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

Railroads Hold One Of The Bull Market Keys

by Tom Bowley

Market Recap for Wednesday, March 7, 2018 It was a day of bifurcation, but it was good bifurcation - if that makes any sense.  When the stock market jury is split as we saw on Wednesday, I prefer that our aggressive market areas perform well and defensive areas lag.  Well, the very aggressive small cap Russell 2000 ($RUT) was the leading index, gaining 0.79% on the session.  The NASDAQ rallied 0.33%.  The more defensive benchmark S&P 500 nearly completed its intraday comeback attempt, finishing down just 1 point (after being down 26 points, or nearly 1% earlier in Read More 

Trading Places with Tom Bowley

Retail Regaining Strength And In The Middle Of Its Seasonal Sweet Spot

by Tom Bowley

Market Recap for Tuesday, March 6, 2018 Materials (XLB, +1.10%) and consumer discretionary (XLY, +0.69%) led a modest stock market rally here in the U.S. on Tuesday.  The small cap Russell 2000 gained more than 1% to once again outperform its larger cap counterparts.  The NASDAQ also outperformed, continuing its recent history of outperformance.  Check out how both the NASDAQ and Russell 2000 have been performing relative to the benchmark S&P 500: While they've both been strong on a relative basis recently, clearly it's the NASDAQ that has shown consistent Read More 

Trading Places with Tom Bowley

Leading Industry Prints Reversing Candle; Dow Jumps Over 300 Points

by Tom Bowley

Market Recap for Monday, March 5, 2018 The Dow Jones surged on Monday, gaining 337 points (+1.37%) to lead all of our major indices higher.  Two stalwarts - Caterpillar (CAT, +3.24%) and Boeing (BA, +2.34%) - were the leaders, but we saw 29 of the 30 Dow components gain yesterday.  The one bad apple?  No, it wasn't Apple (AAPL, +0.35%), although this tech giant did finish 28th out of 30 within the Dow.  The shoe just didn't fit for Nike (NKE, -1.27%), which had the distinction of being the "sole" Dow stock to finish in negative territory on an otherwise very Read More 

Trading Places with Tom Bowley

Medical Supplies Print Reversing Candle, Small Caps Surge And Monday Setups

by Tom Bowley

Market Recap for Friday, March 2, 2018 The Dow Jones finished with a 71 point loss on Friday, thanks in part to another very weak performance by McDonalds (MCD).  Apparently, their $1, $2, $3 menu is falling short of expectations and it's clearly reflected in recent price action.  MCD now has a SCTR of 11, placing it on a par with Proctor & Gamble (PG) and Merck (MRK), but still soundly beaten (in a bearish way) by General Electric (GE), which remains under significant selling pressure. Outside of the Dow Jones, however, market action was quite solid on Read More 

Trading Places with Tom Bowley

S&P 500 Loses Key Support, Odds Of A Bottom Retest Grow

by Tom Bowley

Market Recap for Thursday, March 1, 2018 Any time the Volatility Index ($VIX) rises 13%, it's not going to be a great day on Wall Street.  Fear equals selling and selling is exactly what we saw on Thursday.  There was a bit of a late day rally, but it wasn't enough to avoid a short-term price breakdown.  I posted previously that a key short-term price support zone on the benchmark S&P 500 resided at 2690-2700 and we lost it yesterday: The 1.33% drop in the SPX now appears to set us up for a test of gap support in the 2620-2635 area. Only Read More 

Trading Places with Tom Bowley

Looking For Seasonal Strength? Check Out This Leading Stock From A Leading Industry

by Tom Bowley

Market Recap for Wednesday, February 28, 2018 Outside of the final two hours on Wednesday, it was a fairly boring day.  We gapped higher at the open, sold off to fill the gap, and then moved back into positive territory..until the final two hours.  Selling returned in a big way and volume increased as traders decided to book profits from the latest advance and watch from the sidelines.  On the S&P 500, which fell over 30 points, or 1.11%, on the session, the key upcoming support level is in the 2690-2700 area, as identified in the chart highlighted in the Current Read More 

Trading Places with Tom Bowley

3 Takeaways From Tuesday's Renewed Selling...And Why I'd Avoid Gold

by Tom Bowley

Market Recap for Tuesday, February 27, 2018 During a day filled with renewed selling, especially in the final 10 minutes, there were 3 key takeways as far as I'm concerned.  First, the short-term uptrend appeared to have been broken at the end of the day as gap, price and 20 hour EMA support were lost on the S&P 500: Next support would be trendline support somewhere near 2730.  Loss of that level would set up another key price support test in the 2690-2700 area.  A move beneath that zone would likely trigger much more fear. Speaking of fear Read More 

Trading Places with Tom Bowley

Software Breaks Out; Semis, Computer Hardware Next In Line

by Tom Bowley

Market Recap for Monday, March 26, 2018 Monday was a very solid day for U.S. equities.  All of our major indices roared to higher levels, led by the 400 point gain on the Dow Jones Industrial Average ($INDU).  Eight of nine sectors advanced, with only the defensive utilities group (XLU, -0.30%) finishing in the red.  Technology (XLK, +1.57%) led the power surge as telecom equipment ($DJUSCT) broke to a new all-time high behind strength from QUALCOMM (QCOM).  QCOM's 5.78% rise put it within reach of a key breakout: Semiconductors ($DJUSSC) and computer Read More 

Trading Places with Tom Bowley

Looking For March Seasonal Strength? Check These Two Out

by Tom Bowley

Market Recap for Friday, February 23, 2018 After a steady diet of afternoon flops recently, our major indices soared into Friday's close, clearing important overhead resistance in the process.  All major indices finished with 1% gains or more, setting the stage for what could be a very solid week ahead.  The NASDAQ gained 1.79% to lead the charge, but there was a solid 1.60% advance on the S&P 500 as well.  All nine sectors participated in Friday's rally, a bullish sign indeed, although utilities (XLU, +2.61%) were atop the leaderboard, benefiting from a 5 basis point Read More 

Trading Places with Tom Bowley

Higher Treasury Yields Crushing Last Year's Darling - Home Construction

by Tom Bowley

Market Recap for Thursday, February 22, 2018 U.S. indices continued to tread water on Thursday, with mixed action among our major indices and sectors.  The Dow Jones posted a triple digit gain (165 points), but the more aggressive NASDAQ and Russell 2000 indices both fell fractionally.  Volatility ($VIX) subsided a bit with the VIX falling roughly 6.5% back to 18.72.  While the VIX has settled down a lot from the 50 level that we witnessed earlier in February, it remains elevated and should be respected.  Another rapid selloff remains possible and we know that during Read More 

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