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

Bond Market Issues Major Warning

by Tom Bowley

Market Recap for Thursday, January 31, 2019 Wall Street surged again on Thursday, buoyed by additional strong earnings reports and surprisingly strong forecasts by a couple of influential names.  Facebook (FB, +10.82%) and General Electric (GE, +11.65%) were two of the leaders on the S&P 500.  It's somewhat ironic as both had been blamed for dismal performance in 2018.  On Thursday, however, all was forgiven and forgotten as these two helped the S&P 500 and NASDAQ to post 0.86% and 1.37% gains, respectively.  The Russell 2000 chipped in 0.84%.  Only Read More 

Trading Places with Tom Bowley

Consumer Stocks Are Painting A Bullish Picture

by Tom Bowley

Market Recap for Wednesday, January 30, 2019 Wall Street had much to digest yesterday.  There was fresh jobs data as the January ADP employment report was released.  The news was much better than anticipated.  There was the Apple (AAPL) earnings report from Tuesday evening.  While the numbers reported were mostly in-line with AAPL's early January warning, there appeared to be a collective sigh of relief that AAPL didn't drop another bomb.  (AAPL did indicate next quarter's revenue was likely to be in the lower end of the prior range provided.)  AAPL Read More 

Trading Places with Tom Bowley

FAANG Stocks Weak, Drag Down Influential NASDAQ 100

by Tom Bowley

Market Recap for Tuesday, January 29, 2019 It was a bifurcated and trying day on Wall Street.  Bifurcation isn't necessarily a bad thing as some indices will simply outperform others on certain days and short-term trends in that regard can mostly be ignored.  But one problem throughout this cyclical bear market is that the more aggressive NASDAQ 100 ($NDX) has been lagging the benchmark S&P 500 and it's been rather consistent.  Generally, when the NDX lags, the overall market is not performing very well.  Here's a look at the past decade: Read More 

Trading Places with Tom Bowley

Wall Street Averts Meltdown Despite CAT/NVDA Warnings

by Tom Bowley

Market Recap for Monday, January 28, 2019 It seemed like the bears let a perfect opportunity slip right through their fingers yesterday.  Caterpillar (CAT, -9.13%) reported their latest quarterly earnings before the bell and they weren't pretty.  Despite beating revenue estimates, CAT posted EPS well below estimates ($1.78 vs $2.98) and then warned about 2019 because of China concerns.  If that wasn't enough, NVIDIA Corp. (NVDA, -13.82%) warned just before the opening bell, saying its quarterly revenues would be just $2.2 billion, well below the $2.7 billion that Wall Read More 

Trading Places with Tom Bowley

Stocks Finish The Week On A Positive Note, But Overhead Resistance Remains

by Tom Bowley

Market Recap for Friday, January 25, 2019 Our major indices rallied strongly on Friday, with 9 of 11 sectors rising to support the move.  Only two defensive sectors - utilities (XLU, -1.37%) and consumer staples (XLP, -0.40%) failed to participate in the advance.  Leading the charge was materials (XLB, +1.90%) as a weak U.S. dollar ($USD, -0.86%) encouraged traders to buy the technically-improving materials group.  Gold ($GOLD, +1.43%) benefited from the dollar's weakness and that relationship is examined in more detail in the Sector/Industry Watch section below Read More 

Trading Places with Tom Bowley

Technology Leads Stocks Higher, But Faces Trendline Resistance Test

by Tom Bowley

Market Recap for Thursday, January 24, 2019 Semiconductor stocks ($DJUSSC, +5.10%) soared after a few key earnings reports in the group came in better than expected.  Xilinx (XLNX, +18.44%) and Lam Research (LRCX, +15.70%) were two of the best performers, but their results lifted much of the industry group, including Applied Materials (AMAT, +10.23%).  The strength in the DJUSSC helped provide a lift to technology (XLK, +0.84%) as a whole.  The XLK is now facing overhead trendline resistance and price resistance from 65.50-66.50: The volume hasn't Read More 

Trading Places with Tom Bowley

Volatile Session Ends Mostly In Bullish Fashion

by Tom Bowley

Note I'm traveling today so my article will be abbreviated. Market Recap for Wednesday, January 23, 2019 It was a fairly volatile session on Wednesday as U.S. indices opened higher, but quickly fell fairly deep into negative territory before rallying in the afternoon.  Only the small cap Russell 2000 (-0.22%) failed to close in positive fashion.  The Dow Jones was the clear leader throughout the session, gaining 0.70%, as a few notable components saw strong reactions after earnings were released.  International Business Machines (IBM, +8.46%), United Technologies (UTX Read More 

Trading Places with Tom Bowley

Bearish Island Reversal Forms With Tuesday's Selling

by Tom Bowley

Market Recap for Tuesday, January 22, 2019 Energy (XLE, -2.18%), communication services (XLC, -2.07%) and industrials (XLI, -2.07%) all fell more than 2% on Tuesday as Wall Street had its first significant retreat since the day that Apple (AAPL) warned.  Late day buying cut into losses as the Dow Jones rebounded from an intraday drop of 462 points to finish down slightly more than 300 points, or 1.22%.  Selling was heavier on the NASDAQ, where losses totaled 137 points, or 1.91%. Several headlines were blamed for the drop, including slowing growth in China, the IMF lowering its Read More 

Trading Places with Tom Bowley

Transportation Stocks Hold A Big Clue This Week

by Tom Bowley

Market Recap for Friday, January 18, 2019 Continuing anticipation of a trade deal with China appeared to fuel very solid stock market action on Friday as all of our major indices pushed higher, as did all 11 sectors.  The Dow Jones and S&P 500 led the charge, gaining 1.38% and 1.32%, respectively.  Energy (XLE, +2.03%) led on a relative basis as crude oil ($WTIC) neared $54 per barrel, its highest close in two months - prior to the December swoon.  Oil equipment & services ($DJUSOS, +5.14%) exploded to the upside, buoyed in part by a very positive reaction to Read More 

Trading Places with Tom Bowley

The Ultimate Test For The Bears Is Here

by Tom Bowley

Market Recap for Thursday, January 17, 2019 Word that the U.S. would ease Chinese tariffs as negotiations wear on helped to reduce stock market stress and resulted in an intraday surge in U.S. equity prices on Thursday afternoon.  Quick profit taking followed, but strength resumed into the close as our major indices all finished higher, led by the Russell 2000's 0.86% advance.  All 11 sectors finished higher in a broad-based rally that was led by materials (XLB, +1.76%) and industrials (XLI, +1.71%).  The former's rally came right on time as I had posted the following chart Read More 

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