Trading Places with Tom Bowley

Leadership Returns To NASDAQ 100; Watch This Key Resistance

Market Recap for Monday, August 7, 2017

There's nothing wrong with the Dow Jones moving to all-time highs for the ninth consecutive trading session.  However, higher prices on the more aggressive NASDAQ and Russell 2000 show traders' appetite for riskier investments and it's that risk element that helps to fuel bull markets.  On Monday, traders returned to the more aggressive NASDAQ 100 ($NDX) stocks.  In fact, the top three stocks in the NDX yesterday (and four of the top five) were semiconductor stocks ($DJUSSC).  The DJUSSC remains very solid on its daily chart, but the weekly negative divergence persists.  And let's not forget that the DJUSSC has averaged losing 5% during the month of September over the past couple decades.  So will this latest strength be the group's last for awhile?  We'll soon find out, but here's the chart to be aware of:

Continue reading "Leadership Returns To NASDAQ 100; Watch This Key Resistance" »

Solid Jobs And Treasury Selling Lifts U.S. Equities

Special Note

I will be joining John Hopkins, President of EarningsBeats.com, for a special earnings-related webinar that begins at 4:15pm this afternoon, just after the market closes.  I'll be providing several of my favorite stocks from the current parade of earnings so please join me and John later today.  CLICK HERE for more information and to register for this special event.

Continue reading "Solid Jobs And Treasury Selling Lifts U.S. Equities" »

August Means Road Construction Ahead For Truckers; July Jobs Report On Deck

Market Recap for Thursday, August 3, 2017

The Dow Jones was once again able to eke out a meager 9 point gain to establish yet another record closing high, but other indices were unable to keep up.  The more aggressive Russell 2000 and NASDAQ fell by 0.54% and 0.35%, respectively, and the benchmark S&P 500 also fell 0.22%.  Over the past two weeks, the S&P 500 has traded in a very narrow 1% range established by the high and low on July 27th.  The S&P 500 is basing in sideways consolidation fashion following an uptrend - and that's generally bullish.  However, let's keep in mind that all of our major indices are showing wear and tear on their long-term weekly charts in the form of negative divergences.  Here's the reminder:

Continue reading "August Means Road Construction Ahead For Truckers; July Jobs Report On Deck" »

Consumer Relationship Still Pointing To Higher Prices

Market Recap for Wednesday, August 2, 2017

The action on Wednesday was quite boring once again, despite hundreds of companies reporting their quarterly results.  The Dow Jones jumped another 52 points to a fresh record high - which it's been seeing daily - and it pierced 22000 for the first time in its history, touching 22036 at its intraday high before settling in at 22016 at the close.  The benchmark S&P 500 rose another point to 2477, but one of its biggest technical issues - a weekly negative divergence - hasn't seen any improvement:

Continue reading "Consumer Relationship Still Pointing To Higher Prices" »

Financials Lead Dow Jones Rally; Costco Rebounds

Market Recap for Monday, July 31, 2017

The Dow Jones set another all-time high on Monday, rising another 60 points in its lone attempt to carry the bull market to new heights.  All of our other major indices fell on Monday despite the renewed strength of financials (XLF, +0.72%).  Home Depot (HD) was the leading component and the only stock in the Dow Jones to gain more than 1%.  HD may struggle to lead the Dow much further, however, as price and volume trends have both turned south.  Check out the latest HD chart:

Continue reading "Financials Lead Dow Jones Rally; Costco Rebounds" »

Defense Stocks Bounce Off Price Support; Dow Jones Sets New Record

Market Recap for Friday, July 28, 2017

The U.S. stock market has been quite resilient and today wraps up a very strong July.  On Friday, only the Dow Jones finished higher - and at a fresh new record high - while healthcare (XLV, +0.50%) and industrials (XLI, +0.23% were the only two sectors to finish in positive territory.  The NASDAQ remained under pressure after heavy selling on Thursday afternoon kept buyers at bay.  The technology bulls will see an early test on the NASDAQ's 60 minute chart as the opening bell rings:

Continue reading "Defense Stocks Bounce Off Price Support; Dow Jones Sets New Record" »

Amazon Disappoints, Techs Look To Head Lower

Market Recap for Thursday, July 27, 2017

The mostly unabated rise in technology shares off the early July low took a sudden turn lower on Thursday afternoon and the initial reactions to quarterly earnings reports from Amazon.com (AMZN) and Starbucks (SBUX) won't help this morning as they're down 2.72% and 6.25%, respectively, in pre-market action.  The solid uptrend in the NASDAQ 100 ($NDX) actually broke a few days ago, but prices have continued pushing higher amid slowing price momentum.  Check out this chart:

Continue reading "Amazon Disappoints, Techs Look To Head Lower" »

Transportation Services Ready To Breakout, Ryder Trucking Along

Market Recap for Wednesday, July 26, 2017

The small cap Russell 2000 index struggled, finishing down 0.56% on Wednesday's session, but it was another day of record high closes elsewhere as the Dow Jones, S&P 500 and NASDAQ all advanced.  The FOMC provided its latest policy statement at 2pm EST yesterday, but after some brief weakness, our major indices recovered and the move to new highs was underway.

Continue reading "Transportation Services Ready To Breakout, Ryder Trucking Along" »

Copper And Oil Surge; Materials Among Leaders

Market Recap for Tuesday, July 25, 2017

Energy shares (XLE, +1.26%) received another boost when crude oil prices ($WTIC) surged on Tuesday to close at $47.89 per barrel (+3.34%), its highest close in nearly two months.  While the crude oil spike extends a very nice rally off its triple bottom low in June, the XLE has yet to break the steep downtrend that it's been mired in during 2017.  Here's a current chart of both the WTIC and XLE:

Continue reading "Copper And Oil Surge; Materials Among Leaders" »