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

S&P 500 Breaks Record, Crude Oil Surges

by Tom Bowley

Market Recap for Thursday, June 20, 2019 More dovish Fed policy is already having its effects.  The anticipation of those changed policies has sent investors around the globe into U.S. treasuries, as yields have dropped precipitously since Q4 2018.  But yesterday, U.S. equities climbed aboard as the S&P 500 sailed to all-time highs as to both intraday and closing value: I don't know, but that looks like a pretty nice uptrend and a breakout to boot.  We're in a secular bull market and we're going higher. Leadership on Thursday came from energy Read More 

Trading Places with Tom Bowley

Fed Offers Traders Hope, Travel & Tourism Has Big Challenge Ahead

by Tom Bowley

Market Recap for Wednesday, June 19, 2019 Yesterday was Fed day, or Fednesday as one MarketWatchers LIVE viewer said, and U.S. equities liked what the Fed had to say.  What it had to say was essentially what most market pundits were expecting - that the word "patient" would be removed from the Fed's policy statement and that the likelihood of an upcoming rate cut would be apparent.  After the meeting, fed funds futures implied that we will see a rate cut when the Fed meets again in July. All of our major indices gained ground on Wednesday, albeit the gains were Read More 

Trading Places with Tom Bowley

Relative Strength In Two Key Sectors Says All We Need To Know

by Tom Bowley

Market Recap for Tuesday, June 18, 2019 It was a day of rallying global equities, especially in the German DAX ($DAX, +2.03%).  The DAX ($DAX) moves more in sync with U.S. equities than any other foreign equity market - in my opinion.  The long-term positive correlation between the DAX and the S&P 500 backs me up on this.  Therefore, we shouldn't ignore what the DAX did yesterday: The DAX was under pressure throughout much of 2018, especially after breaking down from a topping head & shoulders pattern.  That measurement was achieved in December Read More 

Trading Places with Tom Bowley

Autos Back On The Road To Nowhere; Tesla Loves June

by Tom Bowley

Market Recap for Monday, June 17, 2019 Facebook (FB, +4.24%) announced a platform cryptocurrency with a white paper due out today, while Netflix (NFLX, +3.21%) received positive comments from a Piper Jaffray analyst looking for solid results out next month.  That combination lifted communications services (XLC, +1.14%) to the top of the sector leaderboard, while also providing a big boost to internet stocks ($DJUSNS, +1.89%).  Real estate (XLRE, +1.09%) and energy (XLE, +0.84%) were also sector winners on the session as the Russell 2000 ($RUT, +0.67%) and NASDAQ ($COMPQ, +0.62%) Read More 

Trading Places with Tom Bowley

Home Construction Breaks Out As S&P 500 Consolidates

by Tom Bowley

Market Recap for Friday, June 14, 2019 The big news on Friday was Broadcom's (AVGO, -5.57%) quarterly results and outlook, neither of which were particularly good.  AVGO fell short of its revenue estimate and offered a very broad warning regarding upcoming revenues in the semiconductor industry ($DJUSSC, -2.43%).  The DJUSSC lost its rising 20 day EMA, a bearish development, and now traders have their eyes set on the price support established by the late-May low: The weakness in semiconductors weighed on technology (XLK, -0.87%) as that sector was the worst Read More 

Trading Places with Tom Bowley

Transports Vs. Utilities Ratio Supports The Bearish Argument

by Tom Bowley

Market Recap for Thursday, June 13, 2019 A nice rally to end the session lifted all of our major indices into the close.  The Russell 2000 led on a relative basis, gaining 1.05%.  The NASDAQ, S&P 500 and Dow Jones climbed 0.57%, 0.41%, and 0.39%, respectively.  Walt Disney (DIS, +4.44%) provided individual stock leadership as it was easily the best performing Dow Jones component.  It closed at an all-time high, although it still has a bit of technical work left to clear its open from April 29th at 142.19: Morgan Stanley raised the price target on Read More 

Trading Places with Tom Bowley

Big Drop In Crude Oil Prices Crush Energy Shares.....Again

by Tom Bowley

Market Recap for Wednesday, June 12, 2019 We ended Wednesday with bifurcated action as the small cap Russell 2000 ($RUT, +0.05%) was able to eke out a tiny gain.  The other major indices, however, were not so fortunate with the NASDAQ ($COMPQ, -0.38%) falling a bit more than the S&P 500 ($SPX, -0.20%) and Dow Jones ($INDU, -0.17%).  Sectors were mixed as well, with the obvious laggards being energy (XLE, -1.41%) and financials (XLF, -0.99%).  Banks ($DJUSBK, -1.33%) struggled with a small drop in the 10 year treasury yield ($TNX) and once again failed at stubborn price Read More 

Trading Places with Tom Bowley

Big Reversal May Mark Short-Term Top

by Tom Bowley

Market Recap for Tuesday, June 11, 2019 It wasn't a big down day, but it certainly felt like it.  It started off so promising.  Right out of the gate, the NASDAQ surged more than 1% in the opening minutes.  However, by day's end, it closed in negative territory and printed a rather ominous big red candle.  I might not think too much about it ordinarily, but the reversal did occur at neckline resistance in an inverse head & shoulders continuation pattern: The projection above is the bullish case for the current consolidation period.  It would Read More 

Trading Places with Tom Bowley

Mergers And Averting Mexico Tariffs Bolsters Stocks

by Tom Bowley

Market Recap for Monday, June 10, 2019 U.S. equities were buoyed by resolution to the 5% Mexico trade tariff announced recently by President Trump to encourage Mexico to slow the pace of illegal immigrants entering the U.S.  That tariff was set to take effect yesterday, but never materialized.  In addition, there were two mega-mergers that sparked buying interest as well.  First, Raytheon (RTN, +0.69%) and United Technologies (UTX, -3.13%) announced a deal combining these two defense ($DJUSDN, -0.72%) and aerospace ($DJUSAS, -0.74%) giants.  Then, in Read More 

Trading Places with Tom Bowley

3 Monday Setups To Start The Week

by Tom Bowley

Market Recap for Friday, June 7, 2019 U.S. indices capped off a very solid week with more gains on Friday.  The more aggressive NASDAQ trounced the other key indices, climbing 1.66%.  The S&P 500, Dow Jones, and Russell 2000 added 1.05%, 1.02%, and 0.72%, respectively.  9 of 11 sectors participated to the upside with three key groups - technology (XLK, +1.86%), communication services (XLC, +1.62%), and consumer discretionary (XLY, +1.45%) - leading the charge.  Computer hardware ($DJUSCR, +2.31%) is strengthening again after bouncing off both February price Read More 

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