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

Negative Divergences Could Wreak Havoc On U.S. Stocks

by Tom Bowley

Market Recap for Monday, March 18, 2019 U.S. stocks moved modestly higher on Monday, extending Friday breakouts on both the S&P 500 (+0.37%) and NASDAQ (+0.34%).  The Russell 2000 gained 0.67% to lead the action.  Crude oil prices ($WTIC, +1.47%) topped $59 per barrel as energy shares (XLE, +1.39%) were atop the sector leaderboard.  But it wasn't all about energy.  Financials (XLF, +1.01%), industrials (XLI, +0.97%) and consumer discretionary (XLY, +0.97%) - three aggressive sectors - all performed exceptionally well.  The laggards were primarily Read More 

Trading Places with Tom Bowley

Here's A Gem In Apparel Retail

by Tom Bowley

Market Recap for Friday, March 15, 2019 It was another solid day for the bulls to close out last week.  It was also quad-witching options expiration Friday, which typically results in much-heavier-than-usual volume.  Volume was certainly heavy on Friday.  Leadership was found in the aggressive NASDAQ, which jumped 0.76%.  The Dow Jones and S&P 500 followed with gains of 0.54% and 0.50%, respectively, while the small cap Russell 2000 lagged again, rising just 0.25%.  The Russell 2000's poor relative performance is a concern and is illustrated in the Current Read More 

Trading Places with Tom Bowley

Transports Going Along For The Ride

by Tom Bowley

Market Recap for Thursday, March 14, 2019 Thursday was a day of rest and bifurcated action.  The Dow Jones gained ground, albeit a rather miniscule 7 points, but the other major indices fell.  The Russell 2000, NASDAQ and S&P 500 dropped 0.40%, 0.16%, and 0.09%, respectively, as materials (XLB, -0.75%) struggled with a rallying dollar ($USD, +0.31%).  Energy (XLE, +0.11%) didn't suffer the same dollar-related fate, however, as crude oil prices ($WTIC, +0.60%) rose for a fourth consecutive day and ended with its highest close since mid-November. Read More 

Trading Places with Tom Bowley

Earnings Could Send ULTA Flying

by Tom Bowley

Market Recap for Wednesday, March 13, 2019 It was another strong day on Wall Street.  All 11 sectors moved higher for the second time this week.  Industrials (XLI, +0.88%) represent the only sector to have posted a daily loss this week.  The other 10 sectors have shown gains all three days.  Wide participation to the upside is a strong indication of renewed market strength and is a primary characteristic of bull markets.  The Dow Jones (+0.58%) actually participated to the extent of the other major indices as Boeing (BA, +0.46%) finally showed a bit of strength Read More 

Trading Places with Tom Bowley

Internet Goes 'Round The (RRG) World In 20 Days

by Tom Bowley

Market Recap for Tuesday, March 12, 2019 Boeing (BA, -6.15%) was once again a major drag on the Dow Jones as that index ended the session in negative territory (-0.38%), while our other indices were positive.  The NASDAQ (+0.44%) was the best performing index as 10 of 11 sectors finished higher.  Industrials (XLI, -0.83%) was negatively impacted by Boeing as well.  Aerospace ($DJUSAS, -3.50%) and airlines ($DJUSAR, -2.00%) were the two weakest industries and clearly held back industrials. Healthcare (XLV, +0.73%) jumped to the top of the sector leaderboard Read More 

Trading Places with Tom Bowley

Market Rallies But Yield Spread Continues To Hurt Banks

by Tom Bowley

Market Recap for Monday, March 11, 2019 It never hurts to have Apple, Inc. (AAPL, +3.46%) breakout and that's what happened on Monday.  It not only lifted the technology sector (XLK, +2.15%), but it provided a spark to our major indices as we experienced a "trend" day, where we opened higher and built on those opening gains all day long.  The NASDAQ leapt 2.02% to claim the top index prize, but the Russell 2000 and S&P 500 weren't too far behind with gains of 1.77% and 1.47%, respectively.  The Dow Jones, impacted by a very poor showing by Boeing (BA, -5.33%), climbed a Read More 

Trading Places with Tom Bowley

Poor Jobs, Big Reversal, What's Next?

by Tom Bowley

Market Recap for Friday, March 8, 2019 Friday started ugly.  There's no way to sugar coat the worst jobs report in 18 months.  Nonfarm payrolls fell way short of expectations, 20,000 actual vs. 175,000 consensus estimate.  Slowing job growth was an excellent predictor of the last two bear markets, so this shortfall cannot be underestimated.  But.it was just one report and it comes on the heels of the recent government shutdown and in the midst of the lingering US-China trade war.  It also comes one month after an unusually strong January nonfarm payrolls that Read More 

Trading Places with Tom Bowley

Jobs Disappoint; Dollar Breakout Bad For Energy, Materials

by Tom Bowley

Market Recap for Thursday, March 7, 2019 Selling in U.S. equities continued for a fourth consecutive session as this is easily the most difficult period in 2019 for the equity bulls.  The first technical breakdown occurred on daily charts as all of our major indices closed beneath their respective 20 day EMAs.  Short-term technical health will not return until the bulls are able to reclaim this key moving average.  Here's the S&P 500 chart: After losing 20 day EMA support, a couple upcoming support levels should be monitored.  We are likely going Read More 

Trading Places with Tom Bowley

VIX Clears First Key Level, Bears Regain Grip

by Tom Bowley

Market Recap for Wednesday, March 6, 2019 All of our major indices took a hit yesterday, including the small cap Russell 2000 ($RUT), which once again lagged badly and dropped another 2.01%.  The RUT was easily the worst performer as the Dow Jones, S&P 500 and NASDAQ lost 0.52%, 0.54% and 0.93%, respectively.  More importantly, the RUT fell below its 20 day EMA for the first time since regaining that key moving average in early 2019: Like the S&P 500, the Russell 2000 moved up last week to test its October reaction high.  That's where the bullish trend failed and Read More 

Trading Places with Tom Bowley

Relative Strength Says We're Going Higher

by Tom Bowley

Market Recap for Tuesday, March 5, 2019 Another weak start and the inability to finish well contributed to minor losses across our major indices on Tuesday.  Relative weakness in the small cap Russell 2000 resulted in a 0.45% loss there, while our other major indices fell more modestly - Dow Jones (-0.05%), S&P 500 (-0.11%) and NASDAQ (-0.02%).  8 of the 11 sectors finished in negative territory, led primarily by industrials (XLI, -0.64%), which had been the best performing sector of 2019, gaining just over 17% since the start of the year.  Diversified industrials Read More 

Trading Places with Tom Bowley

This Financial Sector Group Has Caught Fire

by Tom Bowley

Market Recap for Monday, March 4, 2019 It's really hard for me to say who won yesterday's market battle.  Obviously, we finished lower so I guess that would be the determining factor to say the bears won this battle.  But it sure felt like at least a minor victory for the bulls in that heavy early losses were trimmed considerably by the close.  And the more aggressive NASDAQ nearly turned green by the close despite an intraday loss that approached 100 points, or approximately 1.25%.  It's noteworthy that the selling began on our major indices beneath key price Read More 

Trading Places with Tom Bowley

The NASDAQ Is Showing Little Signs of Topping

by Tom Bowley

Market Recap for Friday, March 1, 2019 U.S. equities rallied strongly at the open on Friday, then gave back most, if not all, of those gains by late morning, and finally rallied once again in the afternoon.  While intraday volatility was high and different, the end result was what we've grown accustomed to in 2019 - a higher close.  Leadership came from small cap stocks as the Russell 2000 gained 0.89%.  Overhead price resistance from the November and December reaction price highs looms as a major obstacle: The one major difference between now and those Read More 

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