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

Negative Divergences Stymie Advance

by Tom Bowley

Market Recap for Thursday, February 7, 2019 The bears have been waiting for a day like yesterday, which featured a bit of impulsive selling and an accelerating Volatility Index ($VIX).  Unfortunately, the bulls may have already inflicted too much damage upon the bears for them to recover fully.  I view this nothing more than an overbought pullback for now.  I have a short-term "line in the sand" for the S&P 500.  Until that is lost, I'm viewing this as normal profit taking. All of our major indices declined, led by the NASDAQ's 1.18% drop.  Energy Read More 

Trading Places with Tom Bowley

Restaurants Remain A Fan Favorite

by Tom Bowley

Market Recap for Wednesday, February 6, 2019 All of our major indices closed lower on Wednesday and we haven't seen that very often in 2019.  The losses were minimal and traders continued to have an appetite for the riskier sectors, so it certainly wasn't a huge win for the bears.  But down is down and a downtrend cannot begin without a start.  I wouldn't worry too much from a bullish perspective so long as price action remains above the rising 20 day EMA.  If we move below, then I'd at least become more cautious: The rally off the December Read More 

Trading Places with Tom Bowley

Evaluating Energy And Renewable Energy

by Tom Bowley

Market Recap for Tuesday, February 5, 2019 Tuesday was Groundhog Day for those that have seen the movie starring Bill Murray.  It was a repeat of what we've seen throughout earnings season.  We heard a somewhat disappointing outlook from a market leader, in this case Alphabet (GOOGL, +0.92%), several companies lowering their forecasts for FY19, and yet the U.S. stock market was incredibly resilient, gaining across all of our major indices.  Leadership once again came in the form of the NASDAQ, which rose 0.74%.  The Dow Jones, S&P 500 and Russell 2000 all Read More 

Trading Places with Tom Bowley

Looking At The Dollar And Defense

by Tom Bowley

Market Recap for Monday, February 4, 2019 Technology (XLK, +1.60%) led another broad-based rally on Wall Street Monday as all of our major indices closed higher.  There was particularly strong action on the aggressive NASDAQ and Russell 2000 as they gained 1.15% and 1.03%, respectively.  9 0f 11 sectors finished higher with only healthcare (XLV, -0.29%) and materials (XLB, -0.17%) failing to participate. Computer hardware ($DJUSCR, +2.60%) rallied on the back of Apple, Inc. (AAPL, +2.84%), which continued its post-earnings surge.  Roku (ROKU, +4.91%) and Mercury Systems Read More 

Trading Places with Tom Bowley

Amazon Slammed But Fails To Trigger Panicked Selling

by Tom Bowley

Market Recap for Friday, February 1, 2019 I'm sure I wasn't the only one thinking that the market was doomed on Friday after Amazon.com (AMZN, -5.38%) disappointed traders with its outlook during Thursday's after hours trading.  After all, AMZN is a Wall Street darling and if they're seeing weakness ahead, so too should many others.  But U.S. indices showed resiliency and grit more associated with a bull market than a bear market.  Three of our four key indices ended the day higher as the Dow Jones, S&P 500 and Russell 2000 posted gains of +0.26%, +0.09%, and +0.18% Read More 

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 

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