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

Defensive Areas Shine As Investors Seek Out Safety; Netflix Clears 400

by Tom Bowley

Market Recap for Tuesday, June 19, 2018 Treasuries (TLT, +0.58%), utilities (XLU, +0.99%), consumer staples (XLP, +0.53%) and healthcare (XLV, +0.26%) highlighted the strength on Tuesday.  Wall Street suffered painful losses at the opening bell for a second straight day, but also rallied off those early losses for a second day in a row.  Money rotating toward defensive areas is not a great thing, but it's much worse in my opinion when defense leads rallies.  It's typical for defense to lead during declines as scared money pours into those areas on a relative basis Read More 

Trading Places with Tom Bowley

This Industry Group Tries To Clear Resistance For The 23rd Time; Dow Futures Tumble

by Tom Bowley

Market Recap for Monday, June 18, 2018 Trade war fears are picking up again this morning and it's rattling equities worldwide.  It created a bit of a stir on Monday morning as futures were weak, signaling a rough start for U.S. equities.  That's exactly what we saw as the Dow Jones opened down well over 200 points.  The good news is that buyers stepped up throughout the session.  The bad news is that the short-term downtrend in this index remained in play despite the recovery: Large multinational companies have been under pressure on a relative basis the Read More 

Trading Places with Tom Bowley

Energy Leads Market Lower, Watch These Two Support Levels

by Tom Bowley

Market Recap for Friday, June 15, 2018 We finished Friday's action with lower major indices, primarily the result of a very weak energy sector (XLE, -2.15%).  Unfortunately, that masked one of the best absolute and relative performance days in consumer staples (XLP, +1.28%) since the January high.  Technically, the XLP looks the best it's looked since January.  We're seeing strengthening price momentum, the recapture of prior price support lost, and on Friday the XLP enjoyed a "golden cross".  Check out the chart: The blue circles Read More 

Trading Places with Tom Bowley

Talk About Hot? This Sector Has Risen Every Day In June

by Tom Bowley

Market Recap for Thursday, June 14, 2018 Utilities (XLU, +1.24%) led a bifurcated market on Thursday, but the real story of June has been consumer discretionary (XLY, +1.04%).  The XLY has not only posted gains each of the 10 trading days in June thus far, but it's also closed above its open in each of those days as well.  I can't recall the last time I've seen that happen and it underscores the incredible strength of the current rally.  Retail (XRT) has dominated the past two weeks, but even this scorching-hot industry has paused the past two days on profit taking Read More 

Trading Places with Tom Bowley

Netflix Jumps To Record, But Fed Rate Hike Weighs On Stocks

by Tom Bowley

Market Recap for Wednesday, June 13, 2018 Another Fed day is in the rear view mirror and now we know the following.  The Fed expects to raise interest rates two more times in 2018, bringing the total number of hikes to 4, as opposed to the 3 they discussed in prior meetings.  Also, they describe the expected pace of economic growth to be "solid", replacing the "modest" wording in previous announcements.  While volatility was high - as it usually is in the two hours following the FOMC announcement - the end result is that the 10 year treasury yield ($TNX) finished slighly Read More 

Trading Places with Tom Bowley

Bull Market Resumption Awakens The Hibernating Industries; We're Going Higher Folks

by Tom Bowley

Market Recap for Tuesday, June 12, 2018 The Dow Jones lost one point yesterday, but our other key indices finished with gains, led higher by the NASDAQ (+0.57%) and small cap Russell 2000 (+0.46%).  It was another boring day of bullish action with perhaps one slight negative - utilities (XLU, +1.15%) led the climb.  I'm happy to ignore that defensive posturing as it really resulted mostly from an oversold bounce.  Utilities are not leading this bull market rally as the following chart illustrates: Performance on an absolute basis has been dismal, as evidenced by Read More 

Trading Places with Tom Bowley

Expect Small Caps To Continue To Provide Leadership

by Tom Bowley

Market Recap for Monday, June 11, 2018 U.S indices finished with across-the-board gains on Monday despite a final 30 minute selloff that saw the Dow Jones trim a 70 point gain down to just 5 points.  Still, stocks managed to start the week with minor gains ahead of a historic meeting between a sitting U.S. President and North Korea.  Consumer stocks were strong with consumer staples (XLP, +0.83%) bouncing and clearing important technical hurdles: Note that the RSI cleared 60 in addition to the PPO moving above its centerline.  A positive and rising PPO is a Read More 

Trading Places with Tom Bowley

Wall Street Ends Week With Gains, Home Construction Leads

by Tom Bowley

Market Recap for Friday, June 8, 2018 In a rare development, consumer staples (XLP, +1.23%) led Wall Street higher on Friday.  Over the past three months, the XLP has fallen 5.78% and no other sector is close to consumer staples' ineptitude.  The XLP has been the shunned part of consumer stocks as consumer discretionary (XLY, +0.21%) has gained 5.38% over the past three months.  That's a massive 11% difference over a fairly short time frame and it's resulted in a XLY:XLP ratio that has exploded higher: This XLY:XLP ratio is one reason to be extremely Read More 

Trading Places with Tom Bowley

Dow Jones Leads Bifurcated Market; McDonalds Soars On Announced Layoffs

by Tom Bowley

Market Recap for Thursday, June 7, 2018 The Dow Jones gained 95 points, extending its recent rally, on the strength of McDonalds Corp (MCD) and Chevron Corp (CVX).  MCD announced layoffs and Wall Street cheered the likely improvement to its bottom line by sending MCD higher by 4.37%: MCD headlined the strength in restaurants & bars ($DJUSRU), but others had very strong days as well.  Sonic Corp (SONC) pre-announced a stronger-than-expected sales forecast and a $500 million share repurchase program and that jumpstarted a group that's been lagging many of its Read More 

Trading Places with Tom Bowley

Materials And Financials Lead Strong Rally; Tesla Breaks Out

by Tom Bowley

Market Recap for Wednesday, June 6, 2018 It was another solid bull market rally on Wall Street on Wednesday, this time with the Dow Jones conglomerates leading the action.  The Dow Jones Industrial Average gained 346 points, or 1.40%, topping 25,000 and closing at its highest level since the second week of March.  All of our other major indices climbed as well with the S&P 500 now on a move toward 2800, a key reaction high area from mid-March: Momentum is building as it becomes more and more obvious that the 9+ year bull market is resuming after a lengthy Read More 

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