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

Crude Oil, Energy Lead Wall Street Higher

by Tom Bowley

Market Recap for Tuesday, March 26, 2019 Strength in global markets seemed to influence the U.S. market at the open as equities surged higher.  But sellers dominated most of the balance of the day as gains evaporated.  A final 30 minute surge just before the close restored some of the earlier gains and all of our major indices finished in positive territory, led by the Russell 2000's 1.01% climb.  All 11 sectors managed to end the gains with gains as well.  Energy (XLE, +1.44%) and the beaten-down financials (XLF, +1.19%) led on a relative basis.  Banks ($DJUSBK Read More 

Trading Places with Tom Bowley

Seasonality And Price Support Suggest TSLA Is A Buy

by Tom Bowley

Market Recap for Monday, March 25, 2019 U.S. stocks finished in bifurcated fashion on Monday as the S&P 500 and NASDAQ lost 0.08% and 0.07%, respectively, while the Dow Jones tacked on 0.06%.  The small cap Russell 2000 was a relative outperformer, gaining 0.46% on the session.  All of our major indices were struggling and in negative territory with 90 minutes left in the trading day.  Resiliency then surfaced, as we often see during bull market advances.  One big positive was the reversal in the Volatility Index ($VIX) after testing overhead resistance near 18: Read More 

Trading Places with Tom Bowley

The VIX And S&P 500 Positive Correlation Predicted Friday's Drop

by Tom Bowley

Market Recap for Friday, March 22, 2019 Investors were worried on Friday and it was reflected in the Volatility Index ($VIX), which rose more than 20%, and sharply lower U.S. equity prices.  The small cap Russell 2000 was hit hardest, dropping 3.62%.  The weakness, however, was felt just about everywhere.  The NASDAQ, S&P 500 and Dow Jones fell 2.50%, 1.90%, and 1.77%, respectively, as negative divergences kicked in.  I wrote last week about moving to cash as warning signs were mounting.  My blog article last Tuesday, "Negative Divergences Could Wreak Read More 

Trading Places with Tom Bowley

Apple Leads Big Technology Rally

by Tom Bowley

Market Recap for Thursday, March 21, 2019 Technology stocks (XLK, +2.51%) carried Wall Street higher on Thursday as computer hardware ($DJUSCR, +3.56%), semiconductors ($DJUSSC, +3.13%), and software ($DJUSSW, +2.20%) all surged to fresh 2019 highs.  Apple, Inc. (AAPL, +3.68%), which has regained its title of largest market cap company in the world, was a major contributor to the computer hardware buying.  Western Digital (WDC, +9.77%) and Seagate Technology (STX, +5.99%), however, were the biggest gainers in the space and appear to be experiencing a change of character in Read More 

Trading Places with Tom Bowley

The Bond Market Is Sending Us The Most Bearish Signal

by Tom Bowley

Market Recap for Wednesday, March 20, 2019 Yesterday was all about the Fed and what it might say.  It was essentially a foregone conclusion that there'd be no rate hike, so traders were on edge anticipating what might change in the Fed's policy statement.  Stock traders seem to have a love affair with the notion of cheap money.  The Fed has definitely become much more dovish since its infamous declaration of multiple rate hikes in 2019.  It has now moved to ZERO rate hikes in 2019 and perhaps one in 2020.  Stock traders initially rejoiced the news, holding Read More 

Trading Places with Tom Bowley

U.S. Dollar Index Drops For 8th Straight Day, Awaiting Fed

by Tom Bowley

Market Recap for Tuesday, March 19, 2019 The U.S. stock market finished the day in bifurcated fashion as the NASDAQ (+0.12%) clung to a relatively minor gain, while the aggressive small cap Russell 2000 index lost 0.57%.  The Dow Jones and S&P 500 barely finished in negative territory, dropping 0.10% and 0.01%, respectively.  Four of our eleven sectors finished above the flat line as healthcare (XLV, +0.79%) and consumer discretionary (XLY, +0.50%) were clear relative winners.  Still, I'd say Tuesday was a very good day for the bears as solid early gains were mostly Read More 

Trading Places with Tom Bowley

Negative Divergences Could Wreak Havoc On U.S. Stocks

by Tom Bowley

Market Recap for Monday, March 18, 2019 U.S. stocks moved modestly higher on Monday, extending Friday breakouts on both the S&P 500 (+0.37%) and NASDAQ (+0.34%).  The Russell 2000 gained 0.67% to lead the action.  Crude oil prices ($WTIC, +1.47%) topped $59 per barrel as energy shares (XLE, +1.39%) were atop the sector leaderboard.  But it wasn't all about energy.  Financials (XLF, +1.01%), industrials (XLI, +0.97%) and consumer discretionary (XLY, +0.97%) - three aggressive sectors - all performed exceptionally well.  The laggards were primarily Read More 

Trading Places with Tom Bowley

Here's A Gem In Apparel Retail

by Tom Bowley

Market Recap for Friday, March 15, 2019 It was another solid day for the bulls to close out last week.  It was also quad-witching options expiration Friday, which typically results in much-heavier-than-usual volume.  Volume was certainly heavy on Friday.  Leadership was found in the aggressive NASDAQ, which jumped 0.76%.  The Dow Jones and S&P 500 followed with gains of 0.54% and 0.50%, respectively, while the small cap Russell 2000 lagged again, rising just 0.25%.  The Russell 2000's poor relative performance is a concern and is illustrated in the Current Read More 

Trading Places with Tom Bowley

Transports Going Along For The Ride

by Tom Bowley

Market Recap for Thursday, March 14, 2019 Thursday was a day of rest and bifurcated action.  The Dow Jones gained ground, albeit a rather miniscule 7 points, but the other major indices fell.  The Russell 2000, NASDAQ and S&P 500 dropped 0.40%, 0.16%, and 0.09%, respectively, as materials (XLB, -0.75%) struggled with a rallying dollar ($USD, +0.31%).  Energy (XLE, +0.11%) didn't suffer the same dollar-related fate, however, as crude oil prices ($WTIC, +0.60%) rose for a fourth consecutive day and ended with its highest close since mid-November. Read More 

Trading Places with Tom Bowley

Earnings Could Send ULTA Flying

by Tom Bowley

Market Recap for Wednesday, March 13, 2019 It was another strong day on Wall Street.  All 11 sectors moved higher for the second time this week.  Industrials (XLI, +0.88%) represent the only sector to have posted a daily loss this week.  The other 10 sectors have shown gains all three days.  Wide participation to the upside is a strong indication of renewed market strength and is a primary characteristic of bull markets.  The Dow Jones (+0.58%) actually participated to the extent of the other major indices as Boeing (BA, +0.46%) finally showed a bit of strength Read More 

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