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

Stocks Slammed, Futures Lower; Here's A Possible Support Level

by Tom Bowley

Market Recap for Friday, February 2, 2018 It was an ugly day on Wall Street.  In fact, it was the ugliest day on Wall Street since June 24, 2016, when the Dow Jones last fell more than 600 points.  Friday's drop was 665 points and the technical damage was obvious.  The volume was very heavy and the rising 20 day EMA was lost for only the second time since September.  That last time, in mid-November, it was a close slightly beneath the 20 day EMA and the very next day the Dow recovered and it's been trading above its 20 day EMA ever since.  Now that the 20 day Read More 

Trading Places with Tom Bowley

AAPL, AMZN And GOOGL Report Results; Futures Tumble

by Tom Bowley

Market Recap for Thursday, February 1, 2018 We saw a lot of bifurcation in the market on Thursday.  The more aggressive NASDAQ and Russell 2000 rebounded and finished in positive territory, while both the Dow Jones and S&P 500 fell on the session.  Four sectors finished higher, while five retreated. Among the winners on Thursday, energy (XLE, +1.03%) rebounded after closing beneath its 20 day EMA the previous two days.  It was the first time we've seen the XLE close below its 20 day EMA on consecutive days since late November.  Financials (XLF, +0.94%) also Read More 

Trading Places with Tom Bowley

U.S. Equities Bounce; Small Caps Face Stiff Test

by Tom Bowley

Market Recap for Wednesday, January 31, 2018 Following the heavy selling on Tuesday, the bulls were just hoping to stop the bleeding.  I'd say they had some success as the Dow Jones, S&P 500 and NASDAQ all finished in positive territory.  Overall action was bifurcated, however, as small caps ended the session in negative territory.  In pre-market action, the latest ADP employment report showed that strength in jobs continues.  In January, the ADP report came in at 234,000 jobs, easily outpacing the 195,000 consensus estimate.  That generally bodes well for the Read More 

Trading Places with Tom Bowley

Sellers Stampede Wall Street; Dow Jones Tumbles 362 Points

by Tom Bowley

Market Recap for Tuesday, January 30, 2018 This day was a long time coming.  The U.S. stock market's uninterrupted surge to record all-time highs day after day, week after week and month after month needed a break.  It needed relief.  Yesterday that relief was found.and it came in a hurry.  We saw significant gaps lower on all of our major indices and we closed near the day's low on both the Dow Jones and S&P 500.  Action on the NASDAQ was actually somewhat bullish as this tech-laden index finished with a slightly hollow candle, meaning that it closed above Read More 

Trading Places with Tom Bowley

Apple Tests Major Support As Its Earnings Report Nears

by Tom Bowley

Market Recap for Monday, January 29, 2018 We saw something different in the U.S. stock market on Monday.  We closed in negative territory on all of our major indices and we closed at or near lows for the day.  There was little or no bargain hunting at the end of the session.  So is that it?  Have we come to the end of this bull market rally?  Well, I'd say it's premature to start that dialogue, despite red futures this morning.  We are dealing with some short-term negative divergences on our hourly charts, however, so we could be in for another day or two of Read More 

Trading Places with Tom Bowley

Bulls Stomp On The Gas, Biotechs Explode

by Tom Bowley

Market Recap for Friday, January 26, 2018 The bears were absolutely stymied on Friday as the major indices surged to unprecedented levels.  Despite the very overbought conditions that have persisted on many indices for four months now, bulls dominated the action and show no signs of letting up.  When you see a rally like the one we saw on Friday, it's bullish.  But it's particularly bullish when you witness the type of leadership we saw.  While the defensive-oriented healthcare sector (XLV, +2.15%) led the rally, the strength within that space came from biotechnology Read More 

Trading Places with Tom Bowley

Utilities Rebound; Dow Jones Sets Fresh Record

by Tom Bowley

Market Recap for Thursday, January 25, 2018 Utilities (XLU, +1.55%) easily enjoyed its best day of 2018 on Thursday as significant price support, combined with falling treasury yields, triggered an explosive move higher as buyers could not get enough of the beaten-down sector.  Here's the chart: The green shaded area provided the support and encouragement the bulls needed to make a stand and yesterday's move higher was accompanied by excellent volume.  So we definitely want to respect the 49.50-50.50 area as a major price support zone.  To the upside, I'm watching two key Read More 

Trading Places with Tom Bowley

Strength In Banks And Insurance Lead Bifurcated Market

by Tom Bowley

Market Recap for Wednesday, January 24, 2018 Only the Dow Jones was able to end Wednesday's session in positive territory, but all of our major indices remain very strong with accelerating bullish price momentum.  Sectors and industries have taken their turns leading U.S. stocks higher and yesterday it was banks ($DJUSBK) and insurance - full line ($DJUSIF), brokers ($DJUSIB) and life ($DJUSIL).  The 10 year treasury yield ($TNX) jumped three basis points to 2.65% and that sent traders right back into interest-sensitive stocks that benefit from higher rates. Read More 

Trading Places with Tom Bowley

Utilities Lead As Market Rally Pauses; PCLN breaks out

by Tom Bowley

Market Recap for Tuesday, January 23, 2018 The tech-laden NASDAQ powered forward to new all-time highs on Friday, closing above 7400 for a second consecutive session and now approaching 7500.  All of our major indices ended higher, except for the Dow Jones, which saw a last minute bout of selling to finish 3 points lower.  In an unusual twist, utilities (XLU) gained 0.96% to top the sector leaderboard.  The XLU has bounced repeatedly in the 49.50-50.50 level, so Tuesday's strength shouldn't come as a big surprise to technicians. Consumer discretionary Read More 

Trading Places with Tom Bowley

Energy Soars But Its Relative Strength Might Surprise You

by Tom Bowley

Market Recap for Monday, January 22, 2018 There was a lot of good things happening on Monday.  First of all, one of the worst days historically has been the Monday after options expiration Friday.  That historical weakness never materialized yesterday as all of our major indices trended up throughout the entire session with the NASDAQ and Russell 2000 closing above 7400 and 1600, respectively, for the first time in their histories.  Strength was felt in nearly every corner of the market, but most notably in energy (XLE, +2.16%), consumer discretionary (XLY, +1.11%) and Read More 

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