Trading Places with Tom Bowley

S&P 500 Led Lower By Defensive Stocks

by Tom Bowley

Market Recap for Thursday, September 29, 2016 Healthcare stocks (XLV, -1.76%), utilities (XLU, -1.50%) and financials (XLF, -1.40%) led a broad-based decline on Thursday with energy (XLE, -0.17%) the only sector to escape relatively unscathed.  In particular, biotechnology and pharmaceutical shares were weak with the latter featured in the Sector/Industry Watch section below.  Biotechnology ($DJUSBT) was beginning to show life as it recently pushed through 2016 price resistance near 1700.  It has now given back that level, however, as the near-term grows more cautious Read More 

Trading Places with Tom Bowley

Energy Enjoys Biggest Day of 2016; Equities Surge

by Tom Bowley

Market Recap for Wednesday, September 28, 2016 Energy shares (XLE, +4.32%) soared on Wednesday to their largest single day gain of the year as crude oil ($WTIC) gained more than 5% on the back of OPEC's agreement to curb oil production.  This was the first such agreement since 2008 and kept oil bears on the defensive throughout yesterday's session.  Crude oil remains in a bullish reverse head & shoulders pattern as we await either a breakout above $52 per barrel or a breakdown beneath $40 per barrel to confirm or negate the pattern.  Certainly, a curb of production Read More 

Trading Places with Tom Bowley

Technology And Consumer Discreitionary Lead Stock Rally

by Tom Bowley

Market Recap First, I'd like to thank everyone who attended ChartCon 2016, making it a HUGE success!  It was great interacting with folks from around the globe via Guidebook and I can't wait to have the opportunity to do it again!  I will be back on schedule with my blog starting today and my webinars will be back up and running on Monday. When I left last week, the S&P 500 was at 2163 and it fell a cumulative total of 4 points while I was gone.  The good news is that the rotation that's taken place has been solid technically.  Industrials (XLI), consumer Read More 

Trading Places with Tom Bowley

This Relative Ratio Suggests U.S. Weakness Ahead

by Tom Bowley

Special Note I continue to move into ChartCon 2016 mode, so bear with me as all of us here at StockCharts.com prepare to descend upon California.  My travel day is tomorrow so I will not likely post at all.  Of course, there's always the possibility of a last minute airport post!  :-) Please check out the ChartCon 2016 information page HERE.  The lineup of presentations is designed to provide you with information to improve your investing and/or trading success, depending on your preference.  Hope to see you there! Read More 

Trading Places with Tom Bowley

U.S. Equities Stumble on Friday As Banks Test 50 Day

by Tom Bowley

Special Note My blog articles will be brief the next two days as I prepare for ChartCon 2016.  I will be traveling on Wednesday so there will be no article that day.  While in California, my blog schedule will not be set so I'll simply post when I have time and am able.  ChartCon 2016 begins this Friday (!!!) and you still have time to register for this awesome event.  CLICK HERE for more information! Stock prices fell on Friday, but there was were no price support violations despite the weakness.  The S&P 500 has been trading in a Read More 

Trading Places with Tom Bowley

Technology Shares Lead Strong U.S. Rally

by Tom Bowley

Market Recap for Thursday, September 15, 2016 There was plenty of good news to go around on Thursday, which was nice because the bulls have been beaten up a little bit of late.  All of our major indices finished with solid gains and all nine sectors advanced.  Technology (XLK, +1.64%) was the leading sector once again, led in large part by computer hardware's ($DJUSCR) 3.20% spike.  Apple (AAPL) has been very strong over the past four trading sessions, rising from 102.50 to slightly above 115.50 and that's lifted the entire computer hardware group.  Check out the Read More 

Trading Places with Tom Bowley

Let's Get Ready To Rum.....Errrr, Gamble!!!

by Tom Bowley

Market Recap for Wednesday, September 14, 2016 Market and sector performance was bifurcated on Wednesday with the NASDAQ performing much better on a relative basis, gaining 0.36% on the session.  The Dow Jones, S&P 500 and Russell 2000 all finished with fractional losses.  Leading the NASDAQ were technology stocks (XLK, +0.47%) which closed higher mostly by virtue of a very significant, high volume breakout by its leader, Apple (AAPL).  After recently printing a bullish engulfing candle at its 50 day SMA and gap support, AAPL has surged with yesterday's strength Read More 

Trading Places with Tom Bowley

Back Down We Go...Where Will It End?

by Tom Bowley

Market Recap for September 13, 2016 Honestly, I'm not at all surprised at the failure on Tuesday for the bulls to capitalize on Monday's rally.  We had a lot of room to key short-term price resistance after Friday's free fall in our major indices.  The S&P 500 had price resistance near 2160 and the NASDAQ's price and gap resistance fell from just beneath 5200 (price resistance) to 5220 (gap resistance).  By Monday's close, we had reached both but had not broken above on the close.  That left us vulnerable to renewed selling and that's exactly what we saw Read More 

Trading Places with Tom Bowley

U.S. Stocks Rebound Strongly But......

by Tom Bowley

Market Recap for Monday, September 12, 2016 There were two problems with the rally on Monday.  First, there was the issue of failure at price and gap resistance as I will discuss in the Current Outlook section below.  Second was the issue of leadership on the advance.  Don't get me wrong, the bounce was certainly better than the alternative of another huge down day.  But let's be clear that the rally doesn't mean Friday's selloff wasn't the start of something bigger.  Today's futures are much lower to underscore this point.  Volatility ($VIX) is definitely on Read More 

Trading Places with Tom Bowley

Heavy Volume Selling Turns Tables; Expect More Selling

by Tom Bowley

Special Note We're less than two weeks away from ChartCon 2016, the biggest online financial conference of the year!!!  Be sure to reserve your spot today!  CLICK HERE to learn more about the event, including the speakers and agenda.  The theme this year is "building a successful technical trading system".  Given the increased volatility of late, there is not a better time to learn what technical experts do to protect their portfolios during such uncertain times.  Hope to "see" you there! Market Recap for Friday, September 9, 2016 Read More 

Trading Places with Tom Bowley

Energy Soaring To Stabilize Weakness Elsewhere

by Tom Bowley

Market Recap for Thursday, September 8, 2016 If you haven't noticed, maybe you should.  Energy (XLE, +1.87%) is in a bull market, posting 5.17% gains in just the last week!  That's not a bad year.  It's not like U.S. equities have been soaring either.  In fact, over the past week, seven of the nine sectors have produced results between +0.5% and -0.5%.  Energy is moving in a flat market.  The XLE gain yesterday resulted in another price breakout as you can see below: It also broke out on a relative basis vs. the Read More 

Trading Places with Tom Bowley

Consumer Staples Next To Bounce Off Support? A Look At Coca Cola

by Tom Bowley

Market Recap for Wednesday, September 7, 2016 Consumer staples (XLP, -0.87%) had a rough Wednesday while most other sectors finished just above or below the breakeven level for the day.  Of the 10 industry groups that make up consumer staples, only drug retailers ($DJUSRD) finished higher - fractionally so.  Meanwhile, food retailers & wholesalers ($DJUSFD) tumbled 2.70% and personal products ($DJUSCM) and food products ($DJUSFP) fell 1.65% and 1.36%, respectively.  The loss in soft drinks ($DJUSSD) was a much more palatable 0.53%, but Coca Cola (KO) has been struggling Read More 

Trading Places with Tom Bowley

Energy Rebounds Strongly, Led By Red Hot Pipelines

by Tom Bowley

Market Recap for Tuesday, September 6, 2016 Energy (XLE, +1.51%) was the clear leader on Tuesday, resuming their leadership role in 2016.  Utilities (XLU, +1.09%) also continued its recent climb off price support near 49.00, actually closing above its declining 20 day EMA for the first time in over a month.  That has coincided with a sudden break of trendline support on the 10 year treasury yield ($TNX).  You can check out the breakout on the XLU, coupled with the breakdown on the TNX in the Current Outlook section below.  Energy was the primary benefactor on Read More 

Trading Places with Tom Bowley

Treasury Market Brushes Off Disappointing Jobs, Utilities Lead

by Tom Bowley

Special Webinar Scheduling Note Because of the holiday-shortened trading week, please be sure to check out the webinar calendar on the home page.  Monday's Bowley Briefing and Trading Places LIVE were cancelled due to the Labor Day holiday here in the U.S., but webinars are a "go" for today.  Hope to see you there! Market Recap for Friday, September 2, 2016 The nonfarm payrolls were released on Friday and many might argue it was the best report possible.  There was job growth, but not as much as expected.  So some traders would argue that the Read More 

Trading Places with Tom Bowley

Support Holds With All Eyes On Disappointing Jobs This Morning

by Tom Bowley

Market Recap for Thursday, September 1, 2016 Key support levels were tested - and held once again - at 2160 and 5190 on the S&P 500 and the NASDAQ, respectively.  We're not going any higher, but we're not breaking down either.  The S&P 500 has traded in a very narrow 30 point range for the past 6-7 weeks with both the bulls and bears hoping that today's jobs report will finally put an end to the recent boring consolidation.  Consumer discretionary (XLY, +0.20%) was one of five sectors rising on Thursday, but the consolidation has been quite evident there as well Read More 

Trading Places with Tom Bowley

Energy And Materials Suffering From Rising Dollar

by Tom Bowley

Market Recap for Wednesday, August 31, 2016 Higher treasury yields in August are impacting more than just a few interest-sensitive equity groups.  It's also been driving the U.S. dollar higher.  A higher dollar can also affect equities in various ways.  Yesterday was a prime example as energy (XLE, -1.58%) and basic materials (XLB, -1.00%) both fell as the dollar ($USD) has capped off one of its strongest one week rallies of 2016.  Check out the dollar's advance and subsequent drop in energy and materials: While both the XLE and XLB have moved in Read More