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 Discretionary Makes Relative Breakout, Poised To Lead In 2019

by Tom Bowley

Market Recap for Monday, January 7, 2019 Crude oil prices ($WTIC, +1.17%) rallied on Monday, helping energy (XLE, +1.49%) continue its recent surge, but the day clearly belonged to consumer discretionary stocks (XLY, +2.26%) as retail (XRT, +3.10%) and home construction ($DJUSHB, +2.43%) were among the session's best performers.  It wasn't an across-the-board advance like we've seen in recent days as two defensive sectors, utilities (XLU, -0.68%) and consumer staples (XLP, -0.14%), failed to participate.  Also, financials (XLF, +0.12%) struggled on a relative basis as banks Read More 

Trading Places with Tom Bowley

One Industry Group Has Quietly Been "Building" Relative Strength

by Tom Bowley

Market Recap for Friday, January 4, 2019 Friday was a HUGE day for the bulls as nonfarm payrolls came in well ahead of expectations (312,000 vs 180,000), which in no way reflects what the stock market has been saying since Q4 2018 began - that we were heading towards slowing economic growth.  That simply was not the case with this jobs report.  To add more fuel to the fire, Fed Chair Jerome Powell (who served as the lead role in How The Grinch Stole Christmas), backed off earlier statements and exercised patience.  Powell now is indicating that he's understanding the Read More 

Trading Places with Tom Bowley

Apple's (AAPL) Guidance Wasn't As Shocking As Facebook's (FB)

by Tom Bowley

Market Recap for Thursday, January 3, 2019 Just about every market-related discussion since Wednesday's close has centered around Apple (AAPL, -9.96%).and for good reason.  AAPL is a U.S. stock market icon.  Some might argue it is THE icon.  When they lowered their revenue guidance substantially on Wednesday evening, it marked the first time in 17 years that AAPL lowered its revenue guidance.  They are the poster child of conservative guidance and traders know that AAPL will beat estimates.  It's simply how the market goes 'round.  I've discussed Read More 

Trading Places with Tom Bowley

Just Two Days After The Ball Drops, The Bomb Drops

by Tom Bowley

Market Recap for Wednesday, January 2, 2019 On a day filled with hope, as traders rang in the new year on Wall Street, the biggest news came after the market closed as Apple (AAPL) warned regarding its upcoming quarter.  During the trading day, we saw resiliency for one of the few times over the past five weeks.  U.S. markets opened quite weak yesterday, but managed to attract buyers throughout the session as all of our major indices finished in positive territory, led by the more aggressive Russell 2000 and NASDAQ, which gained 0.54% and 0.46%, respectively.  In terms of Read More 

Trading Places with Tom Bowley

2019 Will Be A Cyclical Bear Market Within A Secular Bull Market

by Tom Bowley

Market Recap for Monday, December 31, 2018 December 2018 was a rough month to end a very difficult Q4.  It was very unusual in terms of historical perspective as we're accustomed to seeing mostly solid action in early December followed by a Santa Claus rally into year end.  Well, Santa finally did arrive on Wall Street, but many would argue it was a bit too late.  U.S. stocks opened last week in horrible fashion, posting the biggest loss ever on Christmas Eve.  But by week's end, we had seen rebounds across the board.  At Monday's close, the Dow Jones had rallied Read More 

Trading Places with Tom Bowley

Utilities Is The Lone Bullish Sector As We Move Into 2019

by Tom Bowley

Market Recap for Friday, December 28, 2018 Let's start with the bright spots from Friday's market action.  The more aggressive NASDAQ and Russell 2000 ended the session in positive territory, gaining 0.08% and 0.46%, respectively.  They both closed higher for the third consecutive day after a drubbing throughout December.  As a result, the month-to-date losses have shrunk, but they haven't changed the 2019 outlook much.  Most market participants consider a 20% drop to be a "bear market".  The small cap Russell 2000 nearly dropped 20% in December alone, prior to Read More 

Trading Places with Tom Bowley

Afternoon Strength Lifts Wall Street For 2nd Consecutive Session

by Tom Bowley

Market Recap for Thursday, December 27, 2018 The final two hours on Wall Street yesterday was quite the finish.  After languishing deep in red territory throughout much of the session, the bulls took complete charge into the close.  The Dow Jones, down more than 600 points just past 2pm EST, was threatening to give back most or all of its previous record-setting 1000+ point gain from Wednesday.  That obviously would have been a devastating blow to the bulls, which were already heavily-scarred from a December punishing like no other.  Instead, the bulls turned a very Read More 

Trading Places with Tom Bowley

Support Has Been Established, Now How High Might We Bounce?

by Tom Bowley

Market Recap for Wednesday, December 26, 2018 After gapping higher on Wednesday, our major indices retreated initially to lose all of its opening gains.  The Dow Jones traded approximately 300 points higher right out of the gates, but within 90 minutes had lost those gains and was down 80 points.  I'm sure most everyone was thinking "Here we go again!"  But this time, buyers emerged and the Dow Jones went on to post historic gains.  By day's end, the Dow Jones finished higher by 1,086 points, or 4.98%.  It's had higher percentage gains before, but never such a Read More 

Trading Places with Tom Bowley

We're Nearing Our First Major Bear Market Bottom

by Tom Bowley

Market Recap for Monday, December 24, 2018 It was an abbreviated session on Monday, but the losses were not abbreviated.  The Dow Jones lost another 653 points, or 2.91%, while the S&P 500, NASDAQ and Russell 2000 posted losses of 2.71%, 2.21% and 1.95%, respectively.  All 11 sectors fell rather hard, led by utilities (XLU, -4.18%), energy (XLE, -4.05%) and real estate (XLRE, -3.68%).  Utilities and real estate had been spared for the most part during the Q4 drubbing as both sectors traded at 2018 highs earlier in December.  They are quickly making up for lost Read More 

Trading Places with Tom Bowley

"How The Grinch Stole Christmas" Featuring Jerome Powell

by Tom Bowley

Market Recap for Friday, December 21, 2018 Growth stocks remain under significant pressure as the stock market is quickly repricing them based on bear market rules.  While I believe the sudden drop in so many critical areas simultaneously told us of the impending S&P 500 breakdown and ensuing bear market, Fed Chair Jerome Powell hastened the process by essentially guaranteeing the slowdown with a hawkish tone.  For those of you my age (or older), you'll probably remember that old margarine commercial tagline "it's not nice to fool Mother Nature".  Well, it's not nice to Read More 

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