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

Home Construction Breaks Out As S&P 500 Consolidates

by Tom Bowley

Market Recap for Friday, June 14, 2019 The big news on Friday was Broadcom's (AVGO, -5.57%) quarterly results and outlook, neither of which were particularly good.  AVGO fell short of its revenue estimate and offered a very broad warning regarding upcoming revenues in the semiconductor industry ($DJUSSC, -2.43%).  The DJUSSC lost its rising 20 day EMA, a bearish development, and now traders have their eyes set on the price support established by the late-May low: The weakness in semiconductors weighed on technology (XLK, -0.87%) as that sector was the worst Read More 

Trading Places with Tom Bowley

Transports Vs. Utilities Ratio Supports The Bearish Argument

by Tom Bowley

Market Recap for Thursday, June 13, 2019 A nice rally to end the session lifted all of our major indices into the close.  The Russell 2000 led on a relative basis, gaining 1.05%.  The NASDAQ, S&P 500 and Dow Jones climbed 0.57%, 0.41%, and 0.39%, respectively.  Walt Disney (DIS, +4.44%) provided individual stock leadership as it was easily the best performing Dow Jones component.  It closed at an all-time high, although it still has a bit of technical work left to clear its open from April 29th at 142.19: Morgan Stanley raised the price target on Read More 

Trading Places with Tom Bowley

Big Drop In Crude Oil Prices Crush Energy Shares.....Again

by Tom Bowley

Market Recap for Wednesday, June 12, 2019 We ended Wednesday with bifurcated action as the small cap Russell 2000 ($RUT, +0.05%) was able to eke out a tiny gain.  The other major indices, however, were not so fortunate with the NASDAQ ($COMPQ, -0.38%) falling a bit more than the S&P 500 ($SPX, -0.20%) and Dow Jones ($INDU, -0.17%).  Sectors were mixed as well, with the obvious laggards being energy (XLE, -1.41%) and financials (XLF, -0.99%).  Banks ($DJUSBK, -1.33%) struggled with a small drop in the 10 year treasury yield ($TNX) and once again failed at stubborn price Read More 

Trading Places with Tom Bowley

Big Reversal May Mark Short-Term Top

by Tom Bowley

Market Recap for Tuesday, June 11, 2019 It wasn't a big down day, but it certainly felt like it.  It started off so promising.  Right out of the gate, the NASDAQ surged more than 1% in the opening minutes.  However, by day's end, it closed in negative territory and printed a rather ominous big red candle.  I might not think too much about it ordinarily, but the reversal did occur at neckline resistance in an inverse head & shoulders continuation pattern: The projection above is the bullish case for the current consolidation period.  It would Read More 

Trading Places with Tom Bowley

Mergers And Averting Mexico Tariffs Bolsters Stocks

by Tom Bowley

Market Recap for Monday, June 10, 2019 U.S. equities were buoyed by resolution to the 5% Mexico trade tariff announced recently by President Trump to encourage Mexico to slow the pace of illegal immigrants entering the U.S.  That tariff was set to take effect yesterday, but never materialized.  In addition, there were two mega-mergers that sparked buying interest as well.  First, Raytheon (RTN, +0.69%) and United Technologies (UTX, -3.13%) announced a deal combining these two defense ($DJUSDN, -0.72%) and aerospace ($DJUSAS, -0.74%) giants.  Then, in Read More 

Trading Places with Tom Bowley

3 Monday Setups To Start The Week

by Tom Bowley

Market Recap for Friday, June 7, 2019 U.S. indices capped off a very solid week with more gains on Friday.  The more aggressive NASDAQ trounced the other key indices, climbing 1.66%.  The S&P 500, Dow Jones, and Russell 2000 added 1.05%, 1.02%, and 0.72%, respectively.  9 of 11 sectors participated to the upside with three key groups - technology (XLK, +1.86%), communication services (XLC, +1.62%), and consumer discretionary (XLY, +1.45%) - leading the charge.  Computer hardware ($DJUSCR, +2.31%) is strengthening again after bouncing off both February price Read More 

Trading Places with Tom Bowley

Advanced Micro Devices (AMD) Loves June, But What's Going On With Transports?

by Tom Bowley

Market Recap for Thursday, June 6, 2019 It was another solid day on Wall Street as the recent bounce continued.  Unfortunately, it was also another day where investors/traders were seeking some safety.  It's like ordering pizza, but adding a diet coke to watch your weight.  The Dow Jones and S&P 500 led the rally, jumping 0.71% and 0.61%, respectively.   However, the NASDAQ gained just 0.53% and the Russell 2000 actually lost ground, falling 0.22%. All 11 sectors were higher, led by energy (XLE, +1.85%) and materials (XLB, +1.19%).  Technology Read More 

Trading Places with Tom Bowley

Defensive Sectors Power S&P 500 Back Above 20 Day EMA

by Tom Bowley

Market Recap for Wednesday, June 5, 2019 The good news is that the U.S. stock market advanced on Wednesday and that both the Dow Jones (+0.82%) and S&P 500 (+0.82%) were able to clear their respective declining 20 day EMAs.  Another piece of good news is that 10 of the 11 sectors advanced with only energy (XLE, -1.11%) down for the day as crude oil ($WTIC, -3.37%) took another big hit: The $50-$52 per barrel range appears to be significant short-term support and we are bouncing off this area in early morning trade.  Failure to hold this level, however, would likely lead to Read More 

Trading Places with Tom Bowley

An Industry Group To Buy And One To Avoid

by Tom Bowley

Market Recap for Tuesday, June 4, 2019 A big turnaround occurred on Tuesday as many beaten-down stocks and industries from the May drubbing led a market rally.  The NASDAQ and Russell 2000 led the rally with gains of 2.65% and 2.62%, respectively, but it was a wide-participation advance as the S&P 500 and Dow Jones climbed 2.14% and 2.06%, respectively.  Hard-hit industry groups like gambling ($DJUSCA, +6.08%), banks ($DJUSBK, +3.62%), transportation services ($DJUSTS, +5.32%), and semiconductors ($DJUSSC, +4.24%) led a massive rally that enabled the S&P 500 to hold Read More 

Trading Places with Tom Bowley

Late Afternoon Buying Does Little For NASDAQ Shares

by Tom Bowley

Market Recap for Monday, June 3, 2019 I've had lots of positives for software stocks the past few years, but yesterday we saw a rare short-term breakdown that will test the mettle of traders.  The Dow Jones U.S. Software Index ($DJUSSW, -3.17%) joined internet stocks ($DJUSNS, -6.23%) to lead a stampede of selling in the high octane growth stocks found on the NASDAQ 100 ($NDX, -2.10%) and that's always a bit unnerving as many of those stocks rely on big earnings growth.  As more and more discussion revolves around trade concerns and a possible global recession, traders tend to Read More 

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