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

FAANG Stocks Slammed, NASDAQ Plummets

by Tom Bowley

Market Recap for Tuesday, March 27, 2018 I've discussed since early February the difficulty in trading a market with an elevated Volatility Index ($VIX).  While returns can be awesome when you make great calls, the opposite is true when your timing is less than perfect.  Here's how the NASDAQ has performed the past four trading sessions with a VIX in the 20s: Thursday, March 22:  -178.61 (-2.43%) Friday, March 23:  -174.01 (-2.43%) Monday, March 26:  +227.88 (+3.26%) Tuesday, March 27:  -211.74 (-2.93%) Would you Read More 

Trading Places with Tom Bowley

Technology And Financials Bounce Back Strongly, U.S. Equities Surge

by Tom Bowley

Market Recap for Monday, March 26, 2018 It was an impressive rally on Wall Street on Monday.  All nine sectors advanced at least 1%.  The four aggressive sectors - technology (XLK, +3.80%), financials (XLF, +3.24%), consumer discretionary (XLY, +2.95%) and industrials (XLI, +2.42%) - were the clear leaders on the rally and this underscores the continuing strength of this bull market.  Yes, we've seen scary periods of selling, but market participants are not running for safety during rallies.  They continue to chase after the highest risk areas of the market.  This Read More 

Trading Places with Tom Bowley

Very Weak Financials Drive Dow Jones To Lowest Close in 2018

by Tom Bowley

Market Recap for Friday, March 23, 2018 All of our major indices tumbled on Friday, but none are struggling quite the same as the Dow Jones, which fell another 425 points on Friday to close at its lowest level since November 2017.  There are likely three reasons for this relative underperformance.  The first likely stems from a potential trade war.  The Dow Jones is made up of 30 of the world's largest companies and these companies do business throughout the world.  A trade war that pits China against the U.S. or one that develops into the U.S. against the world would Read More 

Trading Places with Tom Bowley

Trade War Fears Send U.S. Stocks Reeling

by Tom Bowley

Market Recap for Thursday, March 22, 2018 Let me start today's article by saying that the stock market loathes uncertainty.  Traders love boring small gains day after day with subtle, anticipated pullbacks to key moving averages or short-term price support levels.  You can always tell when the stock market is in a good mood because nothing upsets it.  Bad news is routinely ignored, the Volatility Index ($VIX) hovers near single digits, and bears wonder why bad economic reports, geopolitical concerns or warnings from market leaders have relatively no impact on Read More 

Trading Places with Tom Bowley

Fed Raises Quarter Point, Energy Soars

by Tom Bowley

Market Recap for Wednesday, March 21, 2018 It was a volatile session on Wednesday, particularly after 2pm EST when the FOMC policy statement was released.  In Fed Chairman Jerome Powell's first meeting as Fed Chief, the Fed raised the benchmark funds rate a quarter point from 1.50% to 1.75%.  It was the sixth time rates have been raised since December 2015.  The funds rate is very closely tied to consumer interest rates.  The Fed also raised its economic forecast, saying that "the economic outlook has strengthened in recent months", new language from previous Read More 

Trading Places with Tom Bowley

I'm Betting On The Gambling Stocks This Spring

by Tom Bowley

Market Recap for Tuesday, March 20, 2018 There weren't huge gains on Tuesday, but given how poorly Monday went, I'd say yesterday was a very solid day.  On Monday, we saw the Volatility Index ($VIX) spike more than 20% back above 19 as fear ramped up.  The Dow Jones lost 335 points.  The more aggressive NASDAQ Composite lost 137 points (-1.84%) in what had to be considered its worst day since it closed down 275 points on February 8th to close at its 2018 low.  On February 9th, we saw the NASDAQ tumble another 147 points intraday before reversing and closing in positive Read More 

Trading Places with Tom Bowley

Facebook Shares Crater Amid Controversy; Leads Another Big Selloff

by Tom Bowley

Market Recap for Monday, March 19, 2018 Ok, let's start with the obvious.  It was an ugly day for U.S. equities.  The Dow Jones, S&P 500, NASDAQ and Russell 2000 fell 1.35%, 1.42%, 1.84% and 0.98%, respectively.  The Volatility Index ($VIX), which had been declining steadily to its intraday low of 13.31 on Friday, March 9th, suddenly began to surge.  The VIX finished 20% higher yesterday, closing at 19.02.  While this should have everyone's radar at high alert, there was a silver lining if you're in the bullish camp.  The VIX left a "long tail" to the Read More 

Trading Places with Tom Bowley

Energy And Utilities Fuel Dow Jones Rise

by Tom Bowley

Market Recap for Friday, March 16, 2018 There was an industry-wide rally in energy stocks (XLE, +0.89%) on Friday and utilities (XLU, +0.88%) also performed well.  The latter looks much better technically, however, as it has broken above its 50 day SMA.  There's still much work to do and clearing price resistance will be Job 1: The two blue circles highlight the bullish PPO centerline crossover and the approaching golden cross where the shorter-term moving average (20 day) crosses above the longer-term moving average (50 day).  These are positive developments, but Read More 

Trading Places with Tom Bowley

Several Technical Signs Pointing To A Surge In The US Dollar

by Tom Bowley

Market Recap for Thursday, March 15, 2018 It was just another day of bifurcated action on Wall Street.  But this time it featured a strengthening Dow Jones. The Dow gained 0.47%, while the S&P 500, NASDAQ and Russell 2000 fell 0.08%, 0.20% and 0.49%, respectively.  From a sector perspective, it was a mixed bag as industrials (XLI, +0.29%), technology (XLK, +0.06%) and financials (XLF, +0.03%) were the only winners, while the day's big loser was materials (XLB, -1.31%).  Specialty chemicals ($DJUSCX) has really struggled since failing to make a short-term price breakout Read More 

Trading Places with Tom Bowley

The Dollar's January Bottom Is Spooking Stocks In This Major Index

by Tom Bowley

Market Recap for Wednesday, March 14, 2018 The U.S. stock market continued its bifurcated ways on Wednesday.  While all of our major indices declined, it was not across-the-board selling.  The Dow Jones (-1.00%) saw the brunt of the selling, while the NASDAQ Composite (-0.19%) outperformed by a mile again.  A theme began two months ago and it's accelerating.  Money is rotating away from the large cap behemoths found on the Dow Jones and gravitating to the tech-laden NASDAQ.  Here's a visualization: There have been a number Read More 

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