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

Dow Jones Gains Over 500 On Strong Earnings

by Tom Bowley

Market Recap for Tuesday, October 16, 2018 Wall Street welcomed a trend day to at least temporarily pause the violent downtrend we've experienced the past couple weeks.  A trend day typically starts with a gap higher and then gains are extended throughout the session.  We clearly saw that as the Dow Jones finished with a gain of 547 points, or 2.17%.  Money rotated back towards aggressive areas of the market as the NASDAQ outperformed, climbing a very solid 215 points, or 2.89%.  The small cap Russell 2000 ($RUT, +2.82%) outperformed the benchmark S&P 500 (+2.15%) Read More 

Trading Places with Tom Bowley

The Yield Spread (Curve) Is Worrisome For Banks

by Tom Bowley

Market Recap for Monday, October 15, 2018 A late afternoon selling binge pushed our major indices into negative territory by the close, with the lone exception being the small cap Russell 2000 ($RUT), which avoided a relative breakdown vs. the benchmark S&P 500.  Small caps have been languishing and significantly underperforming large caps since the start of September as you can see from the following chart: Despite yesterday's small cap rally, you can see that the RUT has broken beneath its 50 week SMA for the first time since the early-2016 swoon.  On a relative basis Read More 

Trading Places with Tom Bowley

History Says To Watch Those 60 Minute Charts For Bottoming Clues

by Tom Bowley

Market Recap for Friday, October 12, 2018 Finally, Wall Street saw buying pressure to end a trading session.  That certainly felt great psychologically, although as I point out below, I doubt that the short-term bottom is in.  It's possible, but the odds favor another short-term plunge.  For now, however, let's rejoice in the market's Friday reversal.  All of our major indices finished the day in positive territory, but it was quite an effort for the Russell 2000 small cap index to turn positive.  The RUT performed horribly on a relative basis throughout the Read More 

Trading Places with Tom Bowley

Bears Retain Grip on Wall Street as Fears Grow

by Tom Bowley

Special Note I will be speaking to the Charlotte Chapter of the American Association of Individual Investors (AAII) tomorrow Saturday, October 13th at 10:00am EST.  I plan to discuss how to evaluate the sustainability of a bull market, relative strength and gap trading strategies.  The first meeting is FREE to non-members, so if you're in the Charlotte area, please stop by and say hello!  For more information, CLICK HERE. Market Recap for Thursday, October 11, 2018 It was another difficult day for Wall Street, with most of our Read More 

Trading Places with Tom Bowley

VIX Surges 43% To Lead Major Selloff

by Tom Bowley

Special Note I will be speaking to the Charlotte Chapter of the American Association of Individual Investors (AAII) this Saturday, October 13th at 10:00am EST.  I plan to discuss how to evaluate the sustainability of a bull market, relative strength and gap trading strategies.  The first meeting is FREE to non-members, so if you're in the Charlotte area, please stop by and say hello!  For more information, CLICK HERE. Market Recap for Wednesday, October 10, 2018 It was simply one of those days where it didn't matter what you owned Read More 

Trading Places with Tom Bowley

Energy Continues To Lead But Failed At Key Resistance

by Tom Bowley

Special Note I will be speaking to the Charlotte Chapter of the American Association of Individual Investors (AAII) this Saturday, October 13th at 10:00am EST.  I plan to discuss how to evaluate the sustainability of a bull market, relative strength and gap trading strategies.  The first meeting is FREE to non-members, so if you're in the Charlotte area, please stop by and say hello!  For more information, CLICK HERE. Market Recap for Tuesday, October 9, 2018 Energy shares (XLE, +0.89%) were in favor on Tuesday as crude oil prices ($WTIC) Read More 

Trading Places with Tom Bowley

Consumer Staples And Real Estate Lead Rally

by Tom Bowley

Market Recap for Monday, October 8, 2018 Consumer staples (XLP, +1.38%) and real estate (XLRE, +1.29%) helped to power Monday's reversal, but that was not enough to turn around the fortunes for the NASDAQ, which still dropped more than 50 points as technology (XLK, -1.13%) stumbled for a third consecutive day.  It's difficult to believe that the XLK was at an all-time high last Wednesday.  Software ($DJUSSW) and semiconductor ($DJUSSC) stocks have been under intense selling pressure, reminiscent of the late-June selling. While yesterday's bullishness in consumer Read More 

Trading Places with Tom Bowley

VIX Hits Highest Level In 3 Months - What That Means

by Tom Bowley

Market Recap for Friday, October 5, 2018 There was good news and bad news Friday on the volatility front.  The Volatility Index ($VIX) hit 17.36 intraday on Friday, the highest level of expected volatility since the late-June swoon, and it closed another 4% higher after a big spike on Thursday.  High and rising volatility favors the bears in the near-term.  The good news for the bulls, however, is that the VIX left a long tail to the upside on Friday and might have peaked.  A topping VIX is generally associated with short-term S&P 500 bottoms: Read More 

Trading Places with Tom Bowley

Deep Selling Grips Wall Street, Support Levels To Watch

by Tom Bowley

Market Recap for Thursday, October 4, 2018 While we've seen plenty of market rotation over the past several months, there hasn't been much outright selling.  Yesterday changed that.  The NASDAQ recovered off of its intraday lows a bit to "only" close down 1.81% on the session.  The NASDAQ was easily the worst performing index, but it had plenty of company.  Hardest hit areas included many of the best performing industries of 2018.  Specialty retailers ($DJUSRS) were among the poor performers and are featured in the Sector/Industry Watch section below Read More 

Trading Places with Tom Bowley

10 Year Treasury Yield Explodes To 7 Year High; Financials Lead

by Tom Bowley

Market Recap for Wednesday, October 3, 2018 The 10 year treasury yield ($TNX) did the inevitable - it closed above 3.11% and the TNX now resides at a level not seen since 2011.  There will be those who say that higher interest rates will be the beginning of our next recession.  Eventually they could be right, but in the foreseeable future, I'm not buying it.  The Fed's rate hiking campaign, and the subsequent breakout in the TNX, is occurring off historic lows.  We haven't been in an environment like our current one since the 1960s.  Our economy is growing Read More 

Trading Places with Tom Bowley

Defensive Stocks Lead Bifurcated Market

by Tom Bowley

Market Recap for Tuesday, October 2, 2018 The Dow Jones rallied for a fourth consecutive day to close in all-time record high territory, eclipsing the previous high set on September 21st.  Unfortunately, the rest of the market didn't get the memo as small cap stocks, in particular, were sold off rather rudely.  While the Dow Jones was gaining more than 100 points, the Russell 2000 lost more than 1% for a second consecutive day to open up the fourth quarter.  The interesting part is that this isn't unusual historically for the Russell 2000 (more on that below in Historical Read More 

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