Trading Places with Tom Bowley

Buying Is Easy, When Should I Sell? Part 1

by Tom Bowley

Trading successfully certainly requires a ton of patience and discipline.  Emotions run high when it comes to your money and the prospects of losing it.  Panicked selling is the easiest kind because you simply can't take the pain any longer.  The best way to rid yourself of the pain is to let go of the culprits, right?  Well, there are times when selling from an emotional state can be a good idea, but far too often it kills your trading results.  If your stop is lost intraday and the volume is high, a big decision has to be made.  A breakdown on big Read More 

Trading Places with Tom Bowley

Can You Time The Stock Market?

by Tom Bowley

Well, I suppose it depends on your view and what you believe in.  For me, there's no question about it.  The stock market can be timed as history repeats itself over and over and over again.  The stock market timing that I'm talking about, though, isn't concerned about fundamental or technical analysis.  I'm not talking about jumping in and out based on price action, moving averages, etc.  Instead I'm referring to timing based solely on the calendar.  Yep, you heard me right - the calendar! How could the calendar hold clues for us?  After all Read More 

Trading Places with Tom Bowley

Flying High With Aerospace ($DJUSAS) and United Technologies (UTX)

by Tom Bowley

The aerospace industry ($DJUSAS) is a component of the industrial sector (XLI).  Industrials have been a key driver of the S&P 500 since the turn of the century.  There's a clear relative uptrend channel in play that was broken temporarily in 2009 as the 2007-2009 bear market came to an end.  Except for that slight blemish, industrials have been a "go to" sector for the bulls for the past 15 years.  Check this out: Since that 2009 bottom, industrials have moved straight up with few pullbacks and their relative strength has remained in its Read More 

Trading Places with Tom Bowley

Dissecting The Technology Sector

by Tom Bowley

Technology has outperformed every other sector over the past year - except for healthcare.  So it begs the question - is there any more gas left in the technology tank?  We've seen money rotate to various sectors throughout the past year.  Most of the industry groups within technology remain bullish on their longer-term charts, either having broken out recently out of bullish technical patterns or potentially setting up to do so.  Let's focus first on the former category. Consumer electronics ($DJUSCE) and electrical components & equipment ($DJUSEC) are Read More 

Trading Places with Tom Bowley

Many "Under The Surface" Technical Signals Strong

by Tom Bowley

I'm not ready to give up on this bull market.  While anything is certainly possible, traders are not positioning themselves for a steep market decline.  Perhaps we'll see a bit of selling, maybe even a correction, but the longer-term bull market still remains intact in my opinion.  A key ratio to watch is how the consumer discretionary (XLY) sector stacks up against its consumer staples (XLP) counterpart.  A rising ratio of the XLY:XLP signals a "risk on" market environment, conducive to higher equity prices.  A falling ratio suggests "risk off" and fresh market Read More 

Trading Places with Tom Bowley

Home Construction ($DJUSHB) Tests Triangle Support

by Tom Bowley

March has been a little rough for the stock market thus far, but there are a few areas where the pullback has represented welcome relief.  Home construction ($DJUSHB) is one of those areas.  Cyclical stocks, of which home construction is a part, seemed to take a much needed breather in 2014, but they have come roaring back in 2015 and are clearly the choice in terms of consumer stocks.  First, let me make the case for cyclicals (consumer discretionary - XLY) vs. their more defensive counterpart - consumer staples (XLP).  The charts don't lie and here's a visual Read More 

Trading Places with Tom Bowley

Exploration and Production Index ($DJUSOS) Bottoming?

by Tom Bowley

While most of the U.S. stock market enjoys quite a bull market dating back to March 2009, that's not the case currently for exploration and production stocks ($DJUSOS) - at least not in the near- to intermediate-term.  A topping head & shoulders pattern confirmed in late November as neckline support was lost on very heavy volume.  In February we saw temporary relief as the neckline breakdown was back tested (red arrow below), but ultimately failed.  So the obvious question at this point is "has the bottom formed"?  I don't believe it has, but the index is Read More 

Trading Places with Tom Bowley

Welcome to Trading Places!

by Tom Bowley

Hello!  I'm Tom.  Welcome to my new blog - "Trading Places with Tom Bowley." First off, I'd like to thank you for stopping by.  I'm thrilled to be writing blogs and hosting webinars exclusively at StockCharts.com while doing so among the finest technical analysts on the planet.  This ground-breaking article will provide you with my background and my approach to stock trading.  I think you'll see that I really strive to keep trading simple - the KISS theory if you will.  Before I discuss my trading style and strategy, let me give you my Read More 

Trading Places with Tom Bowley

Looking Good, Feeling Good! Tom Bowley Joins StockCharts.com

by Chip Anderson

Today I'm thrilled to announce the addition of another amazing technical commentator to StockCharts.com - Tom Bowley!   Many of you know Tom from his work at InvestEd Central and EarningsBeats.com.  In addition, Tom has been a regular contributor to our free ChartWatchers newsletter.  Now that he's officially joined the StockCharts team, Tom will be much more visible on our website.  He's getting his own blog - This Blog! - called "Trading Places with Tom Bowley."  (It's a double pun - first off it's a reference to the Eddie Murphy movie and, second, it will Read More