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

Here's A Bear Market Signal That's Yet To Turn Bearish

by Tom Bowley

Market Recap for Friday, November 30, 2018 Friday's strength capped off a very solid week for the bulls, one in which the Dow Jones gained more than 1250 points.  Strength was found everywhere although healthcare (XLV, +2.03%) and utilities (XLU, +1.48%) were the big winners to end the week.  While biotechs ($DJUSBT, +2.21%) surged to highs not seen in more than a month (see Sector/Industry Watch section), pharmas ($DJUSPR, +1.31%) were actually able to close at all-time highs, underscoring the relative strength that the group's enjoyed since May: Read More 

Trading Places with Tom Bowley

Volatility Index Suggests That Impulsive Selling Could Return

by Tom Bowley

Market Recap for Thursday, November 29, 2018 Before I discuss strength and weakness from the mixed action on Thursday, let me first say that the Volatility Index ($VIX) remains one of my biggest fears about the current state of the market.  In the morning yesterday, the VIX touched its high from Monday despite the S&P 500 trading much, much higher than it did on Monday: The VIX did settle back down by the end of Thursday's session, but the sudden spike near its weekly high on a poor initial jobless claims report suggests we might want to wear our crash helmets next Friday if Read More 

Trading Places with Tom Bowley

U.S. Equities Rally Big Time, But I Remain Very Cautious

by Tom Bowley

Market Recap for Wednesday, November 28, 2018 Wall Street finally (!) had a day where the bulls could smile at 4pm EST.  It was a trend day where the buying begins early and continues throughout the trading day.  These days tend to be very bullish, although there is still plenty to worry about (see Current Outlook and Sector/Industry Watch sections below).  Strength could be found everywhere on Wednesday.  The NASDAQ and Russell 2000 led the advance with gains of 2.95% and 2.51%, respectively.  But Dow Jones components tacked on 2.50% as Verizon Communications Read More 

Trading Places with Tom Bowley

Here's What's Wrong With Commodities....And Are Renewable Energy Stocks Finally Bottoming?

by Tom Bowley

Market Recap for Tuesday, November 27, 2018 One highlight from Tuesday's action is that the U.S. Dollar ($USD, +0.31%) remains in favor as it nears yet another breakout.  This is important on a number of fronts, especially with respect to gold ($GOLD, -0.74%).  There's been a very solid inverse relationship between the direction of GOLD and the direction of the USD for decades.  When the USD is on the rise, GOLD significantly underperforms the benchmark S&P 500.  When the opposite is true, GOLD is a major beneficiary: Until early October, the Read More 

Trading Places with Tom Bowley

Home Construction Has Bottomed And Here's An Unrelated Stock To Bolster Your Holidays

by Tom Bowley

Market Recap for Monday, November 26, 2018 Yesterday marked the first day in quite awhile where we saw all of our major indices higher, along with all of our sectors.  All eleven sectors gained ground, even the defensive sectors - though they lagged badly on a relative basis.  Leading the charge were communication services (XLC, +2.28%), technology (XLK, +2.26%) and consumer discretionary (XLY, +2.24%).  Financials (XLF, +2.04%) was the fourth of our aggressive sectors to post a gain in excess of 2%.  While this action changes absolutely nothing on the charts, it Read More 

Trading Places with Tom Bowley

Bears Control The Action Despite Inability To Take Out Major Support

by Tom Bowley

Market Recap for Friday, November 23, 2018 Friday's action was disappointing on a couple of different levels.  First, the Friday morning attempt at a rally failed midday and sellers emerged into the close.  It was somewhat similar to the action on Wednesday when the early morning gap higher and rally gave way to afternoon sellers.  Second, the Friday after Thanksigiving has historically had a very bullish slant to it and that really never materialized, except on the small cap Russell 2000, which outperformed and did manage to hang onto a fractional gain to close Read More 

Trading Places with Tom Bowley

Friday After Thanksgiving Generally Belongs To The Bulls

by Tom Bowley

Market Recap for Wednesday, November 21, 2018 Wall Street was mostly higher on Wednesday, although, by just about any other measure, it was a disappointing session.  The early morning gap higher was essentially where the bullishness ended and there was a slow drift lower throughout the balance of the day.  The NASDAQ rose just enough to challenge its declining 20 hour EMA, but never could get the burst it needed to clear this short-term hurdle: The red arrows mark many short-term tops and they illustrate the difficulty of penetrating this key moving average Read More 

Trading Places with Tom Bowley

VIX Hits November High; Apparel Retailers, Railroads Crushed

by Tom Bowley

Market Recap for Tuesday, November 20, 2018 It was another ugly day for U.S. equities as the February price support on our major indices draws closer and closer.  Volatility shot higher as panicked, impulsive selling once again gripped Wall Street.  Energy (XLE, -3.28%), consumer discretionary (XLY, -2.26%) and financials (XLF, -2.20%) were hit hardest, especially the apparel retail industry ($DJUSRA, -6.01%) within consumer discretionary.  I discuss the weakness there in the Sector/Industry Watch section below. While industrials (XLI, -2.07%) was Read More 

Trading Places with Tom Bowley

Impulsive Selling Returns And VIX Spikes Amid Technology Assault; Futures Tanking

by Tom Bowley

Market Recap for Monday, November 19, 2018 I'd like to say something good about yesterday's action on Wall Street, but I don't think there's anything to be said.  Impulsive selling returned with little in the way of a bid on technology stocks (XLK, -3.81%) as this highly-influential sector fell to its lowest level in over six months.  The best performing industry group within technology was telecommunications equipment ($DJUSCT), which only lost 1.71%.  Essentially, where there was technology, there were losses.  And some mighty big losses at that Read More 

Trading Places with Tom Bowley

Small Caps Need To Hold Onto This Price Support

by Tom Bowley

Special Event Join me and John Hopkins, President of EarningsBeats.com, after the bell today for a 4:30pm EST webinar.  I'll be discussing the stocks that I believe represent the best trading opportunities of Q4.  These stocks all posted better-than-expected quarterly revenues and EPS and significant accumulation appears to be taking place.  For more information, you can CLICK HERE. Market Recap for Friday, November 16, 2018 We closed out the week with mostly gains across our major indices.  The NASDAQ was a notable exception, losing 11 Read More 

Subscribe to Trading Places with Tom Bowley to be notified whenever a new post is added to this blog!