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

30% Gain From Here Over Next Year Possible? This Chart Says YES

by Tom Bowley

Market Recap for Wednesday, November 14, 2018 In a rare twist, communication services (XLC, +0.49%) was the only sector to gain ground yesterday.  The group has underperformed the S&P 500 badly since its July relative high with Facebook's (FB) quarterly earnings report on July 25th after the close the primary culprit.  But, at least temporarily, the sector received a boost - an oversold bounce.  Here's a 4 month chart to show just how bad it's been for the XLC: Since that gap lower in late-July, it's been mostly downhill for communication services Read More 

Trading Places with Tom Bowley

Trade Setup - Tandem (TNDM) In Real Time

by Tom Bowley

From a trading perspective, I wanted to give you a quick idea of what I look for in a trade.  I bought Tandem Diabetes Care (TNDM) when it crossed back above 31.21 and I'll hold it unless it closes beneath 31.00 or moves intraday beneath 30.00.  Here's a quick chart: I like trading false breakdowns on stocks that recently reported quarterly results above Wall Street's expectations.  TNDM reported the following: Revenues:  46.3 mil vs. 41.8 mil EPS:  (.30) vs (.34) The recent selling on TNDM has been fairly light Read More 

Trading Places with Tom Bowley

Gold Downtrend Resuming As Is S&P 500's

by Tom Bowley

Market Recap for Tuesday, November 13, 2018 Losses weren't big on Tuesday as the Dow Jones dropped just 0.40% and was the worst performing of our major indices.  But it seemed to be more of a continuation of the recent downtrend as all key areas of the market finished at or close to their lows of the day.  For instance, the NASDAQ earlier in the session was up 118 points, or more than 1.5%, but finished the day higher by 0.01 points.  Considering that the NASDAQ had been down 370 points, or nearly 5%, in the prior three trading sessions, a bounce was definitely a Read More 

Trading Places with Tom Bowley

Semiconductors Are In A Bear Market, Follow This Trading Range

by Tom Bowley

Market Recap for Monday, November 12, 2018 Welcome back bears.  Welcome back volatility.  It was another day of steep losses on Wall Street, underscoring the likely end to what the bulls were hoping was a sustainable rally back to recent highs.  There was a major test last week for the bears as the Volatility Index ($VIX) had crept to within 16 (intraday low was 16.09).  For those keeping score, the VIX never dropped below 16 during each of the past two bear markets.  A certain level of fear is required to keep bear markets (or the potential for bear Read More 

Trading Places with Tom Bowley

Are Copper Prices Signaling S&P 500 Bear Market Like In Prior Years?

by Tom Bowley

Market Recap for Friday, November 9, 2018 There was a return of strength in defensive sectors on Friday as consumer staples (XLP, +0.58%), utilities (XLU, +0.15%) and real estate (XLRE, +0.12%) were the only sectors to finish the session in positive territory.  There was also significant relative weakness in the more aggressive NASDAQ and Russell 2000, which retreated 1.65% and 1.82%, respectively.  The relative laggards were familiar names from October - communication services (XLC, -2.05%), technology (XLK, -1.73%), materials (XLB, -1.40%) and consumer discretionary (XLY Read More 

Trading Places with Tom Bowley

S&P 500 Hesitates At Next Key Price Resistance

by Tom Bowley

Market Recap for Thursday, November 8, 2018 Well, another Fed day has come and gone.  The FOMC ended its two day meeting and left rates unchanged, as expected.  It promised, however, further gradual increases.  If you recall, the spike in the 10 year treasury yield ($TNX) to 3.25%, a 7 year high, accompanied the October dive in equity prices.  Many market pundits were blaming higher interest rates for the selling in equities.  Yet, the latest rise in U.S. stocks has been accompanied with a similar rise in the TNX to 3.23%.  Still, the Fed's discussion of Read More 

Trading Places with Tom Bowley

Very Bullish Sector Rotation Underscores Dow's 500 Point Gain

by Tom Bowley

Market Recap for Wednesday, November 7, 2018 The Dow Jones surged 545 points, or 2.13%, yesterday and that index of conglomerates was a laggard.  NASDAQ stocks exploded nearly 200 points higher, or 2.64%, to extend what's been a very impressive rally after October's massacre.  I look for several signals to suggest a correction is over (or at least has printed what I believe is a bottom), but none is more important than price action.  Downtrends typically consist of failed 20 period EMA tests and we've seen some of those in recent weeks.  But not Read More 

Trading Places with Tom Bowley

Railroads Provide Us Market Clues And Right Now They're Bullish

by Tom Bowley

Market Recap for Tuesday, November 6, 2018 All eleven sectors rose on Tuesday with materials (XLB, +1.64%) leading as the U.S. Dollar Index ($USD) closed at its lowest level in nearly two weeks.  All of our major indices had similar gains, from 0.55% to 0.68%, as U.S. voters headed to the polling booths.  Mylan (MYL, +16.02%), Symantec (SYMC, +12.50%) and Mosaic (MOS, +10.71%) were the three top S&P 500 performers, all surging after releasing their latest quarterly earnings reports.  MOS led a very strong specialty chemicals group ($DJUSCX, +2.06%) that has now rallied Read More 

Trading Places with Tom Bowley

Bulls Avert Near-Term Breakdown But Caution Prevails

by Tom Bowley

Market Recap for Monday, November 5, 2018 Bifurcated market action dominated on Monday.  The Dow Jones and S&P 500 gapped higher and traded higher throughout nearly all of the session.  The NASDAQ and Russell 2000, on the other hand, struggled throughout most of the day with an afternoon rally failing to clear the flat line by day's end.  Weakness was once again felt in key sectors - communication services (XLC, -0.41%) and technology (XLK, -0.10%) - although both rallied well off their intraday lows.  The leaders included energy (XLE, +1.67%) and real estate Read More 

Trading Places with Tom Bowley

Transports Are A Big Deal And Here's What The Chart Is Saying

by Tom Bowley

Market Recap for Friday, November 2, 2018 Traders were anxiously awaiting jobs data last week.  First, it was a solid ADP employment report on Wednesday morning that helped to lift U.S. equities.  But the biggie was on Friday and we all held our collective breath as the numbers were released during pre-market action.  It was a very sizable beat vs. consensus estimates and the bond market responded.  The 10 year treasury yield ($TNX) surged 7 basis points on Friday and now appears to have printed what could be a neckline in a bullish inverse head & shoulders Read More 

Trading Places with Tom Bowley

Apple (AAPL) Disappoints, But Nonfarm Payrolls Soar Past Estimates

by Tom Bowley

Market Recap for Thursday, November 1, 2018 The U.S. Dollar Index ($USD) absorbed its largest decline in several months and that finally triggered buying in the materials sector (XLB, +2.81%).  Gold ($GOLD) was a big beneficiary for sure as it climbed nearly 2%, one of its largest advances of 2018, to close at $1238 per ounce, its highest close since mid-July.  I'm not a big fan of gold as I believe the USD will move higher again later in 2018 and into 2019 and that will provide very stiff headwinds for GOLD, which normally travels opposite the dollar.  Nonetheless, at Read More 

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