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

Travel & Tourism Stocks Seeking A Boost From Booking Holdings

by Tom Bowley

Market Recap for Tuesday, February 26, 2019 In what has become a rarity in 2019, all of our major indices finished in negative territory on Tuesday, but it wasn't without a fight.  There was early selling, but stocks rallied throughout much of the session to forge to intraday gains before a final selling binge landed equities back in negative territory by the close: The tops from the last two days could be the beginning of a downtrend line.  Also, the slope of this downtrend line can be attached to Tuesday's early morning low to establish what might become a down channel Read More 

Trading Places with Tom Bowley

Monday's Reversal Sets U.S. Equities Up For Selling

by Tom Bowley

Market Recap for Monday, February 25, 2019 If you looked at the final numbers yesterday, you'd probably think it was just another day in this two-month long advance, but it wasn't just another day.  It was a reversal off a gap higher with the market initially reacting to positive fundamental news.  It looks to me like market makers finally took a short position, selling their shares throughout the day.  We're also very overbought, so I'd expect to see further selling this week. Most U.S. indices finished with gains on Monday, led by the NASDAQ's 0.36% rise Read More 

Trading Places with Tom Bowley

Software And Telecom Lead Technology March Higher

by Tom Bowley

Market Recap for Friday, February 22, 2019 Software stocks ($DJUSSW, +1.44%) continued their impressive dash higher, eclipsing their October high to enter all-time high territory.  It was a significant breakout as the DJUSSW has been a relative leader for a long, long time.  Check this out: Perhaps the most impressive piece of this chart is that software never lost its relative strength during the Q4 market debacle.  Normally recession fears would drive the high growth area of the market much, much lower on both an absolute and relative basis.  While software's Read More 

Trading Places with Tom Bowley

Discretionary Stocks Poised For A Bullish Explosion

by Tom Bowley

Market Recap for Thursday, February 21, 2019 U.S. stocks stalled on Thursday, but a minimum of sideways consolidation this week was to be expected given 60 minute negative divergences that I discussed earlier in the week.  Before we talk about yesterday's action, check out how the negative divergence has played out rather well to the rising 50 hour SMA and note that the hourly PPO has nearly "reset" back to its centerline (pink arrows): In addition to testing its 50 hour SMA, the SPX also pulled back almost exactly to trendline support.  The slope of this Read More 

Trading Places with Tom Bowley

A Commodity Bottom? There's Not One In Sight

by Tom Bowley

Market Recap for Tuesday, February 19, 2019 We saw a bit of intraday back and forth action on Wednesday with the same result - another Wall Street gain.  I'm really surprised we haven't seen more selling this week.  We're at major price resistance levels on our major indices, there was incredible strength into options expiration Friday (usually a recipe for disaster the following week), 60 minute negative divergences are in play, and the bond market still isn't buying the idea of a stronger or strengthening economy ahead.  Yet here I am again, discussing the strength Read More 

Trading Places with Tom Bowley

U.S. Equities Approach Key Resistance, Expect A Battle

by Tom Bowley

Market Recap for Tuesday, February 19, 2019 Materials (XLB, +0.62%) and utilities (XLU, +0.59%) led another Wall Street rally on Tuesday, although our major indices did see a bit of selling into the close.  The XLB and XLU benefited from a falling dollar ($USD, -0.40%) and 10 year treasury yield ($TNX, down 2 basis points to 2.65%), respectively.  On the consumer front, Walmart, Inc (WMT, +2.21%) delivered a solid quarterly earnings report to help lead consumer stocks higher.  Both consumer staples (XLP, +0.52%) and consumer discretionary (XLY, +0.41%) outperformed our Read More 

Trading Places with Tom Bowley

T-Mobile (TMUS) Breaks Out, Dialed-In For Spring Ka-Ching!

by Tom Bowley

Market Recap for Friday, February 15, 2019 Friday produced very solid gains as the U.S. government averted a second shutdown as a funding resolution was passed.  Also, there was word that US-China trade talks were progressing and any positive developments there are typically well-received by global markets.  In an odd twist, the largest companies and the smallest companies provided leadership as the Dow Jones and Russell 2000 showed the biggest gains at 1.74% and 1.56%, respectively.  The S&P 500 and NASDAQ had nice days as well, gaining 1.09% and 0.61% Read More 

Trading Places with Tom Bowley

Turn Off CNBC And Turn On StockCharts TV

by Tom Bowley

Market Recap for Thursday, February 14, 2019 Real estate (XLRE, +0.38%) and communications services (XLC, +0.37%) were the leaders yesterday as Wall Street staged a rally attempt after dealing with an early blow - a very weak December retail sales report.  There's one thing everyone should keep in mind though - the stock market looks ahead and not in the rear view mirror and that was on full display yesterday.  The headline news created a stir at the open, but buyers returned quickly as the U.S. stock market has been sending a signal that the second half of 2019 will be better Read More 

Trading Places with Tom Bowley

For Now, Small Is Better

by Tom Bowley

Market Recap for Wednesday, February 13, 2019 The stock market is beginning to exhibit a bit of the borishness that accompanies bull market advances.  The Volatility Index ($VIX) remaining below 16 is confirming the reduced level of fear.  There were certainly swings intraday yesterday, but the panicked, impulsive-type selling appears to have dissipated, which is bad news for the bears.  At the close yesterday, all of our major indices finished fractionally higher, led by the Dow Jones' rise of 0.46%. The headline news continues to be mostly mixed earnings Read More 

Trading Places with Tom Bowley

Finding Stocks To Achieve Your Goals

by Tom Bowley

Market Recap for Tuesday, February 12, 2019 Another government shutdown was averted and the U.S. stock market reacted quite favorably, as you might expect, with all of our major indices surging higher.  Our major indices had quite a day: Dow Jones:  +1.49% S&P 500:  +1.29% NASDAQ:  +1.46% Russell 2000:  +1.27% Materials (XLB, +2.24%) led all sectors, buoyed at least in part by a decline in the UUP (dollar proxy) for the first time in 9 days.  Our aggressive sectors mostly led the way higher, though, as there was a "risk on" theme that permeated Read More 

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