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

Finding Stocks To Achieve Your Goals

by Tom Bowley

Market Recap for Tuesday, February 12, 2019 Another government shutdown was averted and the U.S. stock market reacted quite favorably, as you might expect, with all of our major indices surging higher.  Our major indices had quite a day: Dow Jones:  +1.49% S&P 500:  +1.29% NASDAQ:  +1.46% Russell 2000:  +1.27% Materials (XLB, +2.24%) led all sectors, buoyed at least in part by a decline in the UUP (dollar proxy) for the first time in 9 days.  Our aggressive sectors mostly led the way higher, though, as there was a "risk on" theme that permeated Read More 

Trading Places with Tom Bowley

Time To Place Your Spring Hotel Reservation?

by Tom Bowley

Market Recap for Monday, February 11, 2019 Industrials (XLI, +0.53%), energy (XLE, +0.48%) and financials (XLF, +0.31%) were Monday's leaders as bifurcated action was once again present.  The clear index leader was the small cap Russell 2000 index (+0.84%) and that's become a theme in 2019 as discussed more in the Current Outlook section below.  The other major indices hugged the flat line with the Dow Jones (-0.21%) the sole index to finish in negative territory. I think someone must have read my Monday blog where I indicated that we needed more strength in Read More 

Trading Places with Tom Bowley

Bank Of America Looks Like A Winner

by Tom Bowley

Market Recap for Friday, February 8, 2019 Friday was a solid day for the bulls.  It wasn't because we saw large gains, because we didn't.  In fact, it was bifurcated action where the S&P 500, NASDAQ and Russell 2000 barely closed higher with gains of 0.07%, 0.14% and 0.05%, respectively.  The Dow Jones failed to break into positive territory, instead dropping 0.25%.  But the bullishness came from three key developments: (1) First, the reversal occurred near very important short-term support on the S&P 500.  In other words, there were buyers as Read More 

Trading Places with Tom Bowley

Negative Divergences Stymie Advance

by Tom Bowley

Market Recap for Thursday, February 7, 2019 The bears have been waiting for a day like yesterday, which featured a bit of impulsive selling and an accelerating Volatility Index ($VIX).  Unfortunately, the bulls may have already inflicted too much damage upon the bears for them to recover fully.  I view this nothing more than an overbought pullback for now.  I have a short-term "line in the sand" for the S&P 500.  Until that is lost, I'm viewing this as normal profit taking. All of our major indices declined, led by the NASDAQ's 1.18% drop.  Energy Read More 

Trading Places with Tom Bowley

Restaurants Remain A Fan Favorite

by Tom Bowley

Market Recap for Wednesday, February 6, 2019 All of our major indices closed lower on Wednesday and we haven't seen that very often in 2019.  The losses were minimal and traders continued to have an appetite for the riskier sectors, so it certainly wasn't a huge win for the bears.  But down is down and a downtrend cannot begin without a start.  I wouldn't worry too much from a bullish perspective so long as price action remains above the rising 20 day EMA.  If we move below, then I'd at least become more cautious: The rally off the December Read More 

Trading Places with Tom Bowley

Evaluating Energy And Renewable Energy

by Tom Bowley

Market Recap for Tuesday, February 5, 2019 Tuesday was Groundhog Day for those that have seen the movie starring Bill Murray.  It was a repeat of what we've seen throughout earnings season.  We heard a somewhat disappointing outlook from a market leader, in this case Alphabet (GOOGL, +0.92%), several companies lowering their forecasts for FY19, and yet the U.S. stock market was incredibly resilient, gaining across all of our major indices.  Leadership once again came in the form of the NASDAQ, which rose 0.74%.  The Dow Jones, S&P 500 and Russell 2000 all Read More 

Trading Places with Tom Bowley

Looking At The Dollar And Defense

by Tom Bowley

Market Recap for Monday, February 4, 2019 Technology (XLK, +1.60%) led another broad-based rally on Wall Street Monday as all of our major indices closed higher.  There was particularly strong action on the aggressive NASDAQ and Russell 2000 as they gained 1.15% and 1.03%, respectively.  9 0f 11 sectors finished higher with only healthcare (XLV, -0.29%) and materials (XLB, -0.17%) failing to participate. Computer hardware ($DJUSCR, +2.60%) rallied on the back of Apple, Inc. (AAPL, +2.84%), which continued its post-earnings surge.  Roku (ROKU, +4.91%) and Mercury Systems Read More 

Trading Places with Tom Bowley

Amazon Slammed But Fails To Trigger Panicked Selling

by Tom Bowley

Market Recap for Friday, February 1, 2019 I'm sure I wasn't the only one thinking that the market was doomed on Friday after Amazon.com (AMZN, -5.38%) disappointed traders with its outlook during Thursday's after hours trading.  After all, AMZN is a Wall Street darling and if they're seeing weakness ahead, so too should many others.  But U.S. indices showed resiliency and grit more associated with a bull market than a bear market.  Three of our four key indices ended the day higher as the Dow Jones, S&P 500 and Russell 2000 posted gains of +0.26%, +0.09%, and +0.18% Read More 

Trading Places with Tom Bowley

Bond Market Issues Major Warning

by Tom Bowley

Market Recap for Thursday, January 31, 2019 Wall Street surged again on Thursday, buoyed by additional strong earnings reports and surprisingly strong forecasts by a couple of influential names.  Facebook (FB, +10.82%) and General Electric (GE, +11.65%) were two of the leaders on the S&P 500.  It's somewhat ironic as both had been blamed for dismal performance in 2018.  On Thursday, however, all was forgiven and forgotten as these two helped the S&P 500 and NASDAQ to post 0.86% and 1.37% gains, respectively.  The Russell 2000 chipped in 0.84%.  Only Read More 

Trading Places with Tom Bowley

Consumer Stocks Are Painting A Bullish Picture

by Tom Bowley

Market Recap for Wednesday, January 30, 2019 Wall Street had much to digest yesterday.  There was fresh jobs data as the January ADP employment report was released.  The news was much better than anticipated.  There was the Apple (AAPL) earnings report from Tuesday evening.  While the numbers reported were mostly in-line with AAPL's early January warning, there appeared to be a collective sigh of relief that AAPL didn't drop another bomb.  (AAPL did indicate next quarter's revenue was likely to be in the lower end of the prior range provided.)  AAPL Read More 

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