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

Keep An Eye On Short-Term NASDAQ Support In This Zone

by Tom Bowley

Market Recap for Friday, July 19, 2019 Wall Street finished on a very weak note on Friday as hopes for a 50 basis point reduction in the fed funds rate decreased.  There is now a much stronger likelihood of a 25 basis point drop when the Fed meets for two days next week.  News that Iran seized a British oil tanker also concerned traders, although it did help crude oil prices ($WTIC, +0.61%)  jump after a very difficult week in which oil had fallen more than 8% prior to the slight push higher on Friday.  The energy ETF (XLE, +0.46%) trailed only industrials (XLI Read More 

Trading Places with Tom Bowley

Netflix (NFLX) Gets Crushed And Here Was Our Clue

by Tom Bowley

Special Note I'm on vacation this week so I'm writing brief articles and in a different format.  There will be no article tomorrow, Friday, July 19th. Netflix (NFLX) Hammered In After Hours Despite topping both revenue and EPS estimates, NFLX is trading lower by nearly 11% this morning as subscribership fell short of expectations.  I'm not shocked at all.  Listen, I subscribe to NFLX and it's a great company with a history of proven growth and it provides a great service at a reasonable cost.  But..Wall Street wasn't impressed heading into this earnings report so Read More 

Trading Places with Tom Bowley

Scanning For High SCTRs And Dividend Yield

by Tom Bowley

Special Note I'm on vacation this week, so my articles are in a different format and generally shorter.  There will be no blog article on Friday.   I've created three portfolios over the past year.  My Model Portfolio began on November 19, 2018 and my Aggressive Portfolio and Income Portfolio both started on May 19, 2019.  They've all performed at a very high level.  While the nature of the stocks is different among portfolios, there's one common thread - relative strength.  All 30 stocks included in these portfolios have demonstrated the ability to Read More 

Trading Places with Tom Bowley

We're Off To The Races If These 3 Break Out

by Tom Bowley

Special Note I'm on vacation this week so I'll post mostly abbreviated articles.  There will be no blog article on Friday. Current Outlook One confirmation signal that I always look for during a bull market is leadership from our 5 aggressive sectors - technology (XLK), consumer discretionary (XLY), communication services (XLC), industrials (XLI), and financials (XLF).  Currently, the XLK and XLY are in record high territory as money has poured into these two key sectors.  That is undeniably bullish in my view.  The relative strength in the other 3 has been okay, but Read More 

Trading Places with Tom Bowley

Transports Soar To Lift Wall Street To Yet Another Record

by Tom Bowley

Special Note I am on vacation this week so I'll post mostly abbreviated blog articles.  There will be no blog article on Friday morning. Market Recap for Friday, July 12, 2019 Industrials (XLI, +1.75%) powered our major indices to fresh new all-time highs.  Transports ($TRAN) were particularly strong as truckers ($DJUSTK, +4.51%), airlines ($DJUSAR, +1.79%), and railroads ($DJUSRR, +1.58%) all had solid days.  The DJUSAR broke to a new 2019 high: Last Tuesday, I had posted the above chart showing the key price resistance.  Yesterday's big advance cleared Read More 

Trading Places with Tom Bowley

It Was A Record-Breaking Day On Wall Street

by Tom Bowley

Market Recap for Thursday, July 11, 2019 Dow Jones ($INDU, +0.85%) 27000 is in the record books as another milestone has been reached on Wall Street.  The S&P 500 ($SPX, +0.23%) also set another record high close, but fell just short of closing above the psychological 3000 level.  The SPX finished at 2999.91.  The NASDAQ ($COMPQ, -0.08%) had a bit of a roller coaster ride, from positive to negative and then rallying in the final two hours to nearly complete the all-time high trifecta.  The Russell 2000 ($RUT, -0.46%) did what it's been doing for the past Read More 

Trading Places with Tom Bowley

Why The Bullish Argument REQUIRES Strengthening Of Transportation Stocks

by Tom Bowley

Market Recap for Wednesday, July 10, 2019 The S&P 500 ($SPX, +0.45%) surpassed 3000 on an intraday basis for the first time in history on Wednesday, although it failed to close there.  Permabears don't understand how this is even possible, with the ongoing trade war and all.  But let me remind everyone of one very important stock market rule. Don't fight the Fed (and central bankers everywhere). Fed Chair Jerome Powell testified before Congress yesterday and effectively communicated that the Fed would lower rates at the end of this month.  I'm Read More 

Trading Places with Tom Bowley

Will The FAANG Stocks Report Blowout Earnings? 2 Will, But Not This One

by Tom Bowley

Market Recap for Tuesday, July 9, 2019 Despite the Dow Jones ($INDU, -0.08%) finishing in negative territory, I'd argue it was a pretty solid day on Wall Street.  All of our major indices opened lower, but there was buying throughout the session, much like Friday.  We saw leadership from aggressive areas as the NASDAQ rose 0.54% and the small cap Russell 2000 was able to climb into positive territory by the close, ending higher by 0.08%.  All aggressive sectors rose as well, with industrials (XLI, -0.22%) the only exception.  Airlines ($DJUSAR, -1.09%) and Read More 

Trading Places with Tom Bowley

Apple Downgraded To Sell, Likely Becomes A Buy

by Tom Bowley

Market Recap for Monday, July 8, 2019 Materials (XLB, -1.15%) led the Monday decline as the U.S. Dollar Index ($USD, +0.10%) extended its recent gains, climbing for the 7th time in the last 9 sessions.  Given the strong jobs report on Friday, fewer market participants are expecting a 50 basis point reduction in the fed funds rate when the FOMC meets later this month.  That has helped to strengthen the dollar after a very difficult June for the greenback. The Dow Jones and S&P 500 outperformed on a relative basis, dropping just 0.43% and 0.48%, respectively Read More 

Trading Places with Tom Bowley

Leading 1st Half Industry Group Breaks Out Again

by Tom Bowley

Market Recap for Friday, July 5, 2019 The small cap Russell 2000 ($RUT, +0.22%) led bifurcated action on a very quiet Friday as many market participants were on an extended vacation spanning the July 4th holiday.  Strength was seen in financials (XLF, +0.28%) as the 10 year treasury yield ($TNX) jumped 10 basis points to 2.05%.  An increase in treasury yields typically has the effect of a strengthening net interest margin for banks ($DJUSBK, +0.78%), so it wasn't at all surprising to see that industry group outperform.  The jump in the TNX was the largest since the Read More 

Trading Places with Tom Bowley

Dow Jones Sets New Record To Join S&P 500

by Tom Bowley

Market Recap for Wednesday, July 3, 2019 26 of 30 Dow Jones component stocks advanced as the most widely known stock index set all-time intraday and closing highs one day before Independence Day and during an abbreviated session.  It gives traders an extra day to relax and reflect on the Dow's climb to clear its previous all-time high set on October 3rd, 2018.  The Dow Jones rose 0.67% to close just beneath the 27000 level.  Meanwhile, the S&P 500 gained 0.77% to end the session at 2995, threatening to clear an important psychological level at 3000 and also closing at Read More 

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