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 Part Of Energy Completes Right Side Of Cup, Very Bullish

by Tom Bowley

Market Recap for Monday, July 30, 2018 Only three sectors were able to finish in positive territory on Monday as bears permeated Wall Street.  Two of the three - financials (XLF, +0.07%) and healthcare (XLV, +0.06%) - barely managed to eke out gains.  The only real strength was found in energy (XLE, +0.82%) as crude oil prices ($WTIC) closed above $70 per barrel for the first time in two weeks.  Leading energy higher were exploration & production stocks ($DJUSOS), which are highlighted below in the Sector/Industry Watch section. For a third Read More 

Trading Places with Tom Bowley

Twitter Provides Internet Bears A Double Dose Of Adrenaline

by Tom Bowley

Market Recap for Friday, July 27, 2018 A second wave of internet troubles came in the form of Twitter Inc (TWTR) after the recently-soaring internet giant disappointed traders with its latest quarterly results.  It was an UGLY reaction by Wall Street as TWTR fell nearly 21% exactly one day after Facebook's (FB) 19% haircut.  These two earnings reports were responsible for a big reversal in internet stocks last week: The good news, I suppose, is that the DJUSNS had been on a tear and in the midst of a solid up channel.  It had room for a decline, but after the selling Read More 

Trading Places with Tom Bowley

Key S&P 500 Support To Watch And Why I Wouldn't TOUCH Facebook

by Tom Bowley

Market Recap for Thursday, July 26, 2018 There was clear market bifurcation on Thursday as The Travelers Cos (TRV) and Walt Disney Co (DIS) both gained more than 2% to lead the Dow Jones Industrial Average to a 113 point gain.  Five other Dow components gained more than 1%, while only McDonalds (MCD) and Microsoft (MSFT) managed to lose more than 1% and the latter's drop was due more to profit taking than anything else after a stellar recent earnings report and advance.  Meanwhile, Facebook (FB, -19.00%) tumbled after shocking Wall Street with an awful quarterly earnings Read More 

Trading Places with Tom Bowley

Facebook Slammed After Missing Revenues And Lowering Future Revenue Growth Rate

by Tom Bowley

Market Recap for Wednesday, July 25, 2018 All of our major indices finished higher on Wednesday, as did all sectors.  Relative strength was found in several areas including industrials (XLI, +1.52%), healthcare (XLV, +1.28%) and technology (XLK, +1.25%).  Waste & disposal services ($DJUSPC, +5.04%) surged on the back of Waste Management's (WM) strong quarterly earnings report.  Similarly, United Parcel Service (UPS) lifted the delivery services ($DJUSAF) space, gaining 6.90%.  Both stocks ended the day well above where they started it as buying persisted Read More 

Trading Places with Tom Bowley

Small Caps Are Looking To Regain Their Relative Strength

by Tom Bowley

Market Recap for Tuesday, July 24, 2018 Earnings are dominating the headlines and the action on Wall Street.  The Dow Jones and S&P 500 had been underperforming its NASDAQ and Russell 2000 counterparts throughout much of the second quarter.  As a result, their positive earnings surprises seem to be garnering much more positive attention than what we've seen on the NASDAQ.  For instance, last Thursday after the bell, Microsoft (MSFT) delivered a solid quarterly report and saw initial strength at Friday's open.  But then the sellers took over.  Yesterday Read More 

Trading Places with Tom Bowley

Toys Have Been Hot, But Don't Ignore This Warning Sign

by Tom Bowley

Market Recap for Monday, July 23, 2018 Financials (XLF, +1.38%), especially banks ($DJUSBK, +1.86%), led Wall Street on Monday as the rising 10 year treasury yield ($TNX) provides hope for increasing profits in the quarters ahead for this influential industry group.  There's a very strong and tight positive correlation between these two, highlighted on the following chart: The recent strength in the DJUSBK has resulted in a solid breakout of a bullish wedge pattern.  This breakout has accompanied a surge higher in the TNX.  This once again underscores the positive Read More 

Trading Places with Tom Bowley

This Small Cap Healthcare Stock Is My Pick Again

by Tom Bowley

Market Recap for Friday, July 20, 2018 Software ($DJUSSW, +0.86%) led once again on Friday, thanks in large part to another impressive quarterly earnings report from technology (XLK, +0.03%) giant Microsoft Corp (MSFT).  It was a fairly narrow technology advance as software and internet ($DJUSNS, +0.25%) were the only two technology industries to gain ground.  In fact, leadership from Friday came in the form of consumer staples (XLP, +0.61%), which benefited from a powerful rally in tobacco stocks ($DJUSTB, +2.84%).  Philip Morris (PM, +4.22%) surged to close at its highest Read More 

Trading Places with Tom Bowley

Financials Appear Poised To Regain Their Leadership

by Tom Bowley

Market Recap for Wednesday, July 18, 2018 We were mostly higher on Wednesday, although gains were slight.  One exception was the NASDAQ, which finished less than one point lower.  Otherwise, we saw green.  Despite mostly higher prices, leadership really came from just two sectors - financials (XLF, +1.60%) and industrials (XLI, +1.10%).  It's been awhile since we talked about leadership from these two sectors as the 10 year treasury yield ($TNX) has consolidated after a major run higher to open 2018.  Negative trade headlines have also impacted industrials in a Read More 

Trading Places with Tom Bowley

Consider This Materials Stock That Just Broke Out From Bullish Inverse Head & Shoulders Pattern

by Tom Bowley

Special Note I will be on a short mini-vacation beginning Friday, July 20th.  Therefore, I will not be writing a Trading Places blog article that day.  I will be back on Monday, however, with my latest recap and thoughts on the stock market.  If you enjoy my blog, please subscribe at the bottom of this article by typing in your email address and clicking the green "Subscribe" button.  You'll then receive my blog articles via email as soon as they're published!  Thanks for your support and happy trading to all! Market Recap for Tuesday Read More 

Trading Places with Tom Bowley

Netflix Slammed After Missing Revenue And Subscriber Estimates

by Tom Bowley

Market Recap for Monday, July 16, 2018 The Dow Jones saw buying late in Monday's session, pushing this index of giants into positive territory.  Leadership was clear.  Large money center banks performed well and JP MorganChase (JPM) was easily the best perfoming Dow Jones stock, gaining nearly 4%.  On the S&P 500, banks dominated as well with 5 of the top 8 performing S&P 500 stocks in the banking space, led by Bank of America (BAC), JPM, and Citigroup (C).  Banks have done a nice job of holding key price support and now are challenging overhead Read More 

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