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

Early Gains Wiped Out As U.S. Equities Finish In Bifurcated Fashion

by Tom Bowley

Market Recap for Tuesday, December 11, 2018 Volatile action on Tuesday resulted in a bifurcated market.  The NASDAQ managed to cling to gains at the close, while the Dow Jones, S&P 500 and Russell 2000 saw early morning gains turn into losses by the close.  Leadership came mostly from defensive areas of the market as consumer staples (XLP, +0.82%), utilities (XLU, +0.41%), healthcare (XLV, +0.31%) and real estate (XLRE, +0.18%) finished atop the sector leaderboard.  Financials (XLF, -0.97%) and industrials (XLI, -0.59%) were the primary laggards.  Basic materials Read More 

Trading Places with Tom Bowley

S&P 500 Touches MAJOR Price Support; One Ingredient Missing For Bear Market

by Tom Bowley

Market Recap for Monday, December 10, 2018 Yesterday was significant for one very important technical development.  The February 2018 low close of 2582 was within a whisker on Monday as the S&P 500 hit an intraday low of 2583 before rallying strongly.  Technology (XLK, +1.38%) led the rebound, followed by communication services (XLC, +0.76%) and healthcare (XLV, +0.39%).  Energy (XLE, -1.56%) lagged badly, as did financials (XLF, -1.39%).  Let's look at that key price support test on the S&P 500: Two things stand out to me.  First, the Read More 

Trading Places with Tom Bowley

Falling Transports Lead To Further Losses On Wall Street

by Tom Bowley

Market Recap for Friday, December 7, 2018 Friday marked the end of a rough day and a rough week for U.S. equities.  Strength was found in utilities (XLU, +0.37%), the only sector to end in positive territory to close out the week.  Gold miners ($DJUSPM, +2.36%) and miners ($DJUSMG, +2.00%) helped to alleviate some of the weakness in materials (XLB, -2.41%) as those two groups benefited from a very weak performance by the U.S. Dollar Index ($USD) last week: The strengthening dollar has resulted in a weakening materials groups throughout 2018, but dollar weakness last Read More 

Trading Places with Tom Bowley

Big Recovery Temporarily Halts Slide; Nonfarm Payrolls Weak

by Tom Bowley

Market Recap for Thursday, December 6, 2018 The Dow Jones and S&P 500 were both on a crash course for key February price support until buyers re-emerged just past 11am EST.  At the low yesterday, the Dow Jones was down nearly 800 points and it had tumbled more than 1700 points since the euphoric highs on Monday after the U.S.-China trade war "cease fire" was announced.  But the Dow Jones rose 400 points in final 75 minutes of action on Thursday to finish with a meager drop of 79 points.  The NASDAQ, meanwhile, erased an earlier 175 point drop to end the session in Read More 

Trading Places with Tom Bowley

U.S. Stock Futures Plummeting; Caution Is The Word

by Tom Bowley

Market Recap for Wednesday, December 5, 2018 The U.S. stock market was closed. Pre-Market Action U.S. futures look set to continue Tuesday's rout.  The 10 year treasury yield ($TNX) is lower by 3 basis points to 2.89% as money seeks out safety in the defensive bond market.  Crude oil ($WTIC) is down 2.76% at last check as it looks poised to retest the $50 per barrel level. Asian markets were clobbered overnight, with Hong Kong's Hang Seng Index ($HSI, -2.47%) leading the charge to the downside.  There's no escaping the selling as European indices are all down more than Read More 

Trading Places with Tom Bowley

Impulsive Selling Dominates, Dow Jones Drops 800....What Does It Mean?

by Tom Bowley

Market Recap for Tuesday, December 4, 2018 Don't be swayed by market commentary that discusses lack of volume yesterday as a positive.  First of all, the Dow Jones fell 800 points.  800!!!  And that's somehow a positive?  We lost 20 hour EMA support on the intraday chart without a fight.  We later lost 20 day EMA support without a fight.  Oh, by the way, volume was not light.  Check out this S&P 500 chart: Listen, I have a lot of respect for Art Cashin, the UBS Director of Floor Operations at the NYSE, and regular CNBC Read More 

Trading Places with Tom Bowley

As We Head Into Winter, We Should Buy.....Home Construction Stocks?

by Tom Bowley

Market Recap for Monday, December 3, 2018 Global stocks were buoyed on Monday by the United States and China agreeing to delay further tariffs for 90 days to provide the two countries an opportunity to work through its trade differences.  Obviously, nothing has been resolved and it simply pushes back the effect of higher tariffs.  Nonetheless, buyers emerged.  All of the major indices in the U.S. climbed more than 1%, led by the more aggressive NASDAQ, which gained 1.51%.  Energy (XLE, +2.22%) and technology (XLK, +2.21%) were the two clear sector winners, although Read More 

Trading Places with Tom Bowley

Here's A Bear Market Signal That's Yet To Turn Bearish

by Tom Bowley

Market Recap for Friday, November 30, 2018 Friday's strength capped off a very solid week for the bulls, one in which the Dow Jones gained more than 1250 points.  Strength was found everywhere although healthcare (XLV, +2.03%) and utilities (XLU, +1.48%) were the big winners to end the week.  While biotechs ($DJUSBT, +2.21%) surged to highs not seen in more than a month (see Sector/Industry Watch section), pharmas ($DJUSPR, +1.31%) were actually able to close at all-time highs, underscoring the relative strength that the group's enjoyed since May: Read More 

Trading Places with Tom Bowley

Volatility Index Suggests That Impulsive Selling Could Return

by Tom Bowley

Market Recap for Thursday, November 29, 2018 Before I discuss strength and weakness from the mixed action on Thursday, let me first say that the Volatility Index ($VIX) remains one of my biggest fears about the current state of the market.  In the morning yesterday, the VIX touched its high from Monday despite the S&P 500 trading much, much higher than it did on Monday: The VIX did settle back down by the end of Thursday's session, but the sudden spike near its weekly high on a poor initial jobless claims report suggests we might want to wear our crash helmets next Friday if Read More 

Trading Places with Tom Bowley

U.S. Equities Rally Big Time, But I Remain Very Cautious

by Tom Bowley

Market Recap for Wednesday, November 28, 2018 Wall Street finally (!) had a day where the bulls could smile at 4pm EST.  It was a trend day where the buying begins early and continues throughout the trading day.  These days tend to be very bullish, although there is still plenty to worry about (see Current Outlook and Sector/Industry Watch sections below).  Strength could be found everywhere on Wednesday.  The NASDAQ and Russell 2000 led the advance with gains of 2.95% and 2.51%, respectively.  But Dow Jones components tacked on 2.50% as Verizon Communications Read More 

Trading Places with Tom Bowley

Here's What's Wrong With Commodities....And Are Renewable Energy Stocks Finally Bottoming?

by Tom Bowley

Market Recap for Tuesday, November 27, 2018 One highlight from Tuesday's action is that the U.S. Dollar ($USD, +0.31%) remains in favor as it nears yet another breakout.  This is important on a number of fronts, especially with respect to gold ($GOLD, -0.74%).  There's been a very solid inverse relationship between the direction of GOLD and the direction of the USD for decades.  When the USD is on the rise, GOLD significantly underperforms the benchmark S&P 500.  When the opposite is true, GOLD is a major beneficiary: Until early October, the Read More 

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