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

Wall Street Gets Reprieve But Futures Are Red Again

by Tom Bowley

Market Recap for Wednesday, May 8, 2019 It was a much quieter day on Wall Street and it showed across our major indices and sectors.  We finished with bifurcated action as the Dow Jones managed to finish with a minor 2 point gain.  The other major indices ended with losses, led by the small cap Russell 2000, which fell 0.49%.  It was a mixture of gains and losses on the sector leaderboard as utilities (XLU, -1.37%) was the obvious laggard.  The remaining 10 sectors, however, either climbed or fell less than 0.25%.  Healthcare (XLV, +0.21%) provided minor Read More 

Trading Places with Tom Bowley

How Much Selling Is Ok?

by Tom Bowley

Market Recap for Tuesday, May 7, 2019 It was a wicked day on Wall Street.  It felt more like December 2018 than May 2019.  Volatility surged for a second consecutive day and sellers swamped buyers.  Volume accelerated as it generally does during market selloffs and a bit of panic was felt intraday.  If there was any good news, it was the Dow Jones' 170 point rally in the final 20 minutes to cut a 640 point loss to 473.  Nonetheless, it was an awful day. Building trade fears were once again the culprit as the U.S. and China can't seem to iron out a Read More 

Trading Places with Tom Bowley

Wall Street Shakes Off Trade Worries...For A Day

by Tom Bowley

Market Recap for Monday, May 6, 2019 The session got off to a very rough start as global market were hit hard following word that US-China trade talks were off the tracks once again.  President Trump warned of steeper tariffs and Chinese officials said they were considering abandoning talks altogether.  That produced sellers everywhere, including the U.S., where the S&P 500 quickly fell to a low of 2898, challenging the low set two days earlier at 2900.  Once again, however, buyers returned and scooped up cheaper shares as our major indices rallied throughout the Read More 

Trading Places with Tom Bowley

Jobs Strong On Friday But China Trade Weighs On Futures

by Tom Bowley

Market Recap for Friday, May 3, 2019 April nonfarm payrolls were much stronger than expected, jumping to 263,000 and well ahead of the 180,000 consensus estimate.  The unemployment rate fell to 3.6%, the lowest its seen in 50 years.  The bond market wasn't impressed, however, ending the Friday session down 2 basis points to 2.53%.  Even when we see solid economic strength, the bond market's reaction is muted.  Bond traders are making a compelling argument that we should remain on guard against deflation, not inflation. Friday's Read More 

Trading Places with Tom Bowley

Energy Remains A Drag And Seasonality Suggests It Could Get Worse

by Tom Bowley

Market Recap for Thursday, May 2, 2019 Energy (XLE, -1.74%) took yet another tumble on Thursday, which dampened an otherwise decent recovery from intraday morning lows in our major indices.  The Dow Jones was the big loser, dropping 0.46%, while the small cap Russell 2000 index rebounded nicely, finishing the session with a 0.40% gain.  The S&P 500 and NASDAQ fell 0.21% and 0.16%, respectively. Healthcare (XLV, +0.43%) aided the afternoon recovery as all five industry groups in this sector ended higher, led by medical supplies ($DJUSMS, +1.73%) and medical equipment Read More 

Trading Places with Tom Bowley

Banks Vs. REITs Provide Bullish Clue

by Tom Bowley

Market Recap for Wednesday, May 1, 2019 Fed Chair Jerome Powell ruined the bull market party on Wednesday afternoon, effectively suggesting that the Fed would not be lowering rates in response to low inflation data of late.  The bond market has been screaming for a rate cut, not a hike, but at least for now, the Fed is having none of it.  Powell said the lower inflation data was "transitory", not permanent.  We've already seen the Fed stick to its guns once, in late 2018 as they continued to discuss multiple rate hikes in 2019 as the 10 year treasury yield ($TNX) was Read More 

Trading Places with Tom Bowley

Go Away In May? More Like "Time To Fly Is Mid-July"

by Tom Bowley

Market Recap for Tuesday, April 30, 2019 Alphabet (GOOGL, -7.50%) set the stage for a rough day on the NASDAQ (-0.81%) as the internet giant posted quarterly results that didn't impress Wall Street.  The small cap Russell 2000 lost 0.45%, losing ground vs. the benchmark S&P 500 for only the second time in the last six trading sessions.  While all of our major indices dropped at the open, both the Dow Jones and S&P 500 rebounded to finish with gains (+0.15% and +0.10%, respectively) by the close. The rebound was likely tied to a series of Read More 

Trading Places with Tom Bowley

Watch This Transportation Ratio Very, Very Closely

by Tom Bowley

Market Recap for Monday, April 29, 2019 A bull market is comprised of a number of things, but two are wide participation and rotation of strength.  We've been seeing both.  Yesterday, it was financials (XLF, +1.01%) and communication services (XLC, +0.91%) that led the S&P 500 and NASDAQ to new record closing highs.  Banks ($DJUSBK, +1.30%) were solid and technically broke out above a key area of congestion (450-460) on their chart: The good news here is we finally saw the DJUSBK close above 460.  It's been a long time coming.  But, as with Read More 

Trading Places with Tom Bowley

Ford Lifts Autos, Healthcare Advances, And Consumer Stocks Bullish

by Tom Bowley

Market Recap for Friday, April 26, 2019 When was the last time I suggested Ford Motor Co (F, +10.74%) was a catalyst for any bull market advance?  Ummm, probably never.  But F was exactly that on Friday as much better than expected earnings lifted the stock and the automobile group ($DJUSAU, +2.42%).  The DJUSAU was the best performing industry within consumer discretionary (XLY, +0.79%) as well.  The history of relative strength among automobiles is not a good one, however: It's not easy to trust a group that's performed so abysmally vs. the S&P 500 Read More 

Trading Places with Tom Bowley

Structuring A Sound Trade And Avoiding The Relative Bear Market In Materials

by Tom Bowley

Market Recap for Thursday, April 25, 2019 Strong earnings from Microsoft (MSFT, +3.31%) and Facebook (FB, +5.85%) lifted the NASDAQ to gains on Thursday, while broader market bearishness carried the other major indices to losses.  3M Co (MMM, -12.95%) was a disaster on the Dow Jones, which lost 135 points on the session. Sector performance was bifurcated as well.  Communication services (XLC, +1.12%) and healthcare (XLV, +1.03%) were clear leaders, but industrials (XLI, -2.01%) and materials (XLB, -1.27%) were a drag on our indices.  The latter is no doubt struggling with Read More 

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