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

Apparel Retailers Sink To Four Month Low

by Tom Bowley

Market Recap for Wednesday, May 22, 2019 Our major indices finished with losses on Wednesday, despite strength in defensive sectors.  The S&P 500 and Dow  Jones held up best, falling just 0.28% and 0.39%, respectively.  The primary reason is that more defensive stocks are represented on those two indices.  Defensive sectors actually performed quite well yesterday with utilities (XLU, +0.75%), healthcare (XLV, +0.57%), real estate (XLRE, +0.47%), and consumer staples (XLP, +0.45%) all gaining.  If you were seeking relative strength, you needed to be in those Read More 

Trading Places with Tom Bowley

What's Wrong With Small Caps And Will June Seasonality Kick In?

by Tom Bowley

Market Recap for Tuesday, May 21, 2019 The U.S. stock market rebounded on Tuesday after a 90 day temporary license was granted by the U.S. Department of Commerce to Huawei, a Chinese multinational telecommunications equipment company.  Technology stocks (XLK, +1.23%) were a primary beneficiary of this action and trailed only materials (XLB, +1.54%) in terms of Tuesday sector performance.  Semiconductors ($DJUSSC, +2.01%) surged higher, but still face important technical hurdles ahead: The 2% rise was nice, but note that uninspiring candle.  It wasn't Read More 

Trading Places with Tom Bowley

Semiconductors Take Another Big Hit, Support At Hand

by Tom Bowley

Market Recap for Monday, May 20, 2019 Monday marked another rough May trading day, especially for the NASDAQ, which dropped 1.46%.  The other major indices fell, but to a much lesser extent.  Technology (XLK, -1.74%) and communication services (XLC, -1.65%) were hardest hit as weakness in semiconductors ($DJUSSC, -3.89%) and internet ($DJUSNS, -1.69%) took a toll on their respective sectors.  The DJUSSC could have hit an important support level, however, and is featured below in the Sector/Industry Watch section. The DJUSNS has been faltering beneath its 20 day Read More 

Trading Places with Tom Bowley

Financial Administration Relative Strength - When Will It End?

by Tom Bowley

Market Recap for Friday, May 17, 2019 Friday offered up a mixed bag.  Our major indices were either higher or near the flat line with an hour left in the trading day.  Then more discussion surfaced that US-China trade talks had stalled.  That sent U.S. equities spiraling lower, especially areas that have been hit hard previously by trade talk failures like semiconductors ($DJUSSC, -1.88%).  That group has seen a steady push lower for the last 3-4 months and it likely won't get any better this morning with U.S. futures pointing to a weak open: Read More 

Trading Places with Tom Bowley

Cisco Earnings Drive Telecom Equipment Higher

by Tom Bowley

Market Recap for Thursday, May 16, 2019 Cisco Systems, Inc. (CSCO, +6.66%) reported its latest quarterly results after the bell on Wednesday, beating both revenue and EPS estimates, and provided a solid outlook.  It was just what the telecom equipment group ($DJUSCT, +4.53%) needed after trending lower for the past month and fading on a relative basis vs. the benchmark S&P 500: I would watch those support zones above very closely.  Given the strength of CSCO's earnings, the group should not violate the annotated support levels.  If it does, I'd grow more bearish Read More 

Trading Places with Tom Bowley

Is The 6 Week Relative Outperformance In Financials Over?

by Tom Bowley

Market Recap for Wednesday, May 15, 2019 Falling treasury yields put a lid on many industries within financials (XLF, -0.37%), while renewed strength in the U.S. Dollar Index ($USD) kept pressure on materials (XLB, -0.26%).  Other than those two sectors, it was primarily a very bullish day.  The NASDAQ was the best performing index, gaining 1.13%.  There was fairly wide participation, however, as the S&P 500, Dow Jones, and Russell 2000 climbed 0.58%, 0.45%, and 0.34%, respectively.  Leadership was felt in communication services (XLC, +2.24%), technology (XLK Read More 

Trading Places with Tom Bowley

April Retail Sales Are Out, But Will It Help?

by Tom Bowley

Market Recap for Tuesday, May 14, 2019 We've seen little economic or earnings news of late and that's beginning to show in the randomness of the huge S&P 500 moves based on President Trump's tweets regarding US-China trade.  Sometimes it's simply rumors swirling that's been taking center stage.  In any event, the swings have been dizzying and yesterday was another example as the Dow Jones gained more than 200 points, bouncing off the price support established in March: An RSI reading that tests 30 and a daily PPO that crosses into negative territory is not what Read More 

Trading Places with Tom Bowley

Seasonality Highlights An Average 36.3% Spring To Summer Gain For This Stock

by Tom Bowley

Market Recap for Monday, May 13, 2019 It was a very rough day on Wall Street yesterday.  Mondays are historically the worst day of the week, but I doubt too many market participants were expecting the blood bath that we saw.  Aggressive areas of the market were hit hardest, including the NASDAQ and Russell 2000, which fell 3.41% and 3.18%, respectively.  The sectors hit hardest were technology (XLK, -3.77%), communication services (XLC, -3.10%), consumer discretionary (XLY, -2.98%), financials (XLF, -2.91%), and industrials (XLI, -2.85%).  Those are the five aggressive Read More 

Trading Places with Tom Bowley

5 Monday Stocks With Strong Reward To Risk Setups

by Tom Bowley

Market Recap for Friday, May 10, 2019 After another morning of very weak action in U.S. stocks, we saw another afternoon recovery on Friday as all of our major indices finished in positive territory.  It certainly felt good, but the truth of the matter is that nothing has been resolved that was feeding into the market's nervousness last week and we're seeing more selling this morning as the weak futures suggest. While the big reversal on Friday appeared promising, traders were not committed to it.  Utilities (XLU, +1.79%), materials (XLB, +1.36%), consumer staples (XLP Read More 

Trading Places with Tom Bowley

Here's A Defensive Health Care Stock That Loves The Next 3 Months

by Tom Bowley

Market Recap for Thursday, May 9, 2019 Here's my takeaway from yesterday's action.  We had a solid recovery off of earlier intraday lows, but the downtrend remains firmly in place and we need to respect that.  Volatility ($VIX) is important to watch because spikes in this sentiment index typically mark very important stock market bottoms.  So let's watch to see if nervousness in the market begins to dwindle.  Fear drives impulsive selling episodes and the VIX is sometimes referred to as the "fear index". The downtrend this week on the S&P 500 Read More 

Trading Places with Tom Bowley

Wall Street Gets Reprieve But Futures Are Red Again

by Tom Bowley

Market Recap for Wednesday, May 8, 2019 It was a much quieter day on Wall Street and it showed across our major indices and sectors.  We finished with bifurcated action as the Dow Jones managed to finish with a minor 2 point gain.  The other major indices ended with losses, led by the small cap Russell 2000, which fell 0.49%.  It was a mixture of gains and losses on the sector leaderboard as utilities (XLU, -1.37%) was the obvious laggard.  The remaining 10 sectors, however, either climbed or fell less than 0.25%.  Healthcare (XLV, +0.21%) provided minor Read More 

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