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

This Is How I Use The RSI

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Thursday, August 16th If you've noticed, I generally include the RSI on nearly all my charts, but I rarely discuss it.  From a momentum oscillator perspective, I much prefer the MACD and PPO.  I used to plot the MACD on all of my charts but, to be quite honest Read More 

Trading Places with Tom Bowley

Combining The PPO And 20 Day EMA For Short-Term Trading

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Wednesday, August 15th I trade companies where revenue and EPS estimates have been surpassed in their most recent quarterly reports, but I don't just buy at any price.  I want to maximize my reward to risk upon entry so unless I can catch a breakout in its very early Read More 

Trading Places with Tom Bowley

Beneficiaries Of A Strengthening Dollar

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Tuesday, August 14th Yesterday, I wrote about the recent breakout in the U.S. Dollar Index ($USD).  I'd like to take that a step further today.  The USD rose sharply off the January through March lows and with it was a surge in small cap stocks vs. their larger cap Read More 

Trading Places with Tom Bowley

Dollar Breakout Signals Resurgence In Small Cap Relative Strength

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Monday, August 13th I had been awaiting a dollar breakout and it's happened.  The longer-term uptrend held and the inverse head & shoulders pattern has been confirmed with the breakout.  The measurement of this pattern is approximately 102 to challenge the high Read More 

Trading Places with Tom Bowley

Banks Showing Renewed Strength; ChartCon FINAL CALL

by Tom Bowley

ChartCon Starts Today! If you haven't already, I'd highly recommend that you join me and many of my StockCharts.com colleagues from around the globe for ChartCon 2018.  We did our rehearsals and walkthroughs yesterday and my great friend Greg Schnell kicks off the conference in less than an hour, discussing high potential setups.  He'll be followed by many of the world's great technical analysts including John Murphy, Dr. Alexander Elder, Martin Pring and so many others.  We're incredibly excited to get things started today and we'd all love for you to join us Read More 

Trading Places with Tom Bowley

When Financials Lead On A Relative Basis, This Usually Happens

by Tom Bowley

Market Recap for Wednesday, August 8, 2018 Wall Street ended Wednesday's action in a bifurcated state as the NASDAQ withstood a final 20 minute selloff to finish with a slight 4 point gain.  The other major indices finished lower, but just fractionally so.  In sector performance, slight gains were felt in technology (XLK, +0.27%) and financials (XLF, +0.25%).  It was important to see the latter group strong as the XLF broke above 28.25 resistance earlier this week after several failed attempts over the past several months.  A continuation of strength above that 28.25 Read More 

Trading Places with Tom Bowley

Energy And Industrials Lead Wall Street Rally, But Here's The Bullish News

by Tom Bowley

Market Recap for Tuesday, August 7, 2018 It was another nice rally on Wall Street, led by energy (XLE, +0.74%) and industrials (XLI, +0.71%).  Since the beginning of July, we've seen renewed strength in larger cap stocks.  Industials, along with financials (XLF, +0.46%) have been the biggest beneficiaries of that theme change.  The XLI broke out to a multi-month high last week and the XLF is now doing the same thing: Transports ($TRAN) are certainly aiding the industrials sector as they've cleared June resistance and looking to the all-time high, set back in January: Read More 

Trading Places with Tom Bowley

Small Caps Ready To Flourish With Dollar Surge? Watch This Signal

by Tom Bowley

Market Recap for Monday, August 6, 2018 The Russell 2000 and NASDAQ paced a day of strength on Wall Street as they gained 0.65% and 0.61%, respectively.  The S&P 500 and Dow Jones enjoyed smaller gains as money rotated back towards more aggressive areas.  The 10 year treasury yield bounced at near-term yield support at 2.925%, a positive for equities: Two weeks ago, the TNX broke back up through 20 day EMA resistance and its PPO turned positive, crossing centerline resistance.  When that occurs, I look to the rising 20 day EMA to provide support - and it did Read More 

Trading Places with Tom Bowley

Friday Action Bifurcated As Dollar Awaiting Bullish Breakout

by Tom Bowley

Market Recap for Friday, August 3, 2018 The stock market has clearly turned more defensive over the past 2-3 months and Friday was another perfect example of that.  The more aggressive small cap Russell 2000 was the laggard, dropping 0.52%.  Meanwhile, the NASDAQ produced only a minor 0.12% gain.  The Dow Jones and S&P 500, however, were higher by 0.54% and 0.46%, respectively. Consumer staples (XLP, +1.17%) and utilities (XLU, +1.12%) were the sector leaders.  The XLP has been notably strong this summer and its chart reflects that: The XLP Read More 

Trading Places with Tom Bowley

Apple Tops $1 Trillion Market Cap, Leads Technology Higher

by Tom Bowley

Special Note I will be traveling to Seattle this weekend for ChartCon 2018.  My schedule the next two weeks is likely to be quite different and sporadic, perhaps posting articles during the trading day or possibly even after the market closes.  If you've grown accustomed to my articles being posted just before the market opens, that very well could change for the next two weeks.  If you're not already a subscriber, you might want to consider it now.  One benefit of subscribing is that my articles will be sent to the email address provided the moment my article is Read More 

Trading Places with Tom Bowley

Apple Soars, Trade Fears Send Futures Plummeting

by Tom Bowley

Market Recap for Wednesday, August 1, 2018 Wednesday was a day of bifurcated action with Apple (AAPL) leading technology (XLK, +0.90%) and the NASDAQ higher, while the Dow Jones, S&P 500, Russell 2000 and most sectors finished lower.  It was a case of one behemoth, nearly $1 trillion company attempting to carry the rest of the stock market on its shoulder.  AAPL finished the trading day with a market cap of $990 billion.  While the attempt to lift the entire market was failing at around 2pm EST, our major indices did rally a bit after the FOMC announced they Read More 

Trading Places with Tom Bowley

Apple Delivers With The Fed On Deck

by Tom Bowley

Market Recap for Tuesday, July 31, 2018 It was a solid day on Wall Street to close out July.  The small cap Russell 2000, weak on a relative basis during July, regained its leadership role, spiking more than 1% and doubling the performance of its other major index counterparts.  Industrials (XLI, +2.21%) were quite strong as commercial vehicles & trucks ($DJUSHR, +3.28%) led a robust advance in every industry group in the sector.  Diversified industrials ($DJUSID) and industrial machinery ($DJUSFE) both gained nearly 3% as the XLI closed at its highest level since Read More 

Trading Places with Tom Bowley

This Part Of Energy Completes Right Side Of Cup, Very Bullish

by Tom Bowley

Market Recap for Monday, July 30, 2018 Only three sectors were able to finish in positive territory on Monday as bears permeated Wall Street.  Two of the three - financials (XLF, +0.07%) and healthcare (XLV, +0.06%) - barely managed to eke out gains.  The only real strength was found in energy (XLE, +0.82%) as crude oil prices ($WTIC) closed above $70 per barrel for the first time in two weeks.  Leading energy higher were exploration & production stocks ($DJUSOS), which are highlighted below in the Sector/Industry Watch section. For a third Read More 

Trading Places with Tom Bowley

Twitter Provides Internet Bears A Double Dose Of Adrenaline

by Tom Bowley

Market Recap for Friday, July 27, 2018 A second wave of internet troubles came in the form of Twitter Inc (TWTR) after the recently-soaring internet giant disappointed traders with its latest quarterly results.  It was an UGLY reaction by Wall Street as TWTR fell nearly 21% exactly one day after Facebook's (FB) 19% haircut.  These two earnings reports were responsible for a big reversal in internet stocks last week: The good news, I suppose, is that the DJUSNS had been on a tear and in the midst of a solid up channel.  It had room for a decline, but after the selling Read More 

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