by Tom Bowley

Market Recap for Thursday, October 18, 2018 Impulsive selling seemed to return to Wall Street on Thursday as the Dow Jones had a couple of intraday bouts where the index declined 200-300 points in just an hour or so.  That sent the Volatility Index ($VIX, +15.29%) scurrying higher once again and avoided - for the bears' benefit - a VIX drop below the 16 level.  That's been a threshold support level that's held in each of the two prior bear markets.  Caterpillar (CAT, -4.08%) really weighed on the Dow Jones, as did several other components that lost 2% or more (IBM, HD Read More 

Trading Places with Tom Bowley

Financials Continue To Bounce Off Support, Market Choppy

by Tom Bowley

Market Recap for Wednesday, October 17, 2018 There was a lot of back and forth action in our major indices on Wednesday.  For instance, in the span of just 2 1/2 hours, the Dow Jones lost more than 300 points, then recovered them all, moving slightly into positive territory.  After a couple hours of sideways, less volatile action, the Dow Jones began to weaken and finished lower by 92 points despite a solid last 15 minute finish that nearly cut the loss in half.  Despite Tuesday's big rally and yesterday's mixed action, the bears are currently in control of the action: Read More 

Trading Places with Tom Bowley

Dow Jones Gains Over 500 On Strong Earnings

by Tom Bowley

Market Recap for Tuesday, October 16, 2018 Wall Street welcomed a trend day to at least temporarily pause the violent downtrend we've experienced the past couple weeks.  A trend day typically starts with a gap higher and then gains are extended throughout the session.  We clearly saw that as the Dow Jones finished with a gain of 547 points, or 2.17%.  Money rotated back towards aggressive areas of the market as the NASDAQ outperformed, climbing a very solid 215 points, or 2.89%.  The small cap Russell 2000 ($RUT, +2.82%) outperformed the benchmark S&P 500 (+2.15%) Read More 

Trading Places with Tom Bowley

The Yield Spread (Curve) Is Worrisome For Banks

by Tom Bowley

Market Recap for Monday, October 15, 2018 A late afternoon selling binge pushed our major indices into negative territory by the close, with the lone exception being the small cap Russell 2000 ($RUT), which avoided a relative breakdown vs. the benchmark S&P 500.  Small caps have been languishing and significantly underperforming large caps since the start of September as you can see from the following chart: Despite yesterday's small cap rally, you can see that the RUT has broken beneath its 50 week SMA for the first time since the early-2016 swoon.  On a relative basis Read More 

Trading Places with Tom Bowley

History Says To Watch Those 60 Minute Charts For Bottoming Clues

by Tom Bowley

Market Recap for Friday, October 12, 2018 Finally, Wall Street saw buying pressure to end a trading session.  That certainly felt great psychologically, although as I point out below, I doubt that the short-term bottom is in.  It's possible, but the odds favor another short-term plunge.  For now, however, let's rejoice in the market's Friday reversal.  All of our major indices finished the day in positive territory, but it was quite an effort for the Russell 2000 small cap index to turn positive.  The RUT performed horribly on a relative basis throughout the Read More 

Trading Places with Tom Bowley

Bears Retain Grip on Wall Street as Fears Grow

by Tom Bowley

Special Note I will be speaking to the Charlotte Chapter of the American Association of Individual Investors (AAII) tomorrow Saturday, October 13th at 10:00am EST.  I plan to discuss how to evaluate the sustainability of a bull market, relative strength and gap trading strategies.  The first meeting is FREE to non-members, so if you're in the Charlotte area, please stop by and say hello!  For more information, CLICK HERE. Market Recap for Thursday, October 11, 2018 It was another difficult day for Wall Street, with most of our Read More 

Trading Places with Tom Bowley

VIX Surges 43% To Lead Major Selloff

by Tom Bowley

Special Note I will be speaking to the Charlotte Chapter of the American Association of Individual Investors (AAII) this Saturday, October 13th at 10:00am EST.  I plan to discuss how to evaluate the sustainability of a bull market, relative strength and gap trading strategies.  The first meeting is FREE to non-members, so if you're in the Charlotte area, please stop by and say hello!  For more information, CLICK HERE. Market Recap for Wednesday, October 10, 2018 It was simply one of those days where it didn't matter what you owned Read More 

Trading Places with Tom Bowley

Energy Continues To Lead But Failed At Key Resistance

by Tom Bowley

Special Note I will be speaking to the Charlotte Chapter of the American Association of Individual Investors (AAII) this Saturday, October 13th at 10:00am EST.  I plan to discuss how to evaluate the sustainability of a bull market, relative strength and gap trading strategies.  The first meeting is FREE to non-members, so if you're in the Charlotte area, please stop by and say hello!  For more information, CLICK HERE. Market Recap for Tuesday, October 9, 2018 Energy shares (XLE, +0.89%) were in favor on Tuesday as crude oil prices ($WTIC) Read More 

Trading Places with Tom Bowley

Consumer Staples And Real Estate Lead Rally

by Tom Bowley

Market Recap for Monday, October 8, 2018 Consumer staples (XLP, +1.38%) and real estate (XLRE, +1.29%) helped to power Monday's reversal, but that was not enough to turn around the fortunes for the NASDAQ, which still dropped more than 50 points as technology (XLK, -1.13%) stumbled for a third consecutive day.  It's difficult to believe that the XLK was at an all-time high last Wednesday.  Software ($DJUSSW) and semiconductor ($DJUSSC) stocks have been under intense selling pressure, reminiscent of the late-June selling. While yesterday's bullishness in consumer Read More 

Trading Places with Tom Bowley

VIX Hits Highest Level In 3 Months - What That Means

by Tom Bowley

Market Recap for Friday, October 5, 2018 There was good news and bad news Friday on the volatility front.  The Volatility Index ($VIX) hit 17.36 intraday on Friday, the highest level of expected volatility since the late-June swoon, and it closed another 4% higher after a big spike on Thursday.  High and rising volatility favors the bears in the near-term.  The good news for the bulls, however, is that the VIX left a long tail to the upside on Friday and might have peaked.  A topping VIX is generally associated with short-term S&P 500 bottoms: Read More 

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