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

One Day Ahead Of 4 HUGE Bank Earnings Reports, Let's Delve Into The Group

by Tom Bowley

Market Recap for Wednesday, April 11, 2018 Well, the S&P 500 tried to clear its 20 day EMA again.  And it failed.again.  That marks the 5th consecutive day of failed 20 day EMA breakouts.  Given that futures are higher this morning, this benchmark index appears headed for a 6th consecutive test.  Here's the current view: There's been a lot of news lately regarding trade threats, missile threats, upcoming earnings, volatility, etc.  But what I'm focusing on are the technicals.  I believe the 9 year bull market remains quite sustainable so a break Read More 

Trading Places with Tom Bowley

Energy Finally Breaks Out, Fuels S&P 500 Advance

by Tom Bowley

Market Recap for Tuesday, April 10, 2018 It seems like forever, but the energy sector ETF (XLE, +3.31%) finally did it - it closed above 69.00!  Can we please say goodbye to the 66-69 trading range?  I didn't realize this until yesterday, but the XLE's SCTR is now at 78.6, trailing only technology's (XLK, +2.46%) and consumer discretionary's (XLY, +1.21%) SCTR scores of 86.2 and 85.8, respectively.  Based on the following chart, we are likely to see further relative strength in the XLE: If you pull up a long-term weekly chart and use the correlation indicator Read More 

Trading Places with Tom Bowley

Here's A Beaten Down Industry Group Where I'd Look For A 6-7% Rebound

by Tom Bowley

Market Recap for Monday, April 9, 2018 Once again, Monday was the tale of two markets.  The first half of the day was quite bullish, but it was all for naught as sellers stampeded the bulls in the afternoon session.  Our major indices finished with across-the-board gains so if you only tuned in at the close, you'd have been quite happy.  But the entirety of the trading session was not nearly so bullish as the Dow Jones finished nearly 400 points off its intraday high.  The S&P 500 traded within 2 points of its 20 day EMA before dropping 1.5% over just the final two Read More 

Trading Places with Tom Bowley

Despite Friday's Selloff, My Most Reliable Signal Remains Bullish

by Tom Bowley

Market Recap for Friday, April 6, 2018 All nine sectors fell on Friday as the Dow Jones tumbled 572 points amid more threats of China tariffs by the White House.  China has promised further retaliation if the U.S. remains adamant about imposing tariffs on China imports.  This rhetoric back and forth has escalated the "volatility war" that began in early February. As you might expect, the defensive utilities (XLU, -0.79%) and consumer staples (XLP, -1.02%) sectors were the least impacted by Friday's selloff, while industrials (XLI, -2.77%) and technology (XLK, -2.45%) absorbed Read More 

Trading Places with Tom Bowley

I Cannot Own Commodities And Here's Why

by Tom Bowley

Market Recap for Thursday, April 5, 2018 The latest recovery attempt continued into Thursday of this week, but weak futures this morning will provide yet one more obstacle for the bulls to overcome.  I'll talk more about that in the Pre-Market Action section below. In the meantime, eight of nine sectors advanced Thursday with healthcare (XLV, -0.07%) the only sector to defect.  Biotechnology stocks ($DJUSBT) were the primary culprit of weakness in healthcare as this aggressive industry group fell 1.21% on the session.  It disguised strength in other parts of healthcare Read More 

Trading Places with Tom Bowley

Consumer Discretionary Leads And Remains On A Very Bullish Track

by Tom Bowley

Market Recap for Wednesday, April 4, 2018 Welcome back consumer stocks!  One day certainly doesn't make a fresh new trend, but it's been awhile since consumer stocks led a rally.  Consumer discretionary (XLY, +1.84%) and consumer staples (XLP, +1.56%) were atop the sector leaderboard on Wednesday as our major indices rallied throughout the session after another trade war-related scare at the open.  China announced new tariffs against U.S. products and futures tumbled several hundred points as a result.  We threatened yet another short-term breakdown, but this time Read More 

Trading Places with Tom Bowley

A Volatility War Has Been Declared

by Tom Bowley

Special Note I typically post a blog article every day that the U.S. stock market is open.  If you'd like to receive my blog articles as soon as they're published, you can subscribe (for FREE) by scrolling to the bottom of this article, typing your email address and clicking the "Subscribe" button. And if you ever have any comments on my articles, feel free to send me an email at "tomb@stockcharts.com". Thank you! Market Recap for Tuesday, April 3, 2018 Everyone is talking about a trade war and how that might impact the U.S. markets going forward Read More 

Trading Places with Tom Bowley

U.S. Stocks Slide As S&P 500 Prints Double Bottom

by Tom Bowley

Market Recap for Monday, April 2, 2018 It was a big down day on Wall Street with eight of nine sectors down 2% or more.  Only the defensive utilities (XLU, -0.77%) were able to minimize its losses, with the more aggressive consumer discretionary (XLY, -2.82%) and technology (XLK, -2.38%) hit much harder.  The Dow Jones tested its low from a week earlier, while the benchmark S&P 500 managed to close at 2581, the same low it reached in early February: This certainly doesn't guarantee we'll see higher prices near-term, but it is an area where the S&P 500 Read More 

Trading Places with Tom Bowley

Energy Bounces Off Of Rock Solid Support......Again

by Tom Bowley

Market Recap for Thursday, March 29, 2018 The energy ETF (XLE, +2.11%) surged off of key price support at 66.00 and there's reason to believe that this rally could last a bit longer.  Crude oil prices ($WTIC) outperformed the XLE during the month of March and we could see the XLE play a bit of catch up in April.  Here's the chart: The red arrows highlight the difficulty that the XLE has had negotiating the 69-70 price resistance zone.  A close above 69.50 would be bullish as not only would it clear price resistance, but it would also clear its 50 day SMA for the first Read More 

Trading Places with Tom Bowley

Wednesday's Reversal In NASDAQ 100 Volatility Gauge Could Signal End Of Selling

by Tom Bowley

Market Recap for Wednesday, March 28, 2018 The U.S. stock market settled down on Wednesday and that could be very good news for the bulls.  High volatility ($VIX) has stunned equity traders the past two months after a 15 month period of little volatility.  But on Wednesday, the VIX fell more than 8% from its intraday high as the Dow Jones traded in a fairly narrow 300 point range throughout much of the day.  I say "fairly narrow" range from a relative perspective as the Dow Jones has had much larger 500-750 point intraday ranges in recent sessions. Read More 

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