Trading Places with Tom Bowley Blog Archives

December 2017

U.S. Equities Post Strongest Day In December

Market Recap for Thursday, December 7, 2017

December began with a huge intraday selloff and recovery and since then, it's been mostly down action.  Yesterday was the first day this month that the bulls could celebrate and feel good.  Eight of nine sectors advanced with many of the aggressive sectors leading the charge.  So while the S&P 500's modest gain of 0.29% might not have felt great, knowing that industrials (XLI, +0.92%) and technology (XLK, +0.62%) were among the leading sectors certainly helped to ease the recent pain.  Industrials, after printing a 60 minute negative divergence, saw a MACD centerline reset and a 50 hour SMA test prior to resuming its uptrend - a bullish short-term development:

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Recent Selling In Technology Improving Trading Opportunities

Market Recap for Wednesday, December 6, 2017

It was a bifurcated day on Wall Street with the NASDAQ being lifted by an improving technology sector (XLK, +0.64), while a very weak energy group (XLE, -1.30%) put the brakes on both the Dow Jones and S&P 500.  Consumer discretionary (XLY, -0.65%) continued its recent weakness off of Monday's shooting star candle.  We could see a rising 20 day EMA test on the current weakness, although I remain a big fan of this sector:

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Here's One Case For A Near-Term Top


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Dow Transports Gain 1000 Points During Last 8 Days' Melt Up

Market Recap for Monday, December 4, 2017

Recent bullish themes continued on Monday.  Outperformance by the Dow Jones (+0.24%) and S&P 500 (-0.11%) overshadowed ugly relative performance from technology (XLK, -1.61%) and the NASDAQ (-1.05%).  Even the riskier Russell 2000 index ($RUT, -0.30%) easily outperformed the NASDAQ.  The good news is that this quick correction in technology stocks is relieving prior overbought conditions and helping to remedy the momentum issues that were in place.  Check out the XLK:

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We're Quickly Approaching A Seasonal Bearish Period; Consider Taking Some Profits

Market Recap for Friday, December 1, 2017

An early selloff on Friday quickly became a buying opportunity as the bulls jumped back on board for what they hope will be another big upturn.  All of our major indices ended the Friday session in negative territory, but the losses early in the day were much, much larger.  The Dow Jones, for instance, was down 350 points a couple hours into the day, but recovered more than 300 of those points to finish down just 40.76 points.  The tech-heavy NASDAQ was down an astonishing 137 points, or roughly 2%, before reversing and finishing 26 points lower.

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The Dow Jones Has Its Biggest Gain of 2017, Closes Above 24000

Market Recap for Thursday, November 30, 2017

It was another broad-based rally on Wall Street with traders ditching bonds and rushing into equities.  The Dow Jones rallied 331.67 points to easily close above 24,000 for the first time in its history.  The records just keep piling up.  It was only 10 months ago that the Dow Jones managed to clear the psychological 20,000 level.  Since that time, we've seen the Dow rumble higher by more than 20%, taking out four 1,000 point milestones along the way.  Nothing seems to slow down this equity train with the Dow's weekly RSI now approaching 84, the most overbought it's been this century.

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