Trading Places with Tom Bowley

Dollar And Gold Appear To Be Reversing Trends At Key Levels

Market Recap for Thursday, January 20, 2017

The industrial sector (XLI, +0.73%) was the only sector to finish in positive territory as railroads ($DJUSRR) broke out on massive volume Thursday.  CSX Corp (CSX) soared more than 23% after Canadian Pacific's (CP) CEO Hunter Harrison announced he was quitting at CP and had interest in being hired at CSX.  A Morgan Stanley analyst quickly upgraded CSX and the railroads took off.

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Consumer Stocks Strengthening To Open 2017

Market Recap for Wednesday, January 18, 2017

Financials (XLF, +0.83%) were back on track Wednesday as mortgage finance ($DJUSMF), life insurance ($DJUSIL), investment services ($DJUSSB) and banks ($DJUSBK) led the equity charge.  It was a bifurcated day with the Dow Jones retreating, but the S&P 500, NASDAQ and Russell 2000 all finished higher - with the latter two aggressive indices outperforming again.  On the daily chart, the NASDAQ 100 looks the best technically with its recent breakout and strong momentum.  Have a look:

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Tobacco Smokes On Tuesday To Lead Consumer Staples

Market Recap for Tuesday, January 17, 2017

Money rotated towards defense on Tuesday as our major indices saw a day of profit taking.  The small cap Russell 2000 was hit particularly hard, dropping 1.44%.  But all of the key indices were lower as the banks' failure to break out on heavy volume Friday came back to haunt them yesterday.  The Dow Jones U.S. Banks Index ($DJUSBK) tumbled 3.36% in what was easily their worst day of trading since the huge run up began in early November.  Take a look at the short-term technical damage inflicted:

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Is The Market Topping Or Just Starting?

Market Recap for Friday, January 13, 2017

Friday may have seemed like a ho-hum kinda day as the Dow Jones actually finished with a loss for the session.  But there was significant strength in both the more aggressive NASDAQ and Russell 2000, not to mention that the four sector leaders were financials (XLF, +0.56%), industrials (XLI, +0.38%), consumer discretionary (XLY, +0.37%) and technology (XLK, +0.30%).  I love days where these four sectors lead the market.  Making things even more bullish was the NASDAQ's breakout to another all-time high.

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Bank Profits Soar, Travel Stocks Ready To Fly?

Market Recap for Thursday, January 12, 2017

Healthcare (XLV, +0.10%) and utilities (XLU, +0.08%) finished in positive territory and provided sector leadership on Thursday, but the remaining sectors and all of our major indices finished the day in negative territory.  Financial stocks (XLF, -0.85%) performed worst as aggressive components like banks ($DJUSBK) and life insurance ($DJUSIL) struggled while the safer REIT stocks provided the only strength in the sector.

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Dollar Weakness Aiding Gold And Silver.....For Now

Market Recap for Wednesday, January 12, 2017

The U.S. Dollar Index ($USD) fell for the fourth time in the past six trading sessions after sideways consolidating for a couple weeks prior.  This hesitation and recent profit taking has provided fuel for a rebound in gold ($GOLD) and silver ($SILVER) prices.  I believe this sudden turn will be short-term in nature and that the longer-term trends in play will prevail.  For now, however, you can see the inverse correlation from the chart below:

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Airlines Jump On Lower Crude Oil Prices

Market Recap for Tuesday, January 10, 2017

It was another bifurcated market day on Tuesday, but under the surface there was much more bullishness than on Monday.  For one, six sectors rose instead of one.  Secondly, all of the aggressive sectors gained ground, led by industrials (XLI, +0.42%) and consumer discretionary (XLY, +0.36%).  Healthcare (XLV, +0.35%), the hottest sector in 2017 thus far, extended its winning streak to six consecutive sessions, but may have hit a short-term wall of resistance putting its winning streak in jeopardy.  Take a look:

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NASDAQ Breaks Out, Still Waiting On Dow

Market Recap for Monday, January 9, 2017

Dow 20k watchers were left hanging another day as the NASDAQ was the only major index to gain ground on Monday.  And speaking of lone leaders, healthcare (XLV, +0.42%) was the only sector to post a gain as falling crude oil prices ($WTIC) sent energy shares (XLE, -1.48%) reeling to only their second close beneath their rising 20 day EMA since this major rally began in early November.  Energy bulls will be under pressure to turn things around quickly or rely on the longer-term weekly chart for support.  Take a look:

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Dow 19999 - Close Enough?

Market Recap for Friday, January 6, 2017

Let's party like it's 1999.....9.  Do you think that big round numbers don't matter on Wall Street?  If so, you might want to think again.  Since December 13th, the Dow Jones ($INDU) has traded above 19950 on nine separate occasions without once clearing 20000, not even on an intraday basis.  Friday's high of 19999.63 stopped just 0.37 points shy of that magical number.  Is it really that meaningful though?  Not really, but it gives CNBC some material to talk about ad nauseam.

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Summary Of Sector Relative Strength By Calendar Month

Normally, I provide a daily blog article every day that the U.S. stock market is open.  That eliminates Saturdays and Sundays.  I'm making an exception today to share some historical information that I believe you'll find useful as you work your way through 2017.  Also, the following historical information will be a perfect lead in to a special webinar series that will begin next Saturday, January 14, 2017.  Greg Schnell and I will be co-hosting "2017 Stock Market Outlook" at 11am EST, providing some of our best ideas for 2017.  It's the first of a monthly series throughout 2017 where we'll look to provide education, timely commentary and delve into many of the useful tools and features at  It's a benefit we're providing to subscribers here at StockCharts.  There will be no charge for members.

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