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

Consumer Stocks Roll; NASDAQ Breaks 7600

by Tom Bowley

Market Recap for Monday, June 4, 2018 Consumer stocks - discretionary (XLY, +1.12%) and staples (XLP, +0.83%) - led Wall Street higher on Monday, especially the NASDAQ, which closed above 7600 for the first time in its history.  The highest candle body on the NASDAQ, however, is at the March 13th open, which was 7627.52.  That's the bulls next target.  Technology (XLK, +0.80%) also was strong, particularly internet stocks ($DJUSNS) as they've now jumped more than 100 points since their 20 day EMA test one week ago: The DJUSNS is now moving into overbought Read More 

Trading Places with Tom Bowley

Strong Jobs Report Powers NASDAQ To Near Record Close

by Tom Bowley

Market Recap for Friday, June 1, 2018 Technology (XLK, +1.70%) and materials (XLB, +1.53%) led Wall Street higher on Friday after the May nonfarm payrolls beat expectations, providing a lift for those anticipating further economic strength in the months ahead.  Semiconductors ($DJUSSC, +2.42%) and internet stocks ($DJUSNS, +2.34%) powered ahead, with the former closing at its highest weekly close ever, topping August 2000's 3680 weekly close: Semiconductors had been struggling for a couple of reasons.  First, there was that August 2000 high that had traders Read More 

Trading Places with Tom Bowley

Small Caps Enter Their Best Relative Strength Month On A Roll

by Tom Bowley

Market Recap for Thursday, May 31, 2018 The roller coaster ride of 2018 has suddenly re-emerged this week.  After considerable weakness on Tuesday to open this holiday-shortened week, we saw a beautiful bounce-back rally on Wednesday.  That felt pretty good from a bullish perspective..until yesterday's renewed selling.  But the fear meter - Volatility Index ($VIX) - barely budged higher given the selloff and that is an indication of a market willing to ignore poor headline news. The bulls can take a consolation prize, even on an otherwise bearish day.  The other Read More 

Trading Places with Tom Bowley

Health Care Providers Could Cure Your Portfolio Woes

by Tom Bowley

Market Recap for Wednesday, May 30, 2018 Remember that Tuesday weakness?  Yeah, I didn't think so.  Poof!!!  It took the U.S. stock market all of one day to essentially erase the scars of that Tuesday selling.  The NASDAQ broke out of a bullish flag pattern and the small cap Russell 2000 closed at yet another all-time high.  Here's that NASDAQ breakout: From a sector perspective, the bounce back occurred in all of the areas I would've expected.  Energy (XLE, +3.03%) needed a rebound and that group got it.just as crude oil prices ($WTIC) rose off key $66 Read More 

Trading Places with Tom Bowley

Treasury Yields Tumble Amid European Political Uncertainty

by Tom Bowley

Market Recap for Tuesday, May 29, 2018 Political uncertainties in Italy and Spain rattled global markets on Tuesday, leaving the Dow Jones with a loss of nearly 400 points on the session.  There was a clear flight to safety, underscored by a massive 16 basis point drop in the 10 year treasury yield ($TNX) as it fell to 2.77%.  That precipitous drop caused significant selling in financial stocks (XLF, -3.34%), although there was plenty of collateral damage as well.  Basic materials (XLB, -1.73%) and industrials (XLI, -1.60%) both absorbed plenty of pain.  One day after Read More 

Trading Places with Tom Bowley

NASDAQ 100 Subscribes To NFLX And INTC Breakouts

by Tom Bowley

Market Recap for Friday, May 25, 2018 The NASDAQ 100 ($NDX) led the action on Friday and last week, thanks in large part to Netflix (NFLX) and a couple of chipmakers - Intel Corp (INTC) and Micron Technology (MU).  NFLX surged to an all-time high earlier in the week, easily clearing overhead price resistance, and INTC followed suit by doing the same on Friday.  MU is on the verge of such a breakout, gaining 33% in the past month alone, and nearing a $62 close, its highest since 2000: The NDX was the only major index to finish in positive territory on Friday Read More 

Trading Places with Tom Bowley

Retail Says We're Going Higher.....Much Higher

by Tom Bowley

Market Recap for Thursday, May 24, 2018 The U.S. stock market will be closed on Monday in observance of Memorial Day.  Thanks to all of the veterans, current and past, for their service to our country.  :-) Wall Street traded much lower in the opening 90 minutes, then spent the remainder of the day trying to lessen the bearish blow.  The Dow Jones was down close to 300 points just prior to 11:00am EST.  But a steady march higher enabled the Dow to erase 75% of those earlier losses and finish the day down just 75 points.  The Russell 2000, displaying relative Read More 

Trading Places with Tom Bowley

Software, Internet Stocks Bounce Off 20 Day EMAs, Lead Technology Rally

by Tom Bowley

Market Recap for Wednesday, May 23, 2018 Technology (XLK, +0.74%) rallied on Wednesday to move back near two month highs and creep closer to its all-time high close.  Both software ($DJUSSW) and internet stocks ($DJUSNS) performed well to lead the rally: The green arrows highlight the rising 20 day EMAs that are currently holding as key support.  That's bullish action during uptrends and should continue to be respected in an advance. Utilities (XLU, +0.91%) were the best performing sector on Wednesday as the 10 year treasury yield ($TNX) fell 5 basis Read More 

Trading Places with Tom Bowley

Here's A Seasonal Winner For June And July

by Tom Bowley

Market Recap for Tuesday, May 22, 2018 After early morning strength, Wall Street sellers returned and took their toll on many areas of the market, but most notably energy (XLE, -1.33%) and industrials (XLI, -1.23%).  Heavy construction ($DJUSHV) was a key casualty in the industrials after trying to reverse its recent bearish technical picture: Trendline resistance has been difficult to clear since the early-February selling took its toll technically on this group.  The increase in volume and bearish red-filled candle really put an exclamation point on this resistance Read More 

Trading Places with Tom Bowley

Aerospace, Transports Lead Surge In Industrials

by Tom Bowley

Market Recap for Monday, May 21, 2018 Until recently, the industrials (XLI, +1.51%) had been lagging its aggressive sector counterparts rather badly.  That has definitely changed in May and we now have all key sectors with buy signals.  Relative weakness remains in the defensive healthcare (XLV, +0.10%), consumer staples (XLP, +0.42%) and utilities (XLU, +0.51%) sectors, but that's exactly what we should expect to see during bull markets.  They'll participate, but they'll likely underperform.  Of these three laggards, I would like to see better performance from Read More 

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