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

Technology Stocks Set To Lead Year End Rally

by Tom Bowley

Market Recap for Wednesday, December 27, 2017 Wednesday's action was characterized by thin volume and low volatility, normal for trading during the holidays.  Our major indices moved fractionally higher, with the Russell 2000 ($RUT) being the exception after that index fell during the afternoon session to finish slightly lower. Utilities (XLU, +0.42%) benefited from falling treasury yields and very oversold short-term conditions to log the biggest gain among sectors.  On the other end of the spectrum, the most overbought sector - energy (XLE, -0.33%) - saw a bit of profit Read More 

Trading Places with Tom Bowley

What Industry Will Lead The Stock Market In 2018? You Might Be Surprised....

by Tom Bowley

Market Recap for Tuesday, December 26, 2017 Energy stocks (XLE, +0.88%) continued their merry way higher, which really isn't surprising after the sector made a very significant price breakout above the 70 level.  With an RSI approaching the 80 level now, however, I wouldn't be surprised to see a bit of consolidation, or even profit taking, with money rotating to other areas for a bit.  Here's the current look at the XLE: Price action has been very strong and price momentum (MACD) is accelerating as well - a very bullish combination.  Pullbacks are likely to be Read More 

Trading Places with Tom Bowley

Time For Another Santa Claus Rally?

by Tom Bowley

Market Recap for Friday, December 22, 2017 The major indices all fell back slightly during Friday's pre-Christmas holiday, light volume trading session.  Materials (XLB, +0.38%) was the best performing sector, while healthcare (XLV, -0.32% and financials (XLF, -0.28%) lagged. The 10 year treasury yield ($TNX) continues to trade in sideways fashion after breaking above 7-8 month highs near 2.47%.  I'll be watching to see if the current pattern confirms an island cluster reversal, which would increase the odds of at least a short-term decline in treasury yields.  That would Read More 

Trading Places with Tom Bowley

Energy And Banks Dominate The Trading Session; All Major Indices Advance

by Tom Bowley

Market Recap for Thursday, December 21, 2017 In afternoon trading, all of the major indices except the NASDAQ appeared headed for another record all-time high close.  But a late afternoon selling bug hit Wall Street and much of those earlier gains disappeared.  The small cap Russell 2000 was able to hold onto most of its gains, but still failed to close at a record high.  The intraday high would have done it, but the chart below shows the tail left above closing resistance as the closing bell rang: Strength on Thursday came mostly from three sectors Read More 

Trading Places with Tom Bowley

Energy Breaks Out As Oil Equipment & Services Strengthen

by Tom Bowley

Market Recap for Wednesday, December 20, 2017 It's been a rough road for oil equipment & services stocks ($DJUSOI, +2.33%).  They haven't broken down below summer lows, but they also haven't kept pace with the energy sector as a whole either.  Yesterday's strength did take the group closer to key price resistance as they once again attempt to muster a lengthier rally.  Energy (XLE, +1.41%) also got a lift on Wednesday from the much more bullish exploration & production industry ($DJUSOS).  Take a look at this chart: Bull market Read More 

Trading Places with Tom Bowley

Treasury Yields Soar, On Verge Of Key Breakout

by Tom Bowley

Market Recap for Tuesday, December 19, 2017 Housing data released the past couple days has been extremely hot with the housing price index well above expectations and then yesterday housing starts and building permits both easily surpassing Wall Street consensus estimates.  This data has been expected by the stock market as price action in home construction ($DJUSHB) leading up to these reports has been straight up.  Check out the strength the past few months in the DJUSHB: There's a lot on this chart that's relevant from a technical analysis perspective Read More 

Trading Places with Tom Bowley

USX, Alcoa Lead Strong Materials Sector; Russell 2000 Breaks Out

by Tom Bowley

Market Recap for Monday, December 18, 2017 Rotation is powerful during bull markets and Monday's action was a perfect illustration.  On November 15th, both the materials sector and small cap stocks were clear market laggards, but over the past 4-5 weeks we've seen both areas gather themselves and begin another push higher to help sustain this bull market advance.  First, let's take a look at materials (XLB, +1.47%): The XLB clearly had price momentum issues, as evidenced by the negative divergence that accompanied the late October price high.  Subsequently, the Read More 

Trading Places with Tom Bowley

Russell 2000 Leads Friday's Strong Advance; Small Caps Ready To Explode

by Tom Bowley

Market Recap for Friday, December 15, 2017 Friday's action was extremely bullish.  I always love to see "trend days", where prices rise across the board from opening to closing bells.  Strength was found in all of our major indices with the Russell 2000 (small caps) leading the charge.  The RUT ended Friday with a 1.56% gain with the NASDAQ (+1.17%) also climbing more than 1%.  There was a bit of relative weakness in the more conservative Dow Jones and S&P 500, which finished the day 0.58% and 0.90% higher, respectively.  But all four moving higher in tandem Read More 

Trading Places with Tom Bowley

Disney-Fox Deal Lifts Broadcasting, Consumer Discretionary

by Tom Bowley

Market Recap for Thursday, December 14, 2017 Walt Disney (DIS) announced plans to purchase $52 billion of 21st Century Fox (FOXA) assets and that lifted both the broadcasting & entertainment index ($DJUSBC) and the consumer discretionary sector (XLY, +0.31%), not to mention both DIS (+2.75%) and FOXA (+6.50%).  That's the good news.  The bad news is that the remaining eight sectors finished lower, as did all of our major indices.  The Dow Jones ended its four day streak of closing at all-time highs and actually printed a short-term bearish engulfing candle in the Read More 

Trading Places with Tom Bowley

Fed Rate Hike Slams Financials; Biotechs Picking Up Steam

by Tom Bowley

Market Recap for Wednesday, December 13, 2017 It was a simple case of "buy the rumor, sell the news".  Financials (XLF, -1.24%) slumped on Wednesday after the Fed decided to raise interest rates another quarter point.  Higher 10 year treasury yields ($TNX) typically result in money rotating towards financial stocks.  Prior to yesterday, however, the XLF had risen 10% in a month.  That's a solid year, never mind a month!  So heading into the FOMC announcement, there surely was the possibility of a selloff and we saw it.  Financials remain very solid Read More 

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