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

This NASDAQ 100 Giant Flashed BUY Yesterday; History Confirms It

by Tom Bowley

Market Recap for Thursday, July 5, 2018 U.S. equities rallied on Thursday, led by the NASDAQ and Russell 2000, which gained 1.12% and 1.15%, respectively.  The Dow Jones and S&P 500 tacked on lesser gains.  Technology (XLK, +1.41%), consumer staples (XLP, +1.38%) and healthcare (XLV, +1.04%) were the leading sectors, while brewers ($DJUSDB, +2.97%), tires ($DJUSTR, +2.83%) and semiconductors ($DJUSSC, +2.67%) led all industry groups. Boeing Co (BA) and Embraer Aircraft (ERJ) inked a strategic partnership, but the market believed ERJ was the loser in the deal as it sunk Read More 

Trading Places with Tom Bowley

Is It Time For A Rally In The Worst Industry Group In 2018?

by Tom Bowley

Market Recap for Tuesday, July 3, 2018 U.S. equities started the holiday-abbreviated trading session on Tuesday quite nicely with gains across each of our major indices.  But that strength deteriorated throughout the day and, by the close, all but the small cap Russell 2000 had finished in negative territory.  The Dow Jones remains above its key price support from the first half of 2018, but also continues to fail at overhead 20 day EMA in the short-term: The red arrow points to a "death cross" where we've seen the 20 day EMA drop below its 50 day SMA.  During Read More 

Trading Places with Tom Bowley

Are Biotechs Poised To Surge? If So, Consider This Giant

by Tom Bowley

Market Recap for Monday, July 2, 2018 A brief recap from yesterday: All of our major indices climbed higher with renewed leadership from the NASDAQ and Russell 2000.  Technology (XLK, +0.89%) and utilities (XLU, +0.71%) led the action, while energy (XLE, -1.47%) was very weak.  Given the jump in crude oil prices this morning, though, I'd expect to see the XLE make another run at short-term price resistance at 77. Gambling stocks ($DJUSCA, -6.03%) held back the consumer discretionary sector (XLY, +0.14%) after Macau reported disappointing revenues.  Wynn Resorts Read More 

Trading Places with Tom Bowley

Watch Potential Channel Support On The NASDAQ 100

by Tom Bowley

Market Recap for Friday, June 29, 2018 The first half of 2018 ended on Friday in bifurcated fashion, which is fitting given that most of 2018 has seen bifurcated action thus far.  The NASDAQ gained nearly 9% in the first six months, with the Russell 2000 not too far behind, gaining more than 7%.  The S&P 500, however, saw only a 1.7% rise and the Dow Jones ended the first half of the year in negative territory as a rising dollar and trade fears sent traders scurrying out of those large multinational companies, especially those on the Dow Jones.  Caterpillar (CAT) Read More 

Trading Places with Tom Bowley

Technology And Financials Lead End Of Month Rebound

by Tom Bowley

Market Recap for Thursday, June 28, 2018 The selling episode went according to plan, with many higher risk areas taking on most of the bears' wrath.  The three worst performing sectors over the past week led the rebound on Thursday.  Technology (XLK, +1.22%), financials (XLF, +0.87%) and consumer discretionary (XLY, +0.79%) were the primary benefactors yesterday as the NASDAQ (+0.79%) paced the rally.  The XLK printed a reversing piercing candle and now looks to move higher and perhaps test its declining 20 day EMA: Note that Thursday's reversal took place at Read More 

Trading Places with Tom Bowley

Dollar Breakout Good News For Small Caps, But Rising Volatility Weighs

by Tom Bowley

Market Recap for Wednesday, June 27, 2018 Trade war fears are dominating the headlines, but U.S. Dollar Index ($USD) strength is quietly making the biggest news of all.  The rising greenback is potentially good news as it signals that the U.S. economy is humming along, and is perhaps stronger than foreign economies.  It also suggests that the relative strength enjoyed by small caps throughout Q2 2018 is likely to extend into Q3.and possibly longer.  A rising dollar does create headwinds for multinationals, however, and that's why we've seen such weak relative performance Read More 

Trading Places with Tom Bowley

Weakness In Railroads Setting Up Trading Opportunities

by Tom Bowley

Market Recap for Tuesday, June 26, 2018 Tepid gains on Wall Street allowed trade fears to subside for a day, but technical indications suggest this is likely just a temporary breather.  The Dow Jones gained 30 points on the session, while the small cap Russell 2000 and tech-laden NASDAQ produced better relative gains of 0.66% and 0.39%, respectively.  Energy (XLE, +1.26%), consumer discretionary (XLY, +0.72%) and technology (XLK, +0.40%) rebounded after rough sessions on Monday.  The XLY has been the strongest sector ETF of late and its ability (or inability) to move back Read More 

Trading Places with Tom Bowley

Comparing 2018 To The Two Previous Bull Market Tops

by Tom Bowley

Market Recap for Monday, June 25, 2018 We ended a bearish historical period yesterday with..well..bearishness.  It was an ugly start to the day on more trade threats and, with an hour left in the session, the Dow Jones was down nearly 600 points.  Buyers did emerge in that final hour, almost slicing the Dow's losses in half, but it was still a nasty day for bulls.  Defensive bonds did well, as did defensive sectors.  Utilities (XLU, +1.66%) and consumer staples (XLP, +0.50%) managed to ignore the selling and post gains, but the rest of the market didn't fare so Read More 

Trading Places with Tom Bowley

Here's An Overlooked Stock To Consider For Second Half 2018

by Tom Bowley

Market Recap for Friday, June 22, 2018 Bifurcated market action once again permeated Wall Street, but with much different results this time.  Instead of the Dow Jones lagging badly and finishing in negative territory, this large cap index broke its eight session losing streak and gained 119 points (+0.49%) on Friday.  The other major indices failed to keep up with the S&P 500 rising just 0.19%, while the more aggressive NASDAQ and Russell 2000 fell 0.26% and 0.20%, respectively.  Energy (XLE, +2.00%) and materials (+1.46%) were the sector leaders and financials Read More 

Trading Places with Tom Bowley

Dollar Reversal Likely Points To Short-Term Shift In Trading Strategy

by Tom Bowley

Market Recap for Thursday, June 21, 2018 The Dow Jones closed lower for the 8th consecutive trading session, this time falling 196 points.  It's been a steady decline, spurred by fears of a trade war with China and a rising U.S. Dollar Index ($USD).  Trade tensions tend to simmer down over time as the headline news fades and the USD failed at a critical price resistance level (see Current Outlook section below).  These two factors have driven the industrials (XLI, -1.26%) significantly lower in recent sessions.  The XLI has declined more than 5% since the Dow Jones Read More 

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