Trading Places with Tom Bowley

Three Things To Take Away From Wednesday's Bizarre Market Action

by Tom Bowley

Market Recap for Wednesday, November 29, 2017 One quick glance at the S&P 500's meager 1 point loss on Wednesday and you might assume that Wall Street meandered through another one of its boring days.  But a deeper look will tell you that yesterday was anything but boring!  Technology (XLK, -2.21%) was hammered and suffered its worst one day loss since June 9th and its second worst day of 2017.  What happened?  Well, first and foremost, a negative divergence had printed on XLK's recent breakout.  That tells us that risk is heightened so you shouldn't be Read More 

Trading Places with Tom Bowley

Equities Explode Higher, Led By Financials, Industrials And Small Caps

by Tom Bowley

Market Recap for Tuesday, November 28, 2017 It was party day on Wall Street.  The bullish environment accelerated into a much faster gear as all nine sectors advanced and the small cap Russell 2000 soared 23 points, or 1.53%, to a fresh new record with its most bullish historical month - December - still awaiting.  It wasn't just small caps though.  The Dow Jones, S&P 500 and NASDAQ gained 1.09%, 0.98% and 0.49%, respectively, as each added yet another record to its ledger. Technology (XLK, +0.33%) was the laggard and we may need to get used to it being an Read More 

Trading Places with Tom Bowley

Defense Industry Stocks Look Poised To Benefit From Market Rotation

by Tom Bowley

Market Recap for Monday, November 27, 2017 We saw bifurcated action in the major indices on Monday as the Dow Jones tacked on another 23 points after nearly closing above 23600 for the first time ever.  Instead, the bulls had to settle for an all-time intraday high of 23638.92.  The other indices also saw afternoon weakness, but in their case, it resulted in losses by the close.  There was no panic, however, as the S&P 500 lost just one point and did manage to close above 2600 for a second consecutive session. Utilities (XLU, +0.43%) led the advance after Read More 

Trading Places with Tom Bowley

Abbreviated Holiday Session Results In More Records

by Tom Bowley

Market Recap for Friday, November 24, 2017 Wall Street was only open for half a day on Friday, but that didn't stop the bulls' momentum as all the major indices closed at fresh all-time highs.  Amazon.com (AMZN) and a host of semiconductor stocks led the advance as the NASDAQ slightly outperformed the other indices.  Technology (XLK, +0.56%) and materials (XLB, +0.51%) were the best performing sectors, while consumer staples (-0.07%) and financials (XLF, -0.04%) lagged. The 10 year treasury yield ($TNX) bounced back after it fell to challenge the lower uptrend line Read More 

Trading Places with Tom Bowley

The Superfecta: All Four Major Indices Print All-Time Record Highs

by Tom Bowley

Market Recap for Tuesday, November 21, 2017 I am traveling for the Thanksgiving Day holiday, so today's article will be brief.  I hope everyone has a very Happy Thanksgiving!  Enjoy your family and friends and please be safe.  :-) It was a very bullish day on Wall Street yesterday.  Not only did we see all four of our major indices climb to touch all-time highs on an intraday basis, but they also closed there.  In addition, all nine sectors advanced on the session.  That is typically a sign of new money driving prices higher, a bullish development Read More 

Trading Places with Tom Bowley

Financials And Industrials Lead As Slowing Momentum Issues Subside

by Tom Bowley

Market Recap for Monday, November 20, 2017 It had been awhile since financials (XLF, +0.46%) and industrials (XLI, +0.45%) were the top two performing sectors during a market session, but that's exactly what we saw on Monday.  Welcome back!  Both the XLF and XLI had serious momentum issues to deal with on their daily charts as they made their recent price highs.  But profit taking and market rotation took care of that and both of these groups now appear poised to rejoin the bull market party. XLF: We do need to respect a potential short-term Read More 

Trading Places with Tom Bowley

Friday: The Tale Of Two Markets

by Tom Bowley

Market Recap for Friday, November 17, 2017 It was an interesting day on Friday.  While most of our major indices struggled and finished in negative territory with the Dow Jones, S&P 500 and NASDAQ falling 0.43%, 0.26% and 0.15%, respectively, the Russell 2000 continued its torrid advance of late, rising another 0.40%.  The Russell 2000 had lagged the other major indices quite significantly from early October through last Tuesday, but it reversed just as it approached key price, moving average and Fibonacci support at 1450 on Wednesday.  It then embarked on a three day Read More 

Trading Places with Tom Bowley

Russell 2000 Soars After Nearing Initial Fibonacci Retracement Level

by Tom Bowley

Market Recap for Thursday, November 16, 2017 U.S. indices spiked sharply higher on Thursday's open in contrast to many recent days where the bulls have found themselves underwater in early action, trying to reclaim control of the action throughout the balance of the session.  Yesterday, there wasn't a battle.  The bulls won decidedly and with one day of solid gains, the benchmark S&P 500 is within earshot of 2600 and another all-time high.  But the big winner among the major indices was the Russell 2000 ($RUT, +1.56%), whose swift march higher reversed several days' Read More 

Trading Places with Tom Bowley

Selling Grips Wall Street, Key Moving Average Lost

by Tom Bowley

Market Recap for Wednesday, November 15, 2017 Eight of nine sectors lost ground on Wednesday and while that, along with a couple major indices closing beneath their respective 20 day EMAs, might be cause for concern, I actually thought much of the action was bullish.  First and foremost, the tech-heavy NASDAQ was able to rally enough in the afternoon to end with a kick save, printing a reversing candle in the process: The candle that formed yesterday on the NASDAQ is a doji, a short-term reversing candle that suggests indecision on the part of traders.  Many times, following a Read More 

Trading Places with Tom Bowley

Technology Weakening, But How Much Selling Might We Expect?

by Tom Bowley

Market Recap for Tuesday, November 14, 2017 For the third time in the last four days, we saw U.S. equities gap lower, only to reverse intraday to close near their highs of the session.  It's still resulted in losses for the day, but it also shows the bull market resiliency that the bears are facing as they try to grab control of the near-term action.  We're seeing fairly significant red futures once again this morning so the bulls will once again attempt to reclaim support by day's end. All of our key indices finished lower on the session with the S&P 500 Read More 

Trading Places with Tom Bowley

Industrials Are Teaching Us How To Evaluate Risk....If We'll Listen

by Tom Bowley

Reminder If you enjoy my blog, be sure to subscribe at the bottom of this article!  Just type in your email address and click on the green "Notify Me!" button.  My articles will then be sent to your email immediately upon publishing!  It's 100% free and you won't be spammed.  Thanks and best of luck with your trading! Market Recap for Monday, November 13, 2017 Monday marked more rotation from the overbought and momentum-challenged aggressive sectors to the more defensive-oriented groups.  The current short-term rotation as the benchmark S&P 500 consolidates Read More 

Trading Places with Tom Bowley

Consumer Staples Finish Off Strong Week, Hold Trendline Support

by Tom Bowley

Market Recap for Friday, November 10, 2017 Generally speaking, I'm not a big fan of defensive areas leading the market to the upside.  But I'll make an exception for last week.  Consumer staples (XLP, +1.02%) was not only the clear leader on Friday, but it's weekly gain of 2.15% also easily vaulted the XLP into a leadership role for the week.  Why was the XLP's strength last week so important?  Well, first take a look at the weekly chart: Trend lines can be drawn in many different ways to support an argument so I do take them relatively lightly.  There Read More 

Trading Places with Tom Bowley

Early Losses Result In Successful Moving Average Tests; Overbought Conditions Unwinding

by Tom Bowley

Market Recap for Thursday, November 9, 2017 Energy (XLE, +0.30%) returned to the top of the leaderboard and this is what's likely to irritate the bears in the future.  We now have another sector that's technical capable to take on new money as money rotates elsewhere.  It's the beauty of a bull market.  Wide participation means a lot of choices.  The problems begin when breakdowns occur in several areas and money can't find a new technical home.  Consumer discretionary (XLY, +0.15%) also had a solid day considering the overall market weakness as its recent Read More 

Trading Places with Tom Bowley

Futures Down Sharply; The 9th Calendar Day Of Month Strikes Again

by Tom Bowley

Market Recap for Wednesday, November 8, 2017 It was another day of records for most of our major indices with the Dow Jones, S&P 500 and NASDAQ all closing at their highest levels ever.  Consumer staples (XLP, +1.09%) led the advance and I feature this group in the Sector/Industry Watch section below, showing how it's recovered nicely following a recent breakdown in price action. Technology (XLK, +0.55%) also had a very nice session with mobile telecommunications ($DJUSWC, +1.10%) among the strongest industry groups on Wednesday.  The DJUSWC really needed a day like this Read More 

Trading Places with Tom Bowley

Russell 2000 Takes Biggest Hit In Three Months; Watch This Support Level

by Tom Bowley

Market Recap for Tuesday, November 7, 2017 Small cap stocks felt a slight tremor on Tuesday as the Russell 2000 ($RUT, -1.26%) suffered its worst day in nearly three months.  While losses never feel good, I believe the RUT is in a bullish advance similar to the one it enjoyed in 2013 with weekly price momentum accelerating after a 50 week SMA test in August.  That would indicate that the rising 20 week EMA should provide excellent support: We saw lesser losses on the NASDAQ and especially the benchmark S&P 500, where a final 30 minute rally yesterday almost Read More 

Trading Places with Tom Bowley

Energy Explodes Higher As Crude Oil Tops $57 Per Barrel; Time For Small Caps Again?

by Tom Bowley

Market Recap for Monday, November 6, 2017 Energy (XLE, +2.29%) shares made a huge advance on Monday as money rotated to this once-forgotten sector in a very big way.  Bull markets thrive on broad participation in rallies and the XLE had been one sector not participating.  That is no longer the case as all technical signs point to higher prices in this space.  Here's the latest look at the XLE: If you had any doubts about the staying power of the September rally in XLE, they should be gone now.  Price action and volume trends do not lie and serious accumulation is Read More 

Trading Places with Tom Bowley

Familiar Names Pace Healthcare, Technology; Major Indices Rise Again

by Tom Bowley

Special Notes First, please join me and Erin Swenlin for MarketWatchers LIVE every day from Noon EST to 1:30pm EST.  We discuss key technical developments that you need to be aware of as you manage your wealth.  Previously, MarketWatchers LIVE aired just three days a week, but beginning today, you can join us five days a week!   The link is www.stockcharts.com/webinars.  Then click on the green "Watch Now" button and join us!  Again, we'll get started at Noon EST and cover my and Erin's Monday trade setups, a 10 in 10 segment at 12:50pm EST where I'll Read More 

Trading Places with Tom Bowley

Facebook Falters After Earnings, NASDAQ Now Looks To Apple's Strong Report

by Tom Bowley

Market Recap for Thursday, November 2, 2017 Financials (XLF, +0.94%) and industrials (XLI, +0.57%) led a Dow Jones rally on Thursday.  Goldman Sachs (GS) paced the financial stocks in the Dow with more than a 1% gain, while Boeing (BA) was the best performing Dow component and the obvious leader in industrials.  It was not really a broad-based rally on Thursday, however, as the NASDAQ actually lost ground despite an early push higher in Facebook (FB) following its better-than-expected quarterly earnings report.  It was likely a "buy on rumor, sell on news" type of even for Read More 

Trading Places with Tom Bowley

Transportation Services Is A Live Case Study In Rotation After A Negative Divergence

by Tom Bowley

Market Recap for Wednesday, November 1, 2017 U.S. stocks jumped higher out of the gates at Wednesday's open, but was unable to hang onto those gains - especially on the NASDAQ.  We did see a bit of strength in the final couple hours, though, after the FOMC policy announcement stated that interest rates would remain unchanged for now with a potential rate hike in December.  Traders expect that rate hike so there was a bit of relief perhaps that no action was taken currently. Crude oil prices ($WTIC) have been on the move higher of late and yesterday's intraday high of Read More 

Trading Places with Tom Bowley

Crude Oil Threatening Break Above $55 Per Barrel; A Look At Transports

by Tom Bowley

Market Recap for Tuesday, October 31, 2017 Don't look now, but crude oil prices ($WTIC) are on the verge of moving to a 2 1/2 year high.  Energy (XLE, +0.33%) has shown life since ending its downtrend that began back in December 2016.  Rising prices in crude would help to "fuel" the space in the months ahead so keep an eye out for that breakout: Should crude clear $55 per barrel, I'd expect the recent XLE breakout and uptrend to continue. Consumer staples (XLP, +0.84%) finally performed well on Tuesday, but there's much more technical work to do in this Read More