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

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 

Trading Places with Tom Bowley

Don't Gamble On This Industry In June

by Tom Bowley

Market Recap for Friday, May 31, 2019 The U.S. stock market was in no mood for any negative surprises, yet it received one when President Trump slapped a 5% tariff on all products from Mexico (effective June 10th) to try to control illegal immigration.  While it may seem as a minor tariff, President Trump promised to increase those tariffs periodically.  After all the back and forth over trade with China, the new tariff on Mexican products was the last thing the stock market wanted to see.  As a result, the selling escalated with the S&P 500 falling 37 points, or 1.32% Read More 

Trading Places with Tom Bowley

The Charts Do Not Say Recession Is Likely....At Least Not Yet

by Tom Bowley

Market Recap for Thursday, May 30, 2019 Dollar General (DG, +7.16%) and Dollar Tree (DLTR, +3.14%) provided a lift to consumer discretionary stocks (XLY, +0.65%) after releasing their latest quarterly results, but PVH Corp (PVH, -14.87%) tumbled, further compromising an already-weak clothing & accessories group ($DJUSCF, -1.52%).  And that sums up Thursday's yo-yo session, though the bulls did pull out a minor victory by the close.  Most of our major indices finished in positive territory with the small cap Russell 2000 once again the laggard, losing 0.30%. Read More 

Trading Places with Tom Bowley

Trade War Negativity Hasn't Impacted This Industry Group

by Tom Bowley

Market Recap for Wednesday, May 29, 2019 Trade and growth concerns, along with slumping crude oil prices ($WTIC), were mostly responsible for another bad day on Wall Street.  There was across-the-board selling as all of our major indices fell from 0.69% (S&P 500) to 0.94% (Russell 2000).  It was the same in terms of sector performance as only materials (XLB, +0.02%) managed to close with a gain.  Of the other 10 sectors, financials (XLF, -0.19%) showed relative strength despite another drop in the 10 year treasury yield ($TNX).  The TNX did recover after Read More 

Trading Places with Tom Bowley

Software's Been A Leader, Watch This Key Support Level

by Tom Bowley

Market Recap for Tuesday, May 28, 2019 U.S. stocks jumped at the open, but then ran into sellers throughout the session.  After gapping down at the open on Thursday, it's been difficult for the S&P 500 to clear the low 2840s and yesterday's selling began as soon as we touched that level: There was clearly a stream of afternoon sellers with the closing result another test of important price support at 2800: The daily PPO is below centerline support and accelerating low, volume is increasing, and the RSI is now at 37.  The RSI typically holds 40 support Read More 

Trading Places with Tom Bowley

Consumer Staples Has Been A Leader In May, But Don't Expect It In June

by Tom Bowley

Market Recap for Friday, May 24, 2019 Before I summarize Friday's numbers, let me first say that the S&P 500 closed near a two-month low while the Volatility Index ($VIX) has been falling as well.  I find this to be a very bullish development as nervousness is exiting even though the headlines continue to chirp about US-China trade: The drop in the S&P 500 with a PPO now in negative territory would seem to be bearish on the surface - and perhaps it'll turn out to be just that.  However, the falling VIX tells me a completely different story.  Less nervousness Read More 

Trading Places with Tom Bowley

Crude Oil Plunges, Energy Crushed

by Tom Bowley

Market Recap for Thursday, May 23, 2019 Energy (XLE, -3.35%) has been a relative laggard for the past 8 years, mostly due to a rising U.S. Dollar Index ($USD).  The group took another big blow yesterday as crude oil prices ($WTIC, -5.71%) tumbled and had its worst day of 2019.  It raises the possibility of another swoon back to test the lower $40s per barrel: While many headlines blamed the trade war for the big drop yesterday - and it most definitely played a hand in it - the bigger story was the breakdown in crude oil prices.  Technically, the drop below both the 20 Read More 

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