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

This Software Company Blew Out Earnings In August, Could Be Bottoming Short-Term

by Tom Bowley

Market Recap for Friday, September 28, 2018 Friday saw very choppy action to close out the 3rd quarter.  The good news is that Q3 typically represents the U.S. market's weakest quarter in terms of performance.  However, this year saw significant gains over the summer months as the S&P 500 opened the quarter at 2718 and closed it at 2914, representing a nearly 200 point gain - one of the best Q3s on record.  The NASDAQ opened the quarter at 7510 and gained more than 500 points.  Healthcare (XLV, +14.68%) and industrials (XLI, +10.21%) both gained more than 10% Read More 

Trading Places with Tom Bowley

Apple Nears Breakout, Leads NASDAQ; Small Caps Lag

by Tom Bowley

Market Recap for Thursday, September 27, 2018 Utilities (XLU, +1.03%) rebounded solidly on Thursday after trending lower most of September.  The group appeared to benefit from the failure of the 10 year treasury yield ($TNX) to break out.  3.11% is yield resistance on the TNX from the May 2018 high, which is also a 7 year high.  If you look at the following chart, as the TNX hit that yield resistance and failed to break out, the XLU began to form a bottoming reverse head & shoulders pattern: Communication services (XLC, +0.86%) and technology (XLK, +0.59%) Read More 

Trading Places with Tom Bowley

The Fed Takes A Stand....And It's Not Accommodative

by Tom Bowley

Market Recap for Wednesday, September 26, 2018 The FOMC raised its fed funds rate a quarter point at 2pm EST yesterday as expected, but as usual, it's not what the Fed does, it's what it says.  Perhaps the most significant part of the Fed's prepared remarks was where it changed its wording from the previous meeting to remove "accommodative", referring to its stance on a forward looking basis.  After a knee-jerk reaction higher, the market's "true reaction" surfaced and we saw nearly two hours of selling into Wednesday's close.  The 10 year treasury yield ($TNX), at very Read More 

Trading Places with Tom Bowley

Energy Leads; Exploration & Production Stocks Test Major Resistance

by Tom Bowley

Market Recap for Tuesday, September 25, 2018 Almost.  That's the word that came to mind while watching energy stocks into the close on Tuesday.  Yes, the group is in the midst of a significant short-term rally, but when given the opportunity to clear multi-month price resistance, they came up a bit short.  Energy (XLE, +0.64%) and consumer discretionary (XLY, +0.42%) showed relative strength on a day when U.S. stocks were searching for leadership, but the following chart highlights the technical issues ahead for energy and one of its key industry components: Read More 

Trading Places with Tom Bowley

Steel Quietly Resting, But Looking Solid For Q4 Run

by Tom Bowley

Market Recap for Monday, September 24, 2018 Energy (XLE, +1.46%) had a very strong day on Monday, helping to offset what was otherwise a rather poor day for U.S. equities.  Technology (XLK, +0.50%) was aided by its four key components - computer hardware ($DJUSCR, +1.17%), internet ($DJUSNS, +0.79%), software ($DJUSSW, +0.57%), and semiconductors ($DJUSSC, +0.41%) - to enable the NASDAQ to rally into positive territory in the afternoon session after opening much lower.  The Dow Jones opened lower, but never really saw much buying interest throughout the session as industrials Read More 

Trading Places with Tom Bowley

This NASDAQ Support Zone Is Important And Needs To Hold

by Tom Bowley

Market Recap for Friday, September 21, 2018 Bifurcation was once again apparent on Wall Street to close out last week.  The Dow Jones was able to finish higher and extend its trek into record high territory, while the S&P 500 was essentially flat.  The NASDAQ and Russell 2000, however, were met with sellers and both closed down fairly significantly - 0.51% and 0.46%, respectively. The problem, clearly, was that three aggressive sectors struggled simultaneously.  Consumer discretionary (XLY, -0.44%), technology (XLK, -0.39%) and financials (XLF, -0.39%) led Read More 

Trading Places with Tom Bowley

Can You Correctly Answer This Historical Tendencies Trivia Question? I Doubt It

by Tom Bowley

Market Recap for Thursday, September 20, 2018 Dow Jones, welcome to the party!  It's been eight months since the Dow Jones could say it closed in record all-time high territory, but that's what happened at yesterday's close.  The Dow Jones joined the S&P 500, NASDAQ and Russell 2000, all of which have regularly been producing record high closes.  While the NASDAQ and Russell 2000 both enjoyed gains yesterday of approximately 1%, they have more work to do to get back into record high territory.  I don't believe it'll take too long, however, as we're Read More 

Trading Places with Tom Bowley

Traders Are High On Cannabis Stocks, But Life Insurance Is the Safer Bet

by Tom Bowley

Market Recap for Wednesday, September 19, 2018 The biggest news stories technically-speaking yesterday were the breakout in financials (XLF, +1.70%) and the rising 10 year treasury yield ($TNX), which closed at 3.08% and is just 3 basis points from testing a 7 year high.  But September 19, 2018 will likely be remembered more for the wild trading day for cannabis stocks.  One of the most visible, Tilray (TLRY), went on a ride that would have impressed any amusement park enthusiast.  TLRY's CEO Brendan Kennedy joined Jim Cramer on CNBC's Mad Money Tuesday evening and Read More 

Trading Places with Tom Bowley

Rising Treasury Yields Portend Much Higher S&P 500, But Short-Term....

by Tom Bowley

Market Recap for Tuesday, September 18, 2018 It was a solid day on Wall Street.  One day after seeing weakness in key areas like technology, consumer discretionary and tranportation stocks and the increasing historical likelihood of further downside action, stocks rebounded.in a big way.  Leading the charge were our aggressive sectors - consumer discretionary (XLY, +1.27%), industrials (XLI, +0.91%), and technology (XLK, +0.64%).  Energy (XLE, +0.66%) also had a strong session, but failed at short-term price resistance: The bounce off 72 price support Read More 

Trading Places with Tom Bowley

Technology Is Teetering; How Much More Selling Is Healthy?

by Tom Bowley

Market Recap for Monday, September 17, 2018 Selling in technology (XLK, -1.25%) and consumer discretionary (XLY, -1.24%) resulted in losses across our major indices on Monday.  The NASDAQ, understandably, felt the brunt of the selling as this tech-laden index dropped 1.43%.  The Russell 2000 ($RUT) suffered the most technical damage, shedding more than 1% to close beneath its recent breakout level: Earlier this year (January and March) when we had multiple tops form resistance, the break above resulted in solid support during the profit taking period that ensued.  In Read More 

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