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

Energy Remains A Drag And Seasonality Suggests It Could Get Worse

by Tom Bowley

Market Recap for Thursday, May 2, 2019 Energy (XLE, -1.74%) took yet another tumble on Thursday, which dampened an otherwise decent recovery from intraday morning lows in our major indices.  The Dow Jones was the big loser, dropping 0.46%, while the small cap Russell 2000 index rebounded nicely, finishing the session with a 0.40% gain.  The S&P 500 and NASDAQ fell 0.21% and 0.16%, respectively. Healthcare (XLV, +0.43%) aided the afternoon recovery as all five industry groups in this sector ended higher, led by medical supplies ($DJUSMS, +1.73%) and medical equipment Read More 

Trading Places with Tom Bowley

Banks Vs. REITs Provide Bullish Clue

by Tom Bowley

Market Recap for Wednesday, May 1, 2019 Fed Chair Jerome Powell ruined the bull market party on Wednesday afternoon, effectively suggesting that the Fed would not be lowering rates in response to low inflation data of late.  The bond market has been screaming for a rate cut, not a hike, but at least for now, the Fed is having none of it.  Powell said the lower inflation data was "transitory", not permanent.  We've already seen the Fed stick to its guns once, in late 2018 as they continued to discuss multiple rate hikes in 2019 as the 10 year treasury yield ($TNX) was Read More 

Trading Places with Tom Bowley

Go Away In May? More Like "Time To Fly Is Mid-July"

by Tom Bowley

Market Recap for Tuesday, April 30, 2019 Alphabet (GOOGL, -7.50%) set the stage for a rough day on the NASDAQ (-0.81%) as the internet giant posted quarterly results that didn't impress Wall Street.  The small cap Russell 2000 lost 0.45%, losing ground vs. the benchmark S&P 500 for only the second time in the last six trading sessions.  While all of our major indices dropped at the open, both the Dow Jones and S&P 500 rebounded to finish with gains (+0.15% and +0.10%, respectively) by the close. The rebound was likely tied to a series of Read More 

Trading Places with Tom Bowley

Watch This Transportation Ratio Very, Very Closely

by Tom Bowley

Market Recap for Monday, April 29, 2019 A bull market is comprised of a number of things, but two are wide participation and rotation of strength.  We've been seeing both.  Yesterday, it was financials (XLF, +1.01%) and communication services (XLC, +0.91%) that led the S&P 500 and NASDAQ to new record closing highs.  Banks ($DJUSBK, +1.30%) were solid and technically broke out above a key area of congestion (450-460) on their chart: The good news here is we finally saw the DJUSBK close above 460.  It's been a long time coming.  But, as with Read More 

Trading Places with Tom Bowley

Ford Lifts Autos, Healthcare Advances, And Consumer Stocks Bullish

by Tom Bowley

Market Recap for Friday, April 26, 2019 When was the last time I suggested Ford Motor Co (F, +10.74%) was a catalyst for any bull market advance?  Ummm, probably never.  But F was exactly that on Friday as much better than expected earnings lifted the stock and the automobile group ($DJUSAU, +2.42%).  The DJUSAU was the best performing industry within consumer discretionary (XLY, +0.79%) as well.  The history of relative strength among automobiles is not a good one, however: It's not easy to trust a group that's performed so abysmally vs. the S&P 500 Read More 

Trading Places with Tom Bowley

Structuring A Sound Trade And Avoiding The Relative Bear Market In Materials

by Tom Bowley

Market Recap for Thursday, April 25, 2019 Strong earnings from Microsoft (MSFT, +3.31%) and Facebook (FB, +5.85%) lifted the NASDAQ to gains on Thursday, while broader market bearishness carried the other major indices to losses.  3M Co (MMM, -12.95%) was a disaster on the Dow Jones, which lost 135 points on the session. Sector performance was bifurcated as well.  Communication services (XLC, +1.12%) and healthcare (XLV, +1.03%) were clear leaders, but industrials (XLI, -2.01%) and materials (XLB, -1.27%) were a drag on our indices.  The latter is no doubt struggling with Read More 

Trading Places with Tom Bowley

Industrials Set To Record All-Time Highs

by Tom Bowley

Note If you enjoy my daily blog articles, please subscribe (for FREE!) below.  Simply scroll to the bottom of this article, type in your email address in the space provided and click the green "Subscribe" button.  Once subscribed, my articles will be sent directly to the email address provided the moment my article is published. Thanks! Market Recap for Wednesday, April 24, 2019 Sellers in the final 20-30 minutes carried most of our major indices deeper into negative territory, although the small cap Russell 2000 showed relative strength for the second consecutive Read More 

Trading Places with Tom Bowley

NASDAQ Breaks Out, Sets New All-Time High

by Tom Bowley

Market Recap for Tuesday, April 23, 2019 The small cap Russell 2000 led our major indices higher, gaining 1.61%, but the day clearly belonged to the NASDAQ, which not only climbed 1.32%, but broke to new all-time intraday and closing highs.  The NASDAQ pierced the 8109.69 level that had been the previous closing high set on August 29, 2018.  Healthcare (XLV, +1.58%) sparked the rally, but there was wide participation.  Communication services (XLC, +1.34%), consumer discretionary (XLY, +1.20%) and technology (XLK, +1.09%) also led on a relative basis and these Read More 

Trading Places with Tom Bowley

Crude Oil Surge Sends Energy Shares Higher

by Tom Bowley

Market Recap for Monday, April 22, 2019 I'm sure you've noticed it at the pump lately.  Gas prices are rising.  Yesterday, crude oil prices ($WTIC, +2.31%) jumped to their highest level of 2019 and closed above $65 per barrel for the first time since breaking below key price support in early-November 2018.  It's been one of many themes of 2019, and if you're a fan of the correlation coefficient, then you know that higher energy prices generally coincide with higher equity prices.  Take a look: This is a 25 year look-back period.  While we've Read More 

Trading Places with Tom Bowley

An Analysis Of Financials And Why We're Going Higher

by Tom Bowley

Market Recap for Thursday, April 18, 2019 Railroads ($DJUSRR, +2.37%) were led higher by Union Pacific's (UNP, +4.36%) strong quarterly earnings report and outlook.  The DJUSRR has been a leader among industrials (XLI, +1.15%) for more than three years and that trend is easily continuing in 2019 as the group has broken out on both an absolute and relative basis: It's much easier to outperform the benchmark S&P 500 if you trade companies that belong to industry groups that are outperforming the S&P 500.  Railroads are certainly one of those industries. Read More 

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