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

2019 Second Half Outlook Plus 8 Monday Setups

by Tom Bowley

Market Recap for Friday, June 28, 2019 I'm posting this early (and on Sunday) this week because I did a lot of chart-reviewing this weekend and there's a lot to digest here.  Before I get into my Market Outlook for the second half of the year, let's take a very quick look at Friday's action. Well, we closed out Q2 on a positive note.  All of our major indices ended Friday in positive territory and 9 of 11 sectors were higher as well.  Consumer staples (XLP, -0.07%) and technology (XLK, -0.01%) were minor losers on the session.  Financials (XLF, +1.43%), led by Read More 

Trading Places with Tom Bowley

Real Estate Poised To Bounce After Rough Week

by Tom Bowley

Market Recap for Thursday, June 27, 2019 It was mostly a solid day on Wall Street, except for the late selling that carried the Dow Jones to a slight 10 point loss.  The problem child for the Dow Jones was Boeing (BA, -2.91%), which fell after providing an update on its 737 MAX planes.  Technically, let's watch the 360 price support level for BA as that's been a key pivot area on the stock for some time: Meanwhile, the small cap Russell 2000 ($RUT, +1.90%) exploded to the upside, finally leading the major indices in a meaningful way.  This outperformance comes at a Read More 

Trading Places with Tom Bowley

This Industry Group Is Printing A Handle

by Tom Bowley

Market Recap for Wednesday, June 26, 2019 It was a day of bifurcated action as the NASDAQ was able to cling to a 0.32% gain, but the other major indices fell.  Honestly, it felt like a down day on the NASDAQ as well.  This tech-laden index surged to a 90 point gain right out of the gate, but saw those early gains erode throughout the session.  There were definitely positives that emerged yesterday, however.  One of the biggest was an earnings surprise out of Micron Technology (MU, +13.34%), which also indicated a subtle improvement in demand seemed to be in place Read More 

Trading Places with Tom Bowley

You Just Need To Beware One Week In July

by Tom Bowley

Market Recap for Tuesday, June 25, 2019 Sellers returned to the stock market yesterday as the NASDAQ posted a 1.51% drop, its largest decline since June 3rd.  Volatility ($VIX, +6.68%) has been on the move higher as the market grows more nervous with the G-20 summit beginning later this week: The bold red circle shows the VIX breaking above its 10 day moving average from low levels (complacency).  Other breaks above the 10 day moving average, including the latest, occurred with the VIX in an overall downtrend.  I wouldn't pay as much attention to this sudden increase Read More 

Trading Places with Tom Bowley

Seasonality Suggests BIDU Could Be Ready To Launch

by Tom Bowley

Market Recap for Monday, June 24, 2019 The U.S. stock market waffled yesterday as the G-20 summit set to begin later this week.  We know from history that any time the headlines are littered with US-China trade, we need to be vigilant.  While there wasn't widespread selling yesterday, equities weren't able to build upon recent all-time highs either.   The Dow Jones was the lone index to end Monday's session with gains as that index of conglomerates managed to eke out an 8 point gain.  Meanwhile, the small cap Russell 2000 ($RUT, -1.26%) lagged badly once again Read More 

Trading Places with Tom Bowley

S&P 500 Flat But Healthcare Showing Relative Strength

by Tom Bowley

Market Recap for Friday, June 21, 2019 The S&P 500 ended Friday's session relatively flat, but had a very solid week as it raced to an all-time high before sellers hit on quad-witching day.  As usual, quad-witching day volume was extremely heavy.  I wouldn't read too much into that.  Given the strength of the daily PPO, I believe either the S&P 500 will continue pushing higher this week.or potentially test its rising 20 day EMA if sellers decide we've seen too much in this rally.  However, keep in mind that the stock market has a strong tendency to move Read More 

Trading Places with Tom Bowley

S&P 500 Breaks Record, Crude Oil Surges

by Tom Bowley

Market Recap for Thursday, June 20, 2019 More dovish Fed policy is already having its effects.  The anticipation of those changed policies has sent investors around the globe into U.S. treasuries, as yields have dropped precipitously since Q4 2018.  But yesterday, U.S. equities climbed aboard as the S&P 500 sailed to all-time highs as to both intraday and closing value: I don't know, but that looks like a pretty nice uptrend and a breakout to boot.  We're in a secular bull market and we're going higher. Leadership on Thursday came from energy Read More 

Trading Places with Tom Bowley

Fed Offers Traders Hope, Travel & Tourism Has Big Challenge Ahead

by Tom Bowley

Market Recap for Wednesday, June 19, 2019 Yesterday was Fed day, or Fednesday as one MarketWatchers LIVE viewer said, and U.S. equities liked what the Fed had to say.  What it had to say was essentially what most market pundits were expecting - that the word "patient" would be removed from the Fed's policy statement and that the likelihood of an upcoming rate cut would be apparent.  After the meeting, fed funds futures implied that we will see a rate cut when the Fed meets again in July. All of our major indices gained ground on Wednesday, albeit the gains were Read More 

Trading Places with Tom Bowley

Relative Strength In Two Key Sectors Says All We Need To Know

by Tom Bowley

Market Recap for Tuesday, June 18, 2019 It was a day of rallying global equities, especially in the German DAX ($DAX, +2.03%).  The DAX ($DAX) moves more in sync with U.S. equities than any other foreign equity market - in my opinion.  The long-term positive correlation between the DAX and the S&P 500 backs me up on this.  Therefore, we shouldn't ignore what the DAX did yesterday: The DAX was under pressure throughout much of 2018, especially after breaking down from a topping head & shoulders pattern.  That measurement was achieved in December Read More 

Trading Places with Tom Bowley

Autos Back On The Road To Nowhere; Tesla Loves June

by Tom Bowley

Market Recap for Monday, June 17, 2019 Facebook (FB, +4.24%) announced a platform cryptocurrency with a white paper due out today, while Netflix (NFLX, +3.21%) received positive comments from a Piper Jaffray analyst looking for solid results out next month.  That combination lifted communications services (XLC, +1.14%) to the top of the sector leaderboard, while also providing a big boost to internet stocks ($DJUSNS, +1.89%).  Real estate (XLRE, +1.09%) and energy (XLE, +0.84%) were also sector winners on the session as the Russell 2000 ($RUT, +0.67%) and NASDAQ ($COMPQ, +0.62%) Read More 

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