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

Energy Rebounds Plus 10 Trade Setups For Today

by Tom Bowley

Market Recap for Friday, April 5, 2019 Energy stocks (XLE, +1.76%) were the clear leader on Friday as Wall Street climbed once again.  Recently, crude oil prices ($WTIC, +1.58%) opened April by posting new 2019 highs, but the XLE failed to follow suit, instead falling back to test its rising 20 day EMA.  I discussed on MarketWatchers LIVE the probability that we'd see the XLE bounce off its 20 day EMA and break to new highs as the positive correlation between the XLE and WTIC is very strong.  The XLE bounced as expected: Not only did the XLE bounce, but it Read More 

Trading Places with Tom Bowley

Nonfarm Payrolls Hit A Sweet Spot This Morning

by Tom Bowley

Market Recap for Thursday, April 4, 2019 Our major indices rallied again on Thursday with the benchmark S&P 500 rising for a 6th consecutive session and closing at a 2019 high.  The S&P 500's close of 2879 was just 61 points shy of the all-time high of 2940.91 set on September 21, 2018.  Leadership came from materials (XLB, +1.01%), energy (XLE, +0.83%) and consumer discretionary (XLY, +0.81%).  Technology (XLK, -0.42%) took a rare day off as software stocks ($DJUSSW, -1.19%) lagged badly: Software has shown tremendous relative strength, though, so I'd Read More 

Trading Places with Tom Bowley

REITs Have Been Strong And This Group Loves April

by Tom Bowley

Market Recap for Wednesday, April 3 Stocks rallied again on Wednesday, primarily on the heels of materials (XLB, +1.31%) and technology (XLK, +0.81%).  The former saw relative strength in both commodity chemicals ($DJUSCC, +1.77%) and specialty chemicals ($DJUSCX, +1.39%).  The strength in the DJUSCC was very important technically as it finally cleared overhead resistance in the 450-460 range: To be clear, the breakout is very nice and bullish, but I would not ignore the bottom part of this chart where we see the DJUSCC badly underperforming the S&P 500 on a relative Read More 

Trading Places with Tom Bowley

Internet Stocks Looking Good In A Variety Of Relative Strength Ways

by Tom Bowley

Market Recap for April 2, 2019 The NASDAQ was mostly higher and strengthening throughout the session on Tuesday as internet stocks ($DJUSNS, +1.41%) continued their recent advance to challenge 2019 highs.  Facebook (FB, +3.26%) led internet stocks higher and broke out to close at its 2019 high on increasing volume, a bullish sign: Twitter (TWTR, +0.93) also rose nicely and is on the verge of filling its gap from early February.  The DJUSNS is definitely showing improving relative strength and has been since late-November.  Check out the Current Outlook section Read More 

Trading Places with Tom Bowley

Financials Benefiting From Rising Treasury Yields

by Tom Bowley

Market Recap for Monday, April 1, 2019 U.S. equities had a stunning first quarter and Monday was an encore to open up Q2.  Keep in mind that we’ve entered the most bullish period within April historically as the NASDAQ has produced annualized returns of +21.45% from April 1 through April 18 since 1971.  If we strip out April 13and 14, which are typically down days (perhaps to raise cash for April 15 income taxes?), the annualized return jumps to 31.17%. It’s not unusual for the stock market to make a significant run higher into the start of quarterly earnings Read More 

Trading Places with Tom Bowley

Key Relative Strength Signs Pointing To Higher Equity Prices

by Tom Bowley

Market Recap for Friday, March 29, 2019 The U.S. stock market rallied on Friday, putting an exclamation point on its best calendar quarter in 10 years.  Of course, this strength came on the heels of an incredibly dismal quarter to end 2018.  Healthcare (XLV, +1.20%) and industrials (XLI, +1.08%) led the bullish assault, while energy (XLE, -0.15%) and real estate (XLRE, -0.03%) trailed the field. Most areas within healthcare were strong, but biotechnology ($DJUSBT, +1.89%) and medical supplies ($DJUSMS, +1.83%) were the clear winners.  A huge winner in biotech was Celgene Read More 

Trading Places with Tom Bowley

Strong Earnings Lift Clothing Stocks

by Tom Bowley

Market Recap for Thursday, March 28, 2019 Lululemon Athletica (LULU, +14.13%), PVH Corp (PVH, +14.76%), and Movado Group (MOV, +22.77%) all surged after the clothing & accessories retailers all posted much better than expected quarterly earnings.  The Dow Jones U.S. Clothing & Accessories Index ($DJUSCF, +5.10%) stormed higher and closed at its highest level since early November.  The DJUSCF has more work to do, but yesterday was a very good start as the DJUSCF made a relative trendline breakout vs. the benchmark S&P 500: Despite the strength in this Read More 

Trading Places with Tom Bowley

Home Construction Is Loving This Treasury Yield Decline

by Tom Bowley

Market Recap for Wednesday, March 27, 2019 Wall Street rebounded from steep intraday losses, but still ended the session in negative territory.  The NASDAQ was the weakest index, falling 0.63%.  The S&P 500, Russell 2000 and Dow Jones dropped 0.46%, 0.39%, and 0.13%, respectively.  Industrials (XLI, +0.11%) was the lone sector to finish with a gain.  Airlines ($DJUSAR, +1.92%) enjoyed a monster day, although there's still plenty of work to do technically for this group: Airlines have been extremely weak on both an absolute and relative basis Read More 

Trading Places with Tom Bowley

Crude Oil, Energy Lead Wall Street Higher

by Tom Bowley

Market Recap for Tuesday, March 26, 2019 Strength in global markets seemed to influence the U.S. market at the open as equities surged higher.  But sellers dominated most of the balance of the day as gains evaporated.  A final 30 minute surge just before the close restored some of the earlier gains and all of our major indices finished in positive territory, led by the Russell 2000's 1.01% climb.  All 11 sectors managed to end the gains with gains as well.  Energy (XLE, +1.44%) and the beaten-down financials (XLF, +1.19%) led on a relative basis.  Banks ($DJUSBK Read More 

Trading Places with Tom Bowley

Seasonality And Price Support Suggest TSLA Is A Buy

by Tom Bowley

Market Recap for Monday, March 25, 2019 U.S. stocks finished in bifurcated fashion on Monday as the S&P 500 and NASDAQ lost 0.08% and 0.07%, respectively, while the Dow Jones tacked on 0.06%.  The small cap Russell 2000 was a relative outperformer, gaining 0.46% on the session.  All of our major indices were struggling and in negative territory with 90 minutes left in the trading day.  Resiliency then surfaced, as we often see during bull market advances.  One big positive was the reversal in the Volatility Index ($VIX) after testing overhead resistance near 18: Read More 

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