Trading Places with Tom Bowley

Biotechs And Semiconductors Lead The NASDAQ Charge

by Tom Bowley

Market Recap for Wednesday, August 30, 2017 The U.S. stock market benefited from a lot of the new and a little of the old on Wednesday as the Dow Jones U.S. Biotechnology Index ($DJUSBT) and the Dow Jones U.S. Semiconductors Index ($DJUSSC) posted solid gains to help lead the NASDAQ and NASDAQ 100 yesterday.  The DJUSBT has risen approximately 7% in the past 8 trading sessions and the 2.29% gain yesterday cleared prior price resistance.  This industry remains one of the very best technically as you can see: There was a short-term issue to resolve - slowing momentum Read More 

Trading Places with Tom Bowley

Are We Trending Or Trendless? Watch Small Caps For Clues

by Tom Bowley

Market Recap for Tuesday, August 29, 2017 At Tuesday's open, North Korea and its missile test were the talk of Wall Street. By the close, traders ignored the rising tensions and instead focused on the recent better-than-expected quarterly earnings and the low interest rate environment.  U.S. equities rose on Tuesday with the S&P 500 closing higher for the third consecutive session.  Before you go rushing to your internet broker to push the buy button, however, realize the gains have been 4 points, 1 point, and 2 points, respectively, over the past three trading days Read More 

Trading Places with Tom Bowley

Biotechs Surge To Lead The NASDAQ Higher

by Tom Bowley

Market Recap for Monday, August 28, 2017 The U.S. market was able to rally a bit in afternoon trading on Monday and most of our major indices finished in positive territory - the Dow Jones was the lone exception as that index of 30 conglomerates fell 5 points.  Sectors were split with healthcare (XLV, +0.53%) the only sector to post decent-sized gains.  We did see pockets of strength, however.  Home improvement retailers ($DJUSHI) managed to gain close to 1% as the market was anticipating a pick up in demand for stocks in that industry as a result of the devastation caused Read More 

Trading Places with Tom Bowley

Down Channels Are Firmly Established As We Approach September

by Tom Bowley

Market Recap for Friday, August 25, 2017 Selling in the final hour on Friday contributed to bifurcated action where the NASDAQ tumbled into negative territory while the Dow Jones, S&P 500 and Russell 2000 all managed to hang onto meager gains.  Our major indices remain in a downtrend as can be seen on the NASDAQ 100 here: The late selling on Friday simply adds to the short-term bearishness in the market.  Technology (XLK, -0.02%) was the only sector to finish with a loss on Friday and the late day selling in semiconductors ($DJUSSC) and internet ($DJUSNS) was the primary Read More 

Trading Places with Tom Bowley

Food And Broadline Retailers Crushed By Amazon.....Again

by Tom Bowley

Reminder You can subscribe to my blog by scrolling to the bottom of the article, typing in your email address and clicking the green "Notify Me!" button.  Once subscribed, my articles will be sent directly to your email as soon as Trading Places articles are published.  Thanks! Market Recap for Thursday, August 24, 2017 The 800 lb. gorilla has spoken.  Amazon.com (AMZN) announced that Whole Foods Market (WFM) would be cutting their prices and that its Prime members would see discounts on WFM purchases.  That was enough to send competitors reeling.  Consumer Read More 

Trading Places with Tom Bowley

Oil Exploration & Production Stocks Rebound But Key Resistance Approaching

by Tom Bowley

Market Recap for Wednesday, August 23, 2017 Industrials (XLI, -0.94%) and consumer discretionary (XLY, -0.85%) led a move lower in U.S. stocks on Wednesday as we approach the gathering of global central bankers in Jackson Hole over the next few days.  Energy (XLE, +0.43%) managed to push higher as money rotated into the beleaguered sector as exploration & production stocks ($DJUSOS) bounced.  Unfortunately, the DJUSOS looks awful technically with overhead resistance another 2% above current price.  So perhaps we'll get a bit more of a bounce, check it out: Read More 

Trading Places with Tom Bowley

Combine Technicals And Seasonality And You Get? A Buy Signal On ULTA

by Tom Bowley

Market Recap for Tuesday, August 22, 2017 All nine sectors advanced on Tuesday to lead a broad-based advance on Wall Street.  The NASDAQ and Russell 2000 were the top performing indices, but the S&P 500 also saw a gain of nearly 1% and the Dow Jones bounced nearly 200 points after successfully testing 21650 price support.  But let me caution that we are now range bound and the S&P 500 has seen 5 crosses of its 20 day EMA in the month of August.  Technology (XLK, +1.49%) has been the leader in 2017 and was the leader once again on Tuesday Read More 

Trading Places with Tom Bowley

Technology Still Looks Most Vulnerable While Healthcare Remains Strong

by Tom Bowley

Market Recap for Monday, August 21, 2017 Healthcare (XLV, +0.45%) led the market's advance on Monday's total solar eclipse day as money rotated into more defensive areas of the market.  Utilities (XLU, +0.37%) and consumer staples (XLP, +0.36%) also benefited and this move towards safety could be seen in our major indices as well.  The Dow Jones and S&P 500 were able to post minor gains while the more aggressive NASDAQ and Russell 2000 ended in negative territory. While the XLV has fallen beneath key moving averages on its daily chart, stepping back to the bigger Read More 

Trading Places with Tom Bowley

Gold Tops 1300 And Reverses; Equities Close Out Rough Week

by Tom Bowley

Market Recap for Friday, August 21, 2017 Late day selling killed the market's earlier attempt to rebound from Thursday's heavy losses.  A market that finishes multiple days in a row weak is a market that requires a renewed buying effort.  While we could see that at any time, let's keep in mind that it's the 21st day of August and this is the time of all calendar months that we need to be careful. Despite the selling, we did manage to see four sectors finish in the green on Friday, including utilities (XLU, +0.59%) and energy (XLE, +0.50%).  On the other end of the Read More 

Trading Places with Tom Bowley

Fear Escalates; Gold Nears Major Breakout

by Tom Bowley

Market Recap for Thursday, August 17, 2017 For now it's just a short-term issue, but money is rotating to defensive areas and fear is rising.  The Volatility Index ($VIX) jumped over 32% yesterday to close at its 5th highest level of 2017.  The highest close of 16.04 is just 3% away so clearly nervousness is becoming an issue and is driving these much larger daily selloffs.  The NASDAQ 100 lost more than 100 points on Thursday, its sixth such decline in the past three months.  Prior to May, the last time the NASDAQ 100 lost 100 points was on September 9th, 2016 Read More 

Trading Places with Tom Bowley

NASDAQ 100 Again Gets Turned Back At Key Resistance

by Tom Bowley

Market Recap for Wednesday, August 16, 2017 All of our major indices finished higher on Wednesday and seven of our nine sectors finished higher as well.  The primary laggard on the session?  Energy (XLE, -0.96%).  Go figure.  A significant reason for the XLE's renewed relative weakness has been the reversal in crude oil prices ($WTIC).  Since opening the month above $50 per barrel, black gold has fallen throughout August, including four of the last five trading sessions - and that recent weakness has broken the short-term uptrend that was established during the Read More 

Trading Places with Tom Bowley

Strong Retail Sales Leads To.....Awful Performance By Retailers. Huh?

by Tom Bowley

Market Recap for Tuesday, August 15, 2017 July retail sales doubled expectations (+0.6% actual vs +0.3% consensus estimate) and we saw the kind of reaction in the bond market that we'd expect with treasury prices tumbling and treasury yields spiking.  But what happened to retail stocks?  They fell out of bed with the S&P Retail ETF (XRT) dropping 2.7% and closing at its lowest level since the beginning of 2016.  Can you imagine the bloodbath if retail sales had missed estimates? So why the poor effort from retailers with solid fundamental news in play? Read More 

Trading Places with Tom Bowley

Monday Was A Bullish Kind Of Rebound

by Tom Bowley

Market Recap for Monday, August 14, 2017 When the stock market goes up, I want to see money rotate towards aggressive areas and we definitely saw that on Monday.  Technology (XLK, +1.59%), financials (XLF, +1.37%) and industrials (XLI, +1.05%) were the three big winners on the session and they're all considered aggressive sectors.  I also like to see wide participation and eight of the nine sectors advanced.  The final piece to the bullish puzzle is heavy volume.  That was clearly lacking yesterday as NASDAQ volume was just 1.7 billion shares, well below its 50 Read More 

Trading Places with Tom Bowley

Evaluating The Technical Damage Inflicted On The S&P 500

by Tom Bowley

Market Recap for Friday, August 11, 2017 Here's a fact:  The benchmark S&P 500, along with all the major U.S. indices, had a rough week last week.  Traders aren't used to weekly declines of more than 1%, yet that's exactly what we got last week.  The S&P 500 lost 1.43%, its second worst week since the November 2016 uptrend began.  Based on that alone, it's difficult to grow overly bearish as buyers have seemed to step up the past ten months no matter what the crisis.  This time could be different, however, as we're faced with seasonal headwinds in August Read More 

Trading Places with Tom Bowley

Key Support Levels Lost, Futures Weak; How Low Do We Go?

by Tom Bowley

Market Recap for Thursday, August 10, 2017 Technology (XLK, -1.97%) and financials (XLF, -1.78) led a steep selloff in equities on Thursday.  It wasn't the worst day of the year for the NASDAQ, but it was pretty close.  That aggressive index lost both its 20 day EMA and 50 day SMA yesterday and futures are lower again this morning.  Prepare for more weakness.  We'll get a temporary bounce soon, but it's not likely to last as another significant leg lower will probably follow. So where do we go from here, now that key moving averages have been lost? Read More 

Trading Places with Tom Bowley

Stocks Recover After Early Drop; Futures Weak Again

by Tom Bowley

Market Recap for Wednesday, August 9, 2017 U.S. equities were under early fire on Wednesday, but there was a steady recovery throughout the balance of the day with little technical damage done by session end.  The Russell 2000 was one exception, however, as that aggressive small cap index closed beneath 1400 for the first time in the past 6-7 weeks.  That weak performance followed a 20 day EMA test from underneath with that moving average now threatening a death cross beneath the 50 day SMA.  Check it out: The red circle highlights more-than-normal bearishness Read More 

Trading Places with Tom Bowley

Brace Yourselves, The Summertime Doldrums Have Arrived

by Tom Bowley

Reminder If you'd like to receive my blog article each trading day, just as it's published, be sure to scroll down to the bottom of this article, type in your e-mail address and click the "Notify Me" button.  It's FREE and you can unsubscribe at any time.  :-) Market Recap for Tuesday, August 8, 2017 On the surface, it was just a simple day of profit taking.  But I think it will end up being much more than that.  The Dow Jones winning streak finally ended.  Not only had the Dow Jones finished with record high closes for the past nine trading sessions, but it Read More 

Trading Places with Tom Bowley

Leadership Returns To NASDAQ 100; Watch This Key Resistance

by Tom Bowley

Market Recap for Monday, August 7, 2017 There's nothing wrong with the Dow Jones moving to all-time highs for the ninth consecutive trading session.  However, higher prices on the more aggressive NASDAQ and Russell 2000 show traders' appetite for riskier investments and it's that risk element that helps to fuel bull markets.  On Monday, traders returned to the more aggressive NASDAQ 100 ($NDX) stocks.  In fact, the top three stocks in the NDX yesterday (and four of the top five) were semiconductor stocks ($DJUSSC).  The DJUSSC remains very solid on its daily chart, but Read More 

Trading Places with Tom Bowley

Solid Jobs And Treasury Selling Lifts U.S. Equities

by Tom Bowley

Special Note I will be joining John Hopkins, President of EarningsBeats.com, for a special earnings-related webinar that begins at 4:15pm this afternoon, just after the market closes.  I'll be providing several of my favorite stocks from the current parade of earnings so please join me and John later today.  CLICK HERE for more information and to register for this special event. Market Recap for Friday, August 4, 2017 The July nonfarm payrolls report came in much better than expected and the U.S. bond and stock markets reacted about as you would Read More 

Trading Places with Tom Bowley

August Means Road Construction Ahead For Truckers; July Jobs Report On Deck

by Tom Bowley

Market Recap for Thursday, August 3, 2017 The Dow Jones was once again able to eke out a meager 9 point gain to establish yet another record closing high, but other indices were unable to keep up.  The more aggressive Russell 2000 and NASDAQ fell by 0.54% and 0.35%, respectively, and the benchmark S&P 500 also fell 0.22%.  Over the past two weeks, the S&P 500 has traded in a very narrow 1% range established by the high and low on July 27th.  The S&P 500 is basing in sideways consolidation fashion following an uptrend - and that's generally bullish Read More 

Trading Places with Tom Bowley

Consumer Relationship Still Pointing To Higher Prices

by Tom Bowley

Market Recap for Wednesday, August 2, 2017 The action on Wednesday was quite boring once again, despite hundreds of companies reporting their quarterly results.  The Dow Jones jumped another 52 points to a fresh record high - which it's been seeing daily - and it pierced 22000 for the first time in its history, touching 22036 at its intraday high before settling in at 22016 at the close.  The benchmark S&P 500 rose another point to 2477, but one of its biggest technical issues - a weekly negative divergence - hasn't seen any improvement: Read More 

Trading Places with Tom Bowley

It's Make Or Break Time For The Dollar And Gold

by Tom Bowley

Market Recap for Tuesday, August 1, 2017 It was a rather boring day on Wall Street Tuesday, albeit a bullish one, as all of our major indices finished the day higher.  Both the S&P 500 and NASDAQ tight-roped along key support/resistance levels as you can see below: All of the S&P 500's action was safely above gap and price support, while the NASDAQ never could quite get enough buying pressure to clear its suddenly-declining 20 day EMA.  Given the strong futures this morning, both should be comfortably above support as a new trading day begins. Read More 

Trading Places with Tom Bowley

Financials Lead Dow Jones Rally; Costco Rebounds

by Tom Bowley

Market Recap for Monday, July 31, 2017 The Dow Jones set another all-time high on Monday, rising another 60 points in its lone attempt to carry the bull market to new heights.  All of our other major indices fell on Monday despite the renewed strength of financials (XLF, +0.72%).  Home Depot (HD) was the leading component and the only stock in the Dow Jones to gain more than 1%.  HD may struggle to lead the Dow much further, however, as price and volume trends have both turned south.  Check out the latest HD chart: The volume exploded to lose Read More