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

We're Nearing Our First Major Bear Market Bottom

by Tom Bowley

Market Recap for Monday, December 24, 2018 It was an abbreviated session on Monday, but the losses were not abbreviated.  The Dow Jones lost another 653 points, or 2.91%, while the S&P 500, NASDAQ and Russell 2000 posted losses of 2.71%, 2.21% and 1.95%, respectively.  All 11 sectors fell rather hard, led by utilities (XLU, -4.18%), energy (XLE, -4.05%) and real estate (XLRE, -3.68%).  Utilities and real estate had been spared for the most part during the Q4 drubbing as both sectors traded at 2018 highs earlier in December.  They are quickly making up for lost Read More 

Trading Places with Tom Bowley

"How The Grinch Stole Christmas" Featuring Jerome Powell

by Tom Bowley

Market Recap for Friday, December 21, 2018 Growth stocks remain under significant pressure as the stock market is quickly repricing them based on bear market rules.  While I believe the sudden drop in so many critical areas simultaneously told us of the impending S&P 500 breakdown and ensuing bear market, Fed Chair Jerome Powell hastened the process by essentially guaranteeing the slowdown with a hawkish tone.  For those of you my age (or older), you'll probably remember that old margarine commercial tagline "it's not nice to fool Mother Nature".  Well, it's not nice to Read More 

Trading Places with Tom Bowley

We're Looking At A Category 3 Stock Market Hurricane Making Landfall

by Tom Bowley

Market Recap for Thursday, December 20, 2018 If you haven't noticed, I use a lot of weather analogies in describing the stock market.  It's by design as forecasting the stock market has a lot of similarities to forecasting the weather.  Meteorologists are often scrutinized as weather patterns can change quickly.  They have to change their forecasts on the fly to keep up with all the current happenings.  Welcome to the world of stock market forecasting where technical analysts essentially do the same thing. Bear market 2018 (or Hurricane Jerome) made Read More 

Trading Places with Tom Bowley

Fed Hikes, Promises More In 2019; Banks In Big Trouble

by Tom Bowley

Market Recap for Wednesday, December 19, 2018 This was a Fed day that could have lasting damaging effects.  Fed Chair Jerome Powell and his band of cronies decided to ignore the one piece of data that's probably the best leading indicator - the U.S. stock market.  The stock market has been telling everyone, except apparently the Fed, that economic growth is slowing.  Despite these signals, the Fed announced its course of higher interest rates will continue.  They hiked the fed funds rate another 25 basis points yesterday, which most traders expected.  However Read More 

Trading Places with Tom Bowley

On Fed Day, The Treasury Market Is Painting A Bearish Picture

by Tom Bowley

Special Event At 4:30pm EST today, I'll be joining John Hopkins, President of EarningsBeats.com, for a special "2019 Stock Market Outlook" webinar.  It's a FREE event where I'll be discussing likely market direction in 2019 and areas of the market that could benefit and those to avoid.  In addition, I'll show you how I maneuver through both my Strong Earnings and Weak Earnings ChartLists to uncover high reward-to-risk long and short trading candidates.  There are simple scans and sorting functions that will enable you to quickly zero in on money-making Read More 

Trading Places with Tom Bowley

It Was Just Another Manic Monday

by Tom Bowley

Market Recap for Monday, December 17, 2018 Every component stock in the Dow Jones Industrial Average fell on Monday as the index dropped another 500 points.  The S&P 500 lost major closing price support at 2581, crude oil ($WTIC) threatened to break below $50 per barrel, small caps ($RUT) and transports ($TRAN) extended their jaw-dropping December swoons, and railroads ($DJUSRR), a bull market leader and proxy for our domestic economy, broke to closing lows not seen since early May. In the words of the 1980s music group The Bangles, "it was just Read More 

Trading Places with Tom Bowley

S&P 500 Nearing Significant Breakdown, Bull Market Running Out Of Steam

by Tom Bowley

Market Recap for Friday, December 14, 2018 The U.S. stock market suffered another big blow to its current 9+ year bull market on Friday.  Culprits for the selling included Johnson & Johnson (JNJ, -10.30%) in the healthcare space (XLV, -3.37%), easily the worst performing sector, Adobe Systems (ADBE, -6.96%) in technology (XLK, -2.45%) after missing its bottom line EPS estimate ($1.83 vs $1.88) and Costco (COST, -8.50%) missing its earnings estimate ($1.61 vs $1.62) to lead consumer discretionary (XLY, -1.66%) and broadline retailers ($DJUSRB, -3.33%) lower.  It was Read More 

Trading Places with Tom Bowley

Here's A Bear Market Chart You Can't Afford To Miss!

by Tom Bowley

Market Recap for Thursday, December 13, 2018 The U.S. stock market attempted to stage rallies on Thursday, initially in the morning session and then again in the final hour.  But astute technicians that follow more than the headline Dow Jones and S&P 500 numbers realized it was a rally likely to fail.  Why?  Well, primarily because we're residing beneath declining 20 day EMAs and the leaders of the "rally" were utilities (XLU, +0.87%), real estate (XLRE, +0.69%) and consumer staples (XLP, +0.62%).  Defensive sectorsblech! Read More 

Trading Places with Tom Bowley

A Great Day Turns Good With Afternoon Selling; Internet Stocks Bottoming?

by Tom Bowley

Market Recap for Wednesday, December 12, 2018 The opening gap higher on Wednesday added to the recent stock market advance and the bulls stretched those early morning gains into the afternoon session.  But much of those intraday profits faded as the session wore on and an across-the-board advance really didn't feel so great by day's end.  Let's start, however, with the good news.  It was mostly a "risk-on" type of day, with leadership coming from communication services (XLC, +1.07%) and consumer discretionary (XLY, +1.05%).  Meanwhile, defensive sectors were Read More 

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 

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