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

You Just Need To Beware One Week In July

by Tom Bowley

Market Recap for Tuesday, June 25, 2019 Sellers returned to the stock market yesterday as the NASDAQ posted a 1.51% drop, its largest decline since June 3rd.  Volatility ($VIX, +6.68%) has been on the move higher as the market grows more nervous with the G-20 summit beginning later this week: The bold red circle shows the VIX breaking above its 10 day moving average from low levels (complacency).  Other breaks above the 10 day moving average, including the latest, occurred with the VIX in an overall downtrend.  I wouldn't pay as much attention to this sudden increase Read More 

Trading Places with Tom Bowley

Seasonality Suggests BIDU Could Be Ready To Launch

by Tom Bowley

Market Recap for Monday, June 24, 2019 The U.S. stock market waffled yesterday as the G-20 summit set to begin later this week.  We know from history that any time the headlines are littered with US-China trade, we need to be vigilant.  While there wasn't widespread selling yesterday, equities weren't able to build upon recent all-time highs either.   The Dow Jones was the lone index to end Monday's session with gains as that index of conglomerates managed to eke out an 8 point gain.  Meanwhile, the small cap Russell 2000 ($RUT, -1.26%) lagged badly once again Read More 

Trading Places with Tom Bowley

S&P 500 Flat But Healthcare Showing Relative Strength

by Tom Bowley

Market Recap for Friday, June 21, 2019 The S&P 500 ended Friday's session relatively flat, but had a very solid week as it raced to an all-time high before sellers hit on quad-witching day.  As usual, quad-witching day volume was extremely heavy.  I wouldn't read too much into that.  Given the strength of the daily PPO, I believe either the S&P 500 will continue pushing higher this week.or potentially test its rising 20 day EMA if sellers decide we've seen too much in this rally.  However, keep in mind that the stock market has a strong tendency to move Read More 

Trading Places with Tom Bowley

S&P 500 Breaks Record, Crude Oil Surges

by Tom Bowley

Market Recap for Thursday, June 20, 2019 More dovish Fed policy is already having its effects.  The anticipation of those changed policies has sent investors around the globe into U.S. treasuries, as yields have dropped precipitously since Q4 2018.  But yesterday, U.S. equities climbed aboard as the S&P 500 sailed to all-time highs as to both intraday and closing value: I don't know, but that looks like a pretty nice uptrend and a breakout to boot.  We're in a secular bull market and we're going higher. Leadership on Thursday came from energy Read More 

Trading Places with Tom Bowley

Fed Offers Traders Hope, Travel & Tourism Has Big Challenge Ahead

by Tom Bowley

Market Recap for Wednesday, June 19, 2019 Yesterday was Fed day, or Fednesday as one MarketWatchers LIVE viewer said, and U.S. equities liked what the Fed had to say.  What it had to say was essentially what most market pundits were expecting - that the word "patient" would be removed from the Fed's policy statement and that the likelihood of an upcoming rate cut would be apparent.  After the meeting, fed funds futures implied that we will see a rate cut when the Fed meets again in July. All of our major indices gained ground on Wednesday, albeit the gains were Read More 

Trading Places with Tom Bowley

Relative Strength In Two Key Sectors Says All We Need To Know

by Tom Bowley

Market Recap for Tuesday, June 18, 2019 It was a day of rallying global equities, especially in the German DAX ($DAX, +2.03%).  The DAX ($DAX) moves more in sync with U.S. equities than any other foreign equity market - in my opinion.  The long-term positive correlation between the DAX and the S&P 500 backs me up on this.  Therefore, we shouldn't ignore what the DAX did yesterday: The DAX was under pressure throughout much of 2018, especially after breaking down from a topping head & shoulders pattern.  That measurement was achieved in December Read More 

Trading Places with Tom Bowley

Autos Back On The Road To Nowhere; Tesla Loves June

by Tom Bowley

Market Recap for Monday, June 17, 2019 Facebook (FB, +4.24%) announced a platform cryptocurrency with a white paper due out today, while Netflix (NFLX, +3.21%) received positive comments from a Piper Jaffray analyst looking for solid results out next month.  That combination lifted communications services (XLC, +1.14%) to the top of the sector leaderboard, while also providing a big boost to internet stocks ($DJUSNS, +1.89%).  Real estate (XLRE, +1.09%) and energy (XLE, +0.84%) were also sector winners on the session as the Russell 2000 ($RUT, +0.67%) and NASDAQ ($COMPQ, +0.62%) Read More 

Trading Places with Tom Bowley

Home Construction Breaks Out As S&P 500 Consolidates

by Tom Bowley

Market Recap for Friday, June 14, 2019 The big news on Friday was Broadcom's (AVGO, -5.57%) quarterly results and outlook, neither of which were particularly good.  AVGO fell short of its revenue estimate and offered a very broad warning regarding upcoming revenues in the semiconductor industry ($DJUSSC, -2.43%).  The DJUSSC lost its rising 20 day EMA, a bearish development, and now traders have their eyes set on the price support established by the late-May low: The weakness in semiconductors weighed on technology (XLK, -0.87%) as that sector was the worst Read More 

Trading Places with Tom Bowley

Transports Vs. Utilities Ratio Supports The Bearish Argument

by Tom Bowley

Market Recap for Thursday, June 13, 2019 A nice rally to end the session lifted all of our major indices into the close.  The Russell 2000 led on a relative basis, gaining 1.05%.  The NASDAQ, S&P 500 and Dow Jones climbed 0.57%, 0.41%, and 0.39%, respectively.  Walt Disney (DIS, +4.44%) provided individual stock leadership as it was easily the best performing Dow Jones component.  It closed at an all-time high, although it still has a bit of technical work left to clear its open from April 29th at 142.19: Morgan Stanley raised the price target on Read More 

Trading Places with Tom Bowley

Big Drop In Crude Oil Prices Crush Energy Shares.....Again

by Tom Bowley

Market Recap for Wednesday, June 12, 2019 We ended Wednesday with bifurcated action as the small cap Russell 2000 ($RUT, +0.05%) was able to eke out a tiny gain.  The other major indices, however, were not so fortunate with the NASDAQ ($COMPQ, -0.38%) falling a bit more than the S&P 500 ($SPX, -0.20%) and Dow Jones ($INDU, -0.17%).  Sectors were mixed as well, with the obvious laggards being energy (XLE, -1.41%) and financials (XLF, -0.99%).  Banks ($DJUSBK, -1.33%) struggled with a small drop in the 10 year treasury yield ($TNX) and once again failed at stubborn price Read More 

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