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

Consumer Stocks Look To Lead The Bull Market Into 2018

by Tom Bowley

Market Recap for Tuesday, December 12, 2017 It was mixed and bifurcated action on Tuesday.  The Dow Jones and S&P 500 continued their assault on the record books, but the NASDAQ and Russell 2000 both paused and pulled back.  With the 10 year treasury yield ($TNX) moving back above 2.40% ahead of today's FOMC announcement, financials (XLF, +1.00%) enjoyed a very nice day, while utilities (XLU, -1.71%) posted big losses and tested its 50 day SMA for the first time in nearly two months: The good news here is that its up channel remains perfectly intact as money Read More 

Trading Places with Tom Bowley

Historically Low VIX Is Very Bullish For Equities; Check Out These Numbers

by Tom Bowley

Market Recap for Monday, December 11, 2017 The Russell 2000 remained in true December form as it continues to struggle during the first half of the month, despite records being set on both the Dow Jones and S&P 500 on a daily basis.  It truly is an anomaly.  Since 1987, the Russell 2000 has moved higher 170 times during the first half of December, while losing ground 158 times.  So there's roughly been a 51.8% chance of small caps rising on any given day during the December 1-15 period.  But consider the second half of December where small caps have risen 64.9% of Read More 

Trading Places with Tom Bowley

9 Trade Setups To Consider After Recent Selling

by Tom Bowley

Market Recap for Friday, December 8, 2017 While we didn't set intraday all-time highs, we did manage to close at record levels on both the Dow Jones and S&P 500, which rose 0.49% and 0.55%, respectively, on Friday.  The NASDAQ tacked on 0.40% as it closes in on a record high close of its own (about 1% away from an all-time high record close).  Meanwhile, the Russell 2000 is doing what it typically does in the first half of December - struggle.  The RUT is down a little more than 1.5% thus far in December, but check out the Historical Tendencies section below to see the Read More 

Trading Places with Tom Bowley

U.S. Equities Post Strongest Day In December

by Tom Bowley

Market Recap for Thursday, December 7, 2017 December began with a huge intraday selloff and recovery and since then, it's been mostly down action.  Yesterday was the first day this month that the bulls could celebrate and feel good.  Eight of nine sectors advanced with many of the aggressive sectors leading the charge.  So while the S&P 500's modest gain of 0.29% might not have felt great, knowing that industrials (XLI, +0.92%) and technology (XLK, +0.62%) were among the leading sectors certainly helped to ease the recent pain.  Industrials, after printing a 60 Read More 

Trading Places with Tom Bowley

Recent Selling In Technology Improving Trading Opportunities

by Tom Bowley

Market Recap for Wednesday, December 6, 2017 It was a bifurcated day on Wall Street with the NASDAQ being lifted by an improving technology sector (XLK, +0.64), while a very weak energy group (XLE, -1.30%) put the brakes on both the Dow Jones and S&P 500.  Consumer discretionary (XLY, -0.65%) continued its recent weakness off of Monday's shooting star candle.  We could see a rising 20 day EMA test on the current weakness, although I remain a big fan of this sector: Check out the daily RSI.  It was in the mid-80s just a few days ago and it's still near 70 Read More 

Trading Places with Tom Bowley

Here's One Case For A Near-Term Top

by Tom Bowley

Reminder If you enjoy my blog articles, I'd love for you to subscribe.  It's the only way I know that I'm providing you with useful and thought-provoking information.  There is no charge for subscription, it's completely FREE!  Simply scroll down to the bottom of my article, type in your email address in the space provided and click on the green "Notify Me!" button.  StockCharts will then email you my blog article the moment it's published!  It's a great feature and you can subscribe to as many blogs here at StockCharts as you'd like to keep up with your Read More 

Trading Places with Tom Bowley

Dow Transports Gain 1000 Points During Last 8 Days' Melt Up

by Tom Bowley

Market Recap for Monday, December 4, 2017 Recent bullish themes continued on Monday.  Outperformance by the Dow Jones (+0.24%) and S&P 500 (-0.11%) overshadowed ugly relative performance from technology (XLK, -1.61%) and the NASDAQ (-1.05%).  Even the riskier Russell 2000 index ($RUT, -0.30%) easily outperformed the NASDAQ.  The good news is that this quick correction in technology stocks is relieving prior overbought conditions and helping to remedy the momentum issues that were in place.  Check out the XLK: This selling Read More 

Trading Places with Tom Bowley

We're Quickly Approaching A Seasonal Bearish Period; Consider Taking Some Profits

by Tom Bowley

Market Recap for Friday, December 1, 2017 An early selloff on Friday quickly became a buying opportunity as the bulls jumped back on board for what they hope will be another big upturn.  All of our major indices ended the Friday session in negative territory, but the losses early in the day were much, much larger.  The Dow Jones, for instance, was down 350 points a couple hours into the day, but recovered more than 300 of those points to finish down just 40.76 points.  The tech-heavy NASDAQ was down an astonishing 137 points, or roughly 2%, before reversing and finishing 26 Read More 

Trading Places with Tom Bowley

The Dow Jones Has Its Biggest Gain of 2017, Closes Above 24000

by Tom Bowley

Market Recap for Thursday, November 30, 2017 It was another broad-based rally on Wall Street with traders ditching bonds and rushing into equities.  The Dow Jones rallied 331.67 points to easily close above 24,000 for the first time in its history.  The records just keep piling up.  It was only 10 months ago that the Dow Jones managed to clear the psychological 20,000 level.  Since that time, we've seen the Dow rumble higher by more than 20%, taking out four 1,000 point milestones along the way.  Nothing seems to slow down this equity train with the Dow's weekly Read More 

Trading Places with Tom Bowley

Three Things To Take Away From Wednesday's Bizarre Market Action

by Tom Bowley

Market Recap for Wednesday, November 29, 2017 One quick glance at the S&P 500's meager 1 point loss on Wednesday and you might assume that Wall Street meandered through another one of its boring days.  But a deeper look will tell you that yesterday was anything but boring!  Technology (XLK, -2.21%) was hammered and suffered its worst one day loss since June 9th and its second worst day of 2017.  What happened?  Well, first and foremost, a negative divergence had printed on XLK's recent breakout.  That tells us that risk is heightened so you shouldn't be Read More 

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