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 Staples Finish Off Strong Week, Hold Trendline Support

by Tom Bowley

Market Recap for Friday, November 10, 2017 Generally speaking, I'm not a big fan of defensive areas leading the market to the upside.  But I'll make an exception for last week.  Consumer staples (XLP, +1.02%) was not only the clear leader on Friday, but it's weekly gain of 2.15% also easily vaulted the XLP into a leadership role for the week.  Why was the XLP's strength last week so important?  Well, first take a look at the weekly chart: Trend lines can be drawn in many different ways to support an argument so I do take them relatively lightly.  There Read More 

Trading Places with Tom Bowley

Early Losses Result In Successful Moving Average Tests; Overbought Conditions Unwinding

by Tom Bowley

Market Recap for Thursday, November 9, 2017 Energy (XLE, +0.30%) returned to the top of the leaderboard and this is what's likely to irritate the bears in the future.  We now have another sector that's technical capable to take on new money as money rotates elsewhere.  It's the beauty of a bull market.  Wide participation means a lot of choices.  The problems begin when breakdowns occur in several areas and money can't find a new technical home.  Consumer discretionary (XLY, +0.15%) also had a solid day considering the overall market weakness as its recent Read More 

Trading Places with Tom Bowley

Futures Down Sharply; The 9th Calendar Day Of Month Strikes Again

by Tom Bowley

Market Recap for Wednesday, November 8, 2017 It was another day of records for most of our major indices with the Dow Jones, S&P 500 and NASDAQ all closing at their highest levels ever.  Consumer staples (XLP, +1.09%) led the advance and I feature this group in the Sector/Industry Watch section below, showing how it's recovered nicely following a recent breakdown in price action. Technology (XLK, +0.55%) also had a very nice session with mobile telecommunications ($DJUSWC, +1.10%) among the strongest industry groups on Wednesday.  The DJUSWC really needed a day like this Read More 

Trading Places with Tom Bowley

Russell 2000 Takes Biggest Hit In Three Months; Watch This Support Level

by Tom Bowley

Market Recap for Tuesday, November 7, 2017 Small cap stocks felt a slight tremor on Tuesday as the Russell 2000 ($RUT, -1.26%) suffered its worst day in nearly three months.  While losses never feel good, I believe the RUT is in a bullish advance similar to the one it enjoyed in 2013 with weekly price momentum accelerating after a 50 week SMA test in August.  That would indicate that the rising 20 week EMA should provide excellent support: We saw lesser losses on the NASDAQ and especially the benchmark S&P 500, where a final 30 minute rally yesterday almost Read More 

Trading Places with Tom Bowley

Energy Explodes Higher As Crude Oil Tops $57 Per Barrel; Time For Small Caps Again?

by Tom Bowley

Market Recap for Monday, November 6, 2017 Energy (XLE, +2.29%) shares made a huge advance on Monday as money rotated to this once-forgotten sector in a very big way.  Bull markets thrive on broad participation in rallies and the XLE had been one sector not participating.  That is no longer the case as all technical signs point to higher prices in this space.  Here's the latest look at the XLE: If you had any doubts about the staying power of the September rally in XLE, they should be gone now.  Price action and volume trends do not lie and serious accumulation is Read More 

Trading Places with Tom Bowley

Familiar Names Pace Healthcare, Technology; Major Indices Rise Again

by Tom Bowley

Special Notes First, please join me and Erin Swenlin for MarketWatchers LIVE every day from Noon EST to 1:30pm EST.  We discuss key technical developments that you need to be aware of as you manage your wealth.  Previously, MarketWatchers LIVE aired just three days a week, but beginning today, you can join us five days a week!   The link is www.stockcharts.com/webinars.  Then click on the green "Watch Now" button and join us!  Again, we'll get started at Noon EST and cover my and Erin's Monday trade setups, a 10 in 10 segment at 12:50pm EST where I'll Read More 

Trading Places with Tom Bowley

Facebook Falters After Earnings, NASDAQ Now Looks To Apple's Strong Report

by Tom Bowley

Market Recap for Thursday, November 2, 2017 Financials (XLF, +0.94%) and industrials (XLI, +0.57%) led a Dow Jones rally on Thursday.  Goldman Sachs (GS) paced the financial stocks in the Dow with more than a 1% gain, while Boeing (BA) was the best performing Dow component and the obvious leader in industrials.  It was not really a broad-based rally on Thursday, however, as the NASDAQ actually lost ground despite an early push higher in Facebook (FB) following its better-than-expected quarterly earnings report.  It was likely a "buy on rumor, sell on news" type of even for Read More 

Trading Places with Tom Bowley

Transportation Services Is A Live Case Study In Rotation After A Negative Divergence

by Tom Bowley

Market Recap for Wednesday, November 1, 2017 U.S. stocks jumped higher out of the gates at Wednesday's open, but was unable to hang onto those gains - especially on the NASDAQ.  We did see a bit of strength in the final couple hours, though, after the FOMC policy announcement stated that interest rates would remain unchanged for now with a potential rate hike in December.  Traders expect that rate hike so there was a bit of relief perhaps that no action was taken currently. Crude oil prices ($WTIC) have been on the move higher of late and yesterday's intraday high of Read More 

Trading Places with Tom Bowley

Crude Oil Threatening Break Above $55 Per Barrel; A Look At Transports

by Tom Bowley

Market Recap for Tuesday, October 31, 2017 Don't look now, but crude oil prices ($WTIC) are on the verge of moving to a 2 1/2 year high.  Energy (XLE, +0.33%) has shown life since ending its downtrend that began back in December 2016.  Rising prices in crude would help to "fuel" the space in the months ahead so keep an eye out for that breakout: Should crude clear $55 per barrel, I'd expect the recent XLE breakout and uptrend to continue. Consumer staples (XLP, +0.84%) finally performed well on Tuesday, but there's much more technical work to do in this Read More 

Trading Places with Tom Bowley

Small Caps And Healthcare Take Brunt Of Monday's Selling

by Tom Bowley

Market Recap for Monday, October 30, 2017 Weakness permeated the U.S. stock market on Monday with the small cap Russell 2000 losing more than 17 points, or 1.15%.  Other U.S. indices mostly followed suit, although the NASDAQ gave back very little from Friday's massive gains as large cap technology giants continued to perform well.  Traders in Apple (AAPL) now are gearing up for what they believe will be blowout numbers on Thursday after the close.  AAPL gained 2.25% yesterday to close at an all-time high.  Facebook (FB) reports its quarterly results on Wednesday after Read More 

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