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

Energy And Utilities Fuel Dow Jones Rise

by Tom Bowley

Market Recap for Friday, March 16, 2018 There was an industry-wide rally in energy stocks (XLE, +0.89%) on Friday and utilities (XLU, +0.88%) also performed well.  The latter looks much better technically, however, as it has broken above its 50 day SMA.  There's still much work to do and clearing price resistance will be Job 1: The two blue circles highlight the bullish PPO centerline crossover and the approaching golden cross where the shorter-term moving average (20 day) crosses above the longer-term moving average (50 day).  These are positive developments, but Read More 

Trading Places with Tom Bowley

Several Technical Signs Pointing To A Surge In The US Dollar

by Tom Bowley

Market Recap for Thursday, March 15, 2018 It was just another day of bifurcated action on Wall Street.  But this time it featured a strengthening Dow Jones. The Dow gained 0.47%, while the S&P 500, NASDAQ and Russell 2000 fell 0.08%, 0.20% and 0.49%, respectively.  From a sector perspective, it was a mixed bag as industrials (XLI, +0.29%), technology (XLK, +0.06%) and financials (XLF, +0.03%) were the only winners, while the day's big loser was materials (XLB, -1.31%).  Specialty chemicals ($DJUSCX) has really struggled since failing to make a short-term price breakout Read More 

Trading Places with Tom Bowley

The Dollar's January Bottom Is Spooking Stocks In This Major Index

by Tom Bowley

Market Recap for Wednesday, March 14, 2018 The U.S. stock market continued its bifurcated ways on Wednesday.  While all of our major indices declined, it was not across-the-board selling.  The Dow Jones (-1.00%) saw the brunt of the selling, while the NASDAQ Composite (-0.19%) outperformed by a mile again.  A theme began two months ago and it's accelerating.  Money is rotating away from the large cap behemoths found on the Dow Jones and gravitating to the tech-laden NASDAQ.  Here's a visualization: There have been a number Read More 

Trading Places with Tom Bowley

Internet, Technology Stocks Lead Southbound Train

by Tom Bowley

Market Recap for Tuesday, March 13, 2018 It appears to be a case of "too much of a good thing".  Technology stocks (XLK, -1.15%) retreated off of a 60 minute negative divergence and that reverberated throughout most parts of the NASDAQ (-1.02%), which led our major indices lower on Tuesday.  Internet stocks ($DJUSNS, -1.99%) were unable to keep up with software ($DJUSSW), semiconductors ($DJUSSC) and computer hardware ($DJUSCR) - all of which broke out to fresh new highs this week.  The DJUSNS backed down just as it approached overhead price and gap resistance: Read More 

Trading Places with Tom Bowley

Tesla, Autos Gain Traction As NASDAQ Records 2nd Straight Record

by Tom Bowley

Market Recap for Monday, March 12, 2018 While we saw bifurcated action on Monday, it was still mostly bullish action.  For starters, the more aggressive NASDAQ (+0.36%) and Russell 2000 (+0.25%) finished in positive territory while the safer indices - Dow Jones (-0.62%) and S&P 500 (-0.13%) - lagged.  It was mostly positive action from a sector perspective as well.  Granted, utilities (XLU, +0.43%) was the best performing sector as the 10 year treasury yield ($TNX) continued to meander in consolidation mode.  But there was strength in aggressive sectors Read More 

Trading Places with Tom Bowley

Huge Jobs Report Sends NASDAQ To All-Time Highs

by Tom Bowley

Market Recap for Friday, March 9, 2018 The U.S. stock market was back to its old bull market tricks on Friday as the NASDAQ powered 133 points higher (+1.79%) to close at 7560.81 - its highest ever - and end its correction that began with the high volatility selloff in late-January and early-February.  For those in the bear market camp, let me just say they don't start with all-time high closes on the aggressive NASDAQ Composite.  The strength and bullishness didn't end with the NASDAQ.  Money rotated to aggressive sectors as well.  Financials (XLF, +2.41%) and Read More 

Trading Places with Tom Bowley

Defensive Stocks Lead Thursday's Rally; Warning Sign?

by Tom Bowley

Market Recap for Thursday, March 8, 2018 It's never a great signal to see the stock market rally and the three defensive sectors - consumer staples (XLP, +0.91%), utilities (XLU, +0.74%) and healthcare (XLV, +0.67%) - sit atop the sector leaderboard.  But we also shouldn't overreact to one day's trading.  If we see another S&P 500 all-time high in the next few months and this type of defensive leadership continues, then we'd be talking about a major warning sign.  Again, let's not overreact to one day.  A big jobs report was awaiting on the horizon, so it could be Read More 

Trading Places with Tom Bowley

Railroads Hold One Of The Bull Market Keys

by Tom Bowley

Market Recap for Wednesday, March 7, 2018 It was a day of bifurcation, but it was good bifurcation - if that makes any sense.  When the stock market jury is split as we saw on Wednesday, I prefer that our aggressive market areas perform well and defensive areas lag.  Well, the very aggressive small cap Russell 2000 ($RUT) was the leading index, gaining 0.79% on the session.  The NASDAQ rallied 0.33%.  The more defensive benchmark S&P 500 nearly completed its intraday comeback attempt, finishing down just 1 point (after being down 26 points, or nearly 1% earlier in Read More 

Trading Places with Tom Bowley

Retail Regaining Strength And In The Middle Of Its Seasonal Sweet Spot

by Tom Bowley

Market Recap for Tuesday, March 6, 2018 Materials (XLB, +1.10%) and consumer discretionary (XLY, +0.69%) led a modest stock market rally here in the U.S. on Tuesday.  The small cap Russell 2000 gained more than 1% to once again outperform its larger cap counterparts.  The NASDAQ also outperformed, continuing its recent history of outperformance.  Check out how both the NASDAQ and Russell 2000 have been performing relative to the benchmark S&P 500: While they've both been strong on a relative basis recently, clearly it's the NASDAQ that has shown consistent Read More 

Trading Places with Tom Bowley

Leading Industry Prints Reversing Candle; Dow Jumps Over 300 Points

by Tom Bowley

Market Recap for Monday, March 5, 2018 The Dow Jones surged on Monday, gaining 337 points (+1.37%) to lead all of our major indices higher.  Two stalwarts - Caterpillar (CAT, +3.24%) and Boeing (BA, +2.34%) - were the leaders, but we saw 29 of the 30 Dow components gain yesterday.  The one bad apple?  No, it wasn't Apple (AAPL, +0.35%), although this tech giant did finish 28th out of 30 within the Dow.  The shoe just didn't fit for Nike (NKE, -1.27%), which had the distinction of being the "sole" Dow stock to finish in negative territory on an otherwise very Read More 

Subscribe to Trading Places with Tom Bowley to be notified whenever a new post is added to this blog!