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

Fed Raises Quarter Point, Energy Soars

by Tom Bowley

Market Recap for Wednesday, March 21, 2018 It was a volatile session on Wednesday, particularly after 2pm EST when the FOMC policy statement was released.  In Fed Chairman Jerome Powell's first meeting as Fed Chief, the Fed raised the benchmark funds rate a quarter point from 1.50% to 1.75%.  It was the sixth time rates have been raised since December 2015.  The funds rate is very closely tied to consumer interest rates.  The Fed also raised its economic forecast, saying that "the economic outlook has strengthened in recent months", new language from previous Read More 

Trading Places with Tom Bowley

I'm Betting On The Gambling Stocks This Spring

by Tom Bowley

Market Recap for Tuesday, March 20, 2018 There weren't huge gains on Tuesday, but given how poorly Monday went, I'd say yesterday was a very solid day.  On Monday, we saw the Volatility Index ($VIX) spike more than 20% back above 19 as fear ramped up.  The Dow Jones lost 335 points.  The more aggressive NASDAQ Composite lost 137 points (-1.84%) in what had to be considered its worst day since it closed down 275 points on February 8th to close at its 2018 low.  On February 9th, we saw the NASDAQ tumble another 147 points intraday before reversing and closing in positive Read More 

Trading Places with Tom Bowley

Facebook Shares Crater Amid Controversy; Leads Another Big Selloff

by Tom Bowley

Market Recap for Monday, March 19, 2018 Ok, let's start with the obvious.  It was an ugly day for U.S. equities.  The Dow Jones, S&P 500, NASDAQ and Russell 2000 fell 1.35%, 1.42%, 1.84% and 0.98%, respectively.  The Volatility Index ($VIX), which had been declining steadily to its intraday low of 13.31 on Friday, March 9th, suddenly began to surge.  The VIX finished 20% higher yesterday, closing at 19.02.  While this should have everyone's radar at high alert, there was a silver lining if you're in the bullish camp.  The VIX left a "long tail" to the Read More 

Trading Places with Tom Bowley

Energy And Utilities Fuel Dow Jones Rise

by Tom Bowley

Market Recap for Friday, March 16, 2018 There was an industry-wide rally in energy stocks (XLE, +0.89%) on Friday and utilities (XLU, +0.88%) also performed well.  The latter looks much better technically, however, as it has broken above its 50 day SMA.  There's still much work to do and clearing price resistance will be Job 1: The two blue circles highlight the bullish PPO centerline crossover and the approaching golden cross where the shorter-term moving average (20 day) crosses above the longer-term moving average (50 day).  These are positive developments, but Read More 

Trading Places with Tom Bowley

Several Technical Signs Pointing To A Surge In The US Dollar

by Tom Bowley

Market Recap for Thursday, March 15, 2018 It was just another day of bifurcated action on Wall Street.  But this time it featured a strengthening Dow Jones. The Dow gained 0.47%, while the S&P 500, NASDAQ and Russell 2000 fell 0.08%, 0.20% and 0.49%, respectively.  From a sector perspective, it was a mixed bag as industrials (XLI, +0.29%), technology (XLK, +0.06%) and financials (XLF, +0.03%) were the only winners, while the day's big loser was materials (XLB, -1.31%).  Specialty chemicals ($DJUSCX) has really struggled since failing to make a short-term price breakout Read More 

Trading Places with Tom Bowley

The Dollar's January Bottom Is Spooking Stocks In This Major Index

by Tom Bowley

Market Recap for Wednesday, March 14, 2018 The U.S. stock market continued its bifurcated ways on Wednesday.  While all of our major indices declined, it was not across-the-board selling.  The Dow Jones (-1.00%) saw the brunt of the selling, while the NASDAQ Composite (-0.19%) outperformed by a mile again.  A theme began two months ago and it's accelerating.  Money is rotating away from the large cap behemoths found on the Dow Jones and gravitating to the tech-laden NASDAQ.  Here's a visualization: There have been a number Read More 

Trading Places with Tom Bowley

Internet, Technology Stocks Lead Southbound Train

by Tom Bowley

Market Recap for Tuesday, March 13, 2018 It appears to be a case of "too much of a good thing".  Technology stocks (XLK, -1.15%) retreated off of a 60 minute negative divergence and that reverberated throughout most parts of the NASDAQ (-1.02%), which led our major indices lower on Tuesday.  Internet stocks ($DJUSNS, -1.99%) were unable to keep up with software ($DJUSSW), semiconductors ($DJUSSC) and computer hardware ($DJUSCR) - all of which broke out to fresh new highs this week.  The DJUSNS backed down just as it approached overhead price and gap resistance: Read More 

Trading Places with Tom Bowley

Tesla, Autos Gain Traction As NASDAQ Records 2nd Straight Record

by Tom Bowley

Market Recap for Monday, March 12, 2018 While we saw bifurcated action on Monday, it was still mostly bullish action.  For starters, the more aggressive NASDAQ (+0.36%) and Russell 2000 (+0.25%) finished in positive territory while the safer indices - Dow Jones (-0.62%) and S&P 500 (-0.13%) - lagged.  It was mostly positive action from a sector perspective as well.  Granted, utilities (XLU, +0.43%) was the best performing sector as the 10 year treasury yield ($TNX) continued to meander in consolidation mode.  But there was strength in aggressive sectors Read More 

Trading Places with Tom Bowley

Huge Jobs Report Sends NASDAQ To All-Time Highs

by Tom Bowley

Market Recap for Friday, March 9, 2018 The U.S. stock market was back to its old bull market tricks on Friday as the NASDAQ powered 133 points higher (+1.79%) to close at 7560.81 - its highest ever - and end its correction that began with the high volatility selloff in late-January and early-February.  For those in the bear market camp, let me just say they don't start with all-time high closes on the aggressive NASDAQ Composite.  The strength and bullishness didn't end with the NASDAQ.  Money rotated to aggressive sectors as well.  Financials (XLF, +2.41%) and Read More 

Trading Places with Tom Bowley

Defensive Stocks Lead Thursday's Rally; Warning Sign?

by Tom Bowley

Market Recap for Thursday, March 8, 2018 It's never a great signal to see the stock market rally and the three defensive sectors - consumer staples (XLP, +0.91%), utilities (XLU, +0.74%) and healthcare (XLV, +0.67%) - sit atop the sector leaderboard.  But we also shouldn't overreact to one day's trading.  If we see another S&P 500 all-time high in the next few months and this type of defensive leadership continues, then we'd be talking about a major warning sign.  Again, let's not overreact to one day.  A big jobs report was awaiting on the horizon, so it could be Read More 

Subscribe to Trading Places with Tom Bowley to be notified whenever a new post is added to this blog!