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

Retail Says We're Going Higher.....Much Higher

by Tom Bowley

Market Recap for Thursday, May 24, 2018 The U.S. stock market will be closed on Monday in observance of Memorial Day.  Thanks to all of the veterans, current and past, for their service to our country.  :-) Wall Street traded much lower in the opening 90 minutes, then spent the remainder of the day trying to lessen the bearish blow.  The Dow Jones was down close to 300 points just prior to 11:00am EST.  But a steady march higher enabled the Dow to erase 75% of those earlier losses and finish the day down just 75 points.  The Russell 2000, displaying relative Read More 

Trading Places with Tom Bowley

Software, Internet Stocks Bounce Off 20 Day EMAs, Lead Technology Rally

by Tom Bowley

Market Recap for Wednesday, May 23, 2018 Technology (XLK, +0.74%) rallied on Wednesday to move back near two month highs and creep closer to its all-time high close.  Both software ($DJUSSW) and internet stocks ($DJUSNS) performed well to lead the rally: The green arrows highlight the rising 20 day EMAs that are currently holding as key support.  That's bullish action during uptrends and should continue to be respected in an advance. Utilities (XLU, +0.91%) were the best performing sector on Wednesday as the 10 year treasury yield ($TNX) fell 5 basis Read More 

Trading Places with Tom Bowley

Here's A Seasonal Winner For June And July

by Tom Bowley

Market Recap for Tuesday, May 22, 2018 After early morning strength, Wall Street sellers returned and took their toll on many areas of the market, but most notably energy (XLE, -1.33%) and industrials (XLI, -1.23%).  Heavy construction ($DJUSHV) was a key casualty in the industrials after trying to reverse its recent bearish technical picture: Trendline resistance has been difficult to clear since the early-February selling took its toll technically on this group.  The increase in volume and bearish red-filled candle really put an exclamation point on this resistance Read More 

Trading Places with Tom Bowley

Aerospace, Transports Lead Surge In Industrials

by Tom Bowley

Market Recap for Monday, May 21, 2018 Until recently, the industrials (XLI, +1.51%) had been lagging its aggressive sector counterparts rather badly.  That has definitely changed in May and we now have all key sectors with buy signals.  Relative weakness remains in the defensive healthcare (XLV, +0.10%), consumer staples (XLP, +0.42%) and utilities (XLU, +0.51%) sectors, but that's exactly what we should expect to see during bull markets.  They'll participate, but they'll likely underperform.  Of these three laggards, I would like to see better performance from Read More 

Trading Places with Tom Bowley

Monday Trade Setup - Garmin Fills Gap, Looks To Head Higher

by Tom Bowley

Market Recap for Friday, May 18, 2018 Last week ended with plenty of bifurcation.  Strength was once again seen across the small cap universe as the S&P 600 SmallCap Index and Russell 2000 both finished the week at all-time high closing levels.  The larger cap Dow Jones and S&P 500, meanwhile, languished all week and closed well off of their respective all-time highs set back in January.  From a sector perspective, action was mixed last week as well with four sectors higher, four sectors lower, and one unchanged. On Friday, it was the industrials Read More 

Trading Places with Tom Bowley

Energy Has All Guns Blazing, Leads Bifurcated Market

by Tom Bowley

Market Recap for Thursday, May 17, 2018 There's a new sheriff on Wall Street and it's the energy ETF (XLE, +1.51%).  Its SCTR has soared to 97.1 with the second best SCTR (XLK - technology ETF) at 86.8.  The distance between the two is widening.  The XLE not only led the action yesterday, but it is also the sector leader over the past week, month, three months and six months.  Only three sectors have gained ground over the past three months and they're as follows: Energy (XLE):  +16.38% Technology (XLK):  +3.27% Read More 

Trading Places with Tom Bowley

Correlation Suggests This Financial Group Is About To Explode Higher, Get In Early

by Tom Bowley

Market Recap for Wednesday, May 16, 2018 We saw another advance on Wall Street on Wednesday as key indices continue to clear important hurdles.  Perhaps the most significant yesterday was the Russell 2000, which ended its bullish continuation pattern as expected - with a bullish breakout to the upside: It's never a bad thing to see the more aggressive small caps leading the market to the upside and having a pattern measurement only aids the bulls in terms of targets down the road.  From top to bottom in this ascending triangle pattern, it measures 175 points.  Add that to Read More 

Trading Places with Tom Bowley

The Four Decade-Long Downtrend In Interest Rates Is Over And This Is What It Means

by Tom Bowley

Reminder If you like my daily Trading Places blog articles and you haven't done so already, please subscribe below.  It's a great feature that StockCharts.com provides for all of the blogs here, and it's FREE and easy.  Simply scroll to the bottom of this article (or any other blog author's article), type in your email address and hit the "Subscribe" button.  You'll then receive my articles each day the stock market is open as soon as they're published!  Thanks for your support! Market Recap for Tuesday, May 15, 2018 Read More 

Trading Places with Tom Bowley

Transports Fail Again At Resistance, Watch Them Closely

by Tom Bowley

Market Recap for Monday, May 14, 2018 It was a day of bifurcated action, although the Dow Jones did manage to close higher for the 8th consecutive trading session, the longest such streak in 2018.  One look at sector performance, however, illustrates the mixed action.  Four sectors finished higher while five finished lower.  On the positive side, energy (XLE, +0.69%) and healthcare (XLV, +0.66%) aided the bulls attempt to keep the rally alive.  Weakness was primarily felt in utilities (XLU, -0.38%) as the 10 year treasury yield ($TNX) rose and finished near 3.0% Read More 

Trading Places with Tom Bowley

Biotechs Break To Six Week High As Healthcare Advances; Biotechs Poised To Lead Again

by Tom Bowley

Market Recap for Friday, May 11, 2018 Considering the gains that the bulls enjoyed earlier in the week, Friday's end-of-day numbers weren't too shabby.  Only the NASDAQ (-2.09 points) lost ground.  Over the six prior sessions, the NASDAQ moved from its intraday low on May 3rd of 6991 to Friday's close at 7403.  That's a huge rally so losing 2 points doesn't seem like a particularly big deal. The Dow Jones was the relative leader on Friday, posting a gain of 92 points to close at 24831, its highest close in nearly two months.  Technically, however, let's keep an eye Read More 

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