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

Will Earnings Sustain The Current Rally? Probably Not

by Tom Bowley

Market Recap for Friday, January 11, 2019 Healthcare (XLV, +0.33%) and consumer staples (XLP, +0.29%) paced a bifurcated market on Friday as the Russell 2000 eked out a 2 point gain.  Despite rallying most of the session after a poor start, the Dow Jones, S&P 500 and NASDAQ fell short of moving into positive territory and finished with minor losses of 0.02%, 0.01%, and 0.21%, respectively.  The Dow Jones ended with half of its components higher, half lower.  Among sectors, five were higher, six were lower.  Clearly, it was one of those kind of days. Read More 

Trading Places with Tom Bowley

Correlation Suggests That We Monitor Treasury Yields Closely

by Tom Bowley

Market Recap for Thursday, January 10, 2019 There was both good and bad action on Thursday.  Yes, the bulls should be excited as a short-term price and trendline breakdown did not result in panic or a Volatility Index ($VIX) that surged.  Also, all of our major indices remained above their ascending 20 day EMAs.  So long as that continues, a tradable uptrend remains in play.  By the close, the Dow Jones, S&P 500, NASDAQ and Russell 2000 all finished higher, gaining 0.51%, 0.45%, 0.46%, and 0.42%, respectively.  Considering that each started the day 0.75%-1.00% Read More 

Trading Places with Tom Bowley

Crude Oil Surges, Energy Paces Wall Street Advance; Negative Divergences Loom

by Tom Bowley

Market Recap for Wednesday, January 9, 2019 Crude oil ($WTIC, +5.18%) continued rolling higher on Wednesday, buoyed at least in part from its positive divergence.  Recently, I discussed the likelihood that crude oil prices would move back into the $50-$54 per barrel range and you can see from the chart that's where we are now: Positive divergences typically result in 50 period SMA tests and/or PPO centerline tests.  The WTIC is now close to its 50 day SMA and rapidly approaching its PPO centerline.  Many times, positive divergences mark long-term bottoms and I Read More 

Trading Places with Tom Bowley

Bear Market Rally Likely Nearing Its End

by Tom Bowley

Market Recap for Tuesday, January 8, 2019 It was another broad-based rally on Wall Street with 10 of 11 sectors finishing higher.  Small caps powered ahead 1.53% to lead the action, but the Dow Jones, S&P 500 and NASDAQ gained 1.09%, 0.97% and 1.08%, respectively, to join the party.  After bottoming at 2346, the S&P 500 has recovered 228 points, or 9.72% - similar to what we've seen in the past after "correction to bear market" breakdowns.  There's still more upside potential in this rally before the bulls will be put to the test, but a reversal could occur at any Read More 

Trading Places with Tom Bowley

Consumer Discretionary Makes Relative Breakout, Poised To Lead In 2019

by Tom Bowley

Market Recap for Monday, January 7, 2019 Crude oil prices ($WTIC, +1.17%) rallied on Monday, helping energy (XLE, +1.49%) continue its recent surge, but the day clearly belonged to consumer discretionary stocks (XLY, +2.26%) as retail (XRT, +3.10%) and home construction ($DJUSHB, +2.43%) were among the session's best performers.  It wasn't an across-the-board advance like we've seen in recent days as two defensive sectors, utilities (XLU, -0.68%) and consumer staples (XLP, -0.14%), failed to participate.  Also, financials (XLF, +0.12%) struggled on a relative basis as banks Read More 

Trading Places with Tom Bowley

One Industry Group Has Quietly Been "Building" Relative Strength

by Tom Bowley

Market Recap for Friday, January 4, 2019 Friday was a HUGE day for the bulls as nonfarm payrolls came in well ahead of expectations (312,000 vs 180,000), which in no way reflects what the stock market has been saying since Q4 2018 began - that we were heading towards slowing economic growth.  That simply was not the case with this jobs report.  To add more fuel to the fire, Fed Chair Jerome Powell (who served as the lead role in How The Grinch Stole Christmas), backed off earlier statements and exercised patience.  Powell now is indicating that he's understanding the Read More 

Trading Places with Tom Bowley

Apple's (AAPL) Guidance Wasn't As Shocking As Facebook's (FB)

by Tom Bowley

Market Recap for Thursday, January 3, 2019 Just about every market-related discussion since Wednesday's close has centered around Apple (AAPL, -9.96%).and for good reason.  AAPL is a U.S. stock market icon.  Some might argue it is THE icon.  When they lowered their revenue guidance substantially on Wednesday evening, it marked the first time in 17 years that AAPL lowered its revenue guidance.  They are the poster child of conservative guidance and traders know that AAPL will beat estimates.  It's simply how the market goes 'round.  I've discussed Read More 

Trading Places with Tom Bowley

Just Two Days After The Ball Drops, The Bomb Drops

by Tom Bowley

Market Recap for Wednesday, January 2, 2019 On a day filled with hope, as traders rang in the new year on Wall Street, the biggest news came after the market closed as Apple (AAPL) warned regarding its upcoming quarter.  During the trading day, we saw resiliency for one of the few times over the past five weeks.  U.S. markets opened quite weak yesterday, but managed to attract buyers throughout the session as all of our major indices finished in positive territory, led by the more aggressive Russell 2000 and NASDAQ, which gained 0.54% and 0.46%, respectively.  In terms of Read More 

Trading Places with Tom Bowley

2019 Will Be A Cyclical Bear Market Within A Secular Bull Market

by Tom Bowley

Market Recap for Monday, December 31, 2018 December 2018 was a rough month to end a very difficult Q4.  It was very unusual in terms of historical perspective as we're accustomed to seeing mostly solid action in early December followed by a Santa Claus rally into year end.  Well, Santa finally did arrive on Wall Street, but many would argue it was a bit too late.  U.S. stocks opened last week in horrible fashion, posting the biggest loss ever on Christmas Eve.  But by week's end, we had seen rebounds across the board.  At Monday's close, the Dow Jones had rallied Read More 

Trading Places with Tom Bowley

Utilities Is The Lone Bullish Sector As We Move Into 2019

by Tom Bowley

Market Recap for Friday, December 28, 2018 Let's start with the bright spots from Friday's market action.  The more aggressive NASDAQ and Russell 2000 ended the session in positive territory, gaining 0.08% and 0.46%, respectively.  They both closed higher for the third consecutive day after a drubbing throughout December.  As a result, the month-to-date losses have shrunk, but they haven't changed the 2019 outlook much.  Most market participants consider a 20% drop to be a "bear market".  The small cap Russell 2000 nearly dropped 20% in December alone, prior to Read More 

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