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

Big Recovery Temporarily Halts Slide; Nonfarm Payrolls Weak

by Tom Bowley

Market Recap for Thursday, December 6, 2018 The Dow Jones and S&P 500 were both on a crash course for key February price support until buyers re-emerged just past 11am EST.  At the low yesterday, the Dow Jones was down nearly 800 points and it had tumbled more than 1700 points since the euphoric highs on Monday after the U.S.-China trade war "cease fire" was announced.  But the Dow Jones rose 400 points in final 75 minutes of action on Thursday to finish with a meager drop of 79 points.  The NASDAQ, meanwhile, erased an earlier 175 point drop to end the session in Read More 

Trading Places with Tom Bowley

U.S. Stock Futures Plummeting; Caution Is The Word

by Tom Bowley

Market Recap for Wednesday, December 5, 2018 The U.S. stock market was closed. Pre-Market Action U.S. futures look set to continue Tuesday's rout.  The 10 year treasury yield ($TNX) is lower by 3 basis points to 2.89% as money seeks out safety in the defensive bond market.  Crude oil ($WTIC) is down 2.76% at last check as it looks poised to retest the $50 per barrel level. Asian markets were clobbered overnight, with Hong Kong's Hang Seng Index ($HSI, -2.47%) leading the charge to the downside.  There's no escaping the selling as European indices are all down more than Read More 

Trading Places with Tom Bowley

Impulsive Selling Dominates, Dow Jones Drops 800....What Does It Mean?

by Tom Bowley

Market Recap for Tuesday, December 4, 2018 Don't be swayed by market commentary that discusses lack of volume yesterday as a positive.  First of all, the Dow Jones fell 800 points.  800!!!  And that's somehow a positive?  We lost 20 hour EMA support on the intraday chart without a fight.  We later lost 20 day EMA support without a fight.  Oh, by the way, volume was not light.  Check out this S&P 500 chart: Listen, I have a lot of respect for Art Cashin, the UBS Director of Floor Operations at the NYSE, and regular CNBC Read More 

Trading Places with Tom Bowley

As We Head Into Winter, We Should Buy.....Home Construction Stocks?

by Tom Bowley

Market Recap for Monday, December 3, 2018 Global stocks were buoyed on Monday by the United States and China agreeing to delay further tariffs for 90 days to provide the two countries an opportunity to work through its trade differences.  Obviously, nothing has been resolved and it simply pushes back the effect of higher tariffs.  Nonetheless, buyers emerged.  All of the major indices in the U.S. climbed more than 1%, led by the more aggressive NASDAQ, which gained 1.51%.  Energy (XLE, +2.22%) and technology (XLK, +2.21%) were the two clear sector winners, although Read More 

Trading Places with Tom Bowley

Here's A Bear Market Signal That's Yet To Turn Bearish

by Tom Bowley

Market Recap for Friday, November 30, 2018 Friday's strength capped off a very solid week for the bulls, one in which the Dow Jones gained more than 1250 points.  Strength was found everywhere although healthcare (XLV, +2.03%) and utilities (XLU, +1.48%) were the big winners to end the week.  While biotechs ($DJUSBT, +2.21%) surged to highs not seen in more than a month (see Sector/Industry Watch section), pharmas ($DJUSPR, +1.31%) were actually able to close at all-time highs, underscoring the relative strength that the group's enjoyed since May: Read More 

Trading Places with Tom Bowley

Volatility Index Suggests That Impulsive Selling Could Return

by Tom Bowley

Market Recap for Thursday, November 29, 2018 Before I discuss strength and weakness from the mixed action on Thursday, let me first say that the Volatility Index ($VIX) remains one of my biggest fears about the current state of the market.  In the morning yesterday, the VIX touched its high from Monday despite the S&P 500 trading much, much higher than it did on Monday: The VIX did settle back down by the end of Thursday's session, but the sudden spike near its weekly high on a poor initial jobless claims report suggests we might want to wear our crash helmets next Friday if Read More 

Trading Places with Tom Bowley

U.S. Equities Rally Big Time, But I Remain Very Cautious

by Tom Bowley

Market Recap for Wednesday, November 28, 2018 Wall Street finally (!) had a day where the bulls could smile at 4pm EST.  It was a trend day where the buying begins early and continues throughout the trading day.  These days tend to be very bullish, although there is still plenty to worry about (see Current Outlook and Sector/Industry Watch sections below).  Strength could be found everywhere on Wednesday.  The NASDAQ and Russell 2000 led the advance with gains of 2.95% and 2.51%, respectively.  But Dow Jones components tacked on 2.50% as Verizon Communications Read More 

Trading Places with Tom Bowley

Here's What's Wrong With Commodities....And Are Renewable Energy Stocks Finally Bottoming?

by Tom Bowley

Market Recap for Tuesday, November 27, 2018 One highlight from Tuesday's action is that the U.S. Dollar ($USD, +0.31%) remains in favor as it nears yet another breakout.  This is important on a number of fronts, especially with respect to gold ($GOLD, -0.74%).  There's been a very solid inverse relationship between the direction of GOLD and the direction of the USD for decades.  When the USD is on the rise, GOLD significantly underperforms the benchmark S&P 500.  When the opposite is true, GOLD is a major beneficiary: Until early October, the Read More 

Trading Places with Tom Bowley

Home Construction Has Bottomed And Here's An Unrelated Stock To Bolster Your Holidays

by Tom Bowley

Market Recap for Monday, November 26, 2018 Yesterday marked the first day in quite awhile where we saw all of our major indices higher, along with all of our sectors.  All eleven sectors gained ground, even the defensive sectors - though they lagged badly on a relative basis.  Leading the charge were communication services (XLC, +2.28%), technology (XLK, +2.26%) and consumer discretionary (XLY, +2.24%).  Financials (XLF, +2.04%) was the fourth of our aggressive sectors to post a gain in excess of 2%.  While this action changes absolutely nothing on the charts, it Read More 

Trading Places with Tom Bowley

Bears Control The Action Despite Inability To Take Out Major Support

by Tom Bowley

Market Recap for Friday, November 23, 2018 Friday's action was disappointing on a couple of different levels.  First, the Friday morning attempt at a rally failed midday and sellers emerged into the close.  It was somewhat similar to the action on Wednesday when the early morning gap higher and rally gave way to afternoon sellers.  Second, the Friday after Thanksigiving has historically had a very bullish slant to it and that really never materialized, except on the small cap Russell 2000, which outperformed and did manage to hang onto a fractional gain to close Read More 

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