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

Wall Street Ends Week With Gains, Home Construction Leads

by Tom Bowley

Market Recap for Friday, June 8, 2018 In a rare development, consumer staples (XLP, +1.23%) led Wall Street higher on Friday.  Over the past three months, the XLP has fallen 5.78% and no other sector is close to consumer staples' ineptitude.  The XLP has been the shunned part of consumer stocks as consumer discretionary (XLY, +0.21%) has gained 5.38% over the past three months.  That's a massive 11% difference over a fairly short time frame and it's resulted in a XLY:XLP ratio that has exploded higher: This XLY:XLP ratio is one reason to be extremely Read More 

Trading Places with Tom Bowley

Dow Jones Leads Bifurcated Market; McDonalds Soars On Announced Layoffs

by Tom Bowley

Market Recap for Thursday, June 7, 2018 The Dow Jones gained 95 points, extending its recent rally, on the strength of McDonalds Corp (MCD) and Chevron Corp (CVX).  MCD announced layoffs and Wall Street cheered the likely improvement to its bottom line by sending MCD higher by 4.37%: MCD headlined the strength in restaurants & bars ($DJUSRU), but others had very strong days as well.  Sonic Corp (SONC) pre-announced a stronger-than-expected sales forecast and a $500 million share repurchase program and that jumpstarted a group that's been lagging many of its Read More 

Trading Places with Tom Bowley

Materials And Financials Lead Strong Rally; Tesla Breaks Out

by Tom Bowley

Market Recap for Wednesday, June 6, 2018 It was another solid bull market rally on Wall Street on Wednesday, this time with the Dow Jones conglomerates leading the action.  The Dow Jones Industrial Average gained 346 points, or 1.40%, topping 25,000 and closing at its highest level since the second week of March.  All of our other major indices climbed as well with the S&P 500 now on a move toward 2800, a key reaction high area from mid-March: Momentum is building as it becomes more and more obvious that the 9+ year bull market is resuming after a lengthy Read More 

Trading Places with Tom Bowley

Retail And Small Cap Industrials Helping To Feed This Bull Market

by Tom Bowley

Market Recap for Tuesday, June 5, 2018 It's the perfect storm.  Technology (XLK, +0.35%) sets another all-time high record close to lead the NASDAQ to the same.  Strengthening economic conditions are creating a higher interest rate environment.  That means money rotates from bonds to stocks.  The dollar ($USD) is rising so the more aggressive small cap stocks are leading both on an absolute and relative basis.  What's going to stop this freight train?  Nothing at the moment.  The small cap (Russell 2000) love is showing few signs of growing weary as Read More 

Trading Places with Tom Bowley

Consumer Stocks Roll; NASDAQ Breaks 7600

by Tom Bowley

Market Recap for Monday, June 4, 2018 Consumer stocks - discretionary (XLY, +1.12%) and staples (XLP, +0.83%) - led Wall Street higher on Monday, especially the NASDAQ, which closed above 7600 for the first time in its history.  The highest candle body on the NASDAQ, however, is at the March 13th open, which was 7627.52.  That's the bulls next target.  Technology (XLK, +0.80%) also was strong, particularly internet stocks ($DJUSNS) as they've now jumped more than 100 points since their 20 day EMA test one week ago: The DJUSNS is now moving into overbought Read More 

Trading Places with Tom Bowley

Strong Jobs Report Powers NASDAQ To Near Record Close

by Tom Bowley

Market Recap for Friday, June 1, 2018 Technology (XLK, +1.70%) and materials (XLB, +1.53%) led Wall Street higher on Friday after the May nonfarm payrolls beat expectations, providing a lift for those anticipating further economic strength in the months ahead.  Semiconductors ($DJUSSC, +2.42%) and internet stocks ($DJUSNS, +2.34%) powered ahead, with the former closing at its highest weekly close ever, topping August 2000's 3680 weekly close: Semiconductors had been struggling for a couple of reasons.  First, there was that August 2000 high that had traders Read More 

Trading Places with Tom Bowley

Small Caps Enter Their Best Relative Strength Month On A Roll

by Tom Bowley

Market Recap for Thursday, May 31, 2018 The roller coaster ride of 2018 has suddenly re-emerged this week.  After considerable weakness on Tuesday to open this holiday-shortened week, we saw a beautiful bounce-back rally on Wednesday.  That felt pretty good from a bullish perspective..until yesterday's renewed selling.  But the fear meter - Volatility Index ($VIX) - barely budged higher given the selloff and that is an indication of a market willing to ignore poor headline news. The bulls can take a consolation prize, even on an otherwise bearish day.  The other Read More 

Trading Places with Tom Bowley

Health Care Providers Could Cure Your Portfolio Woes

by Tom Bowley

Market Recap for Wednesday, May 30, 2018 Remember that Tuesday weakness?  Yeah, I didn't think so.  Poof!!!  It took the U.S. stock market all of one day to essentially erase the scars of that Tuesday selling.  The NASDAQ broke out of a bullish flag pattern and the small cap Russell 2000 closed at yet another all-time high.  Here's that NASDAQ breakout: From a sector perspective, the bounce back occurred in all of the areas I would've expected.  Energy (XLE, +3.03%) needed a rebound and that group got it.just as crude oil prices ($WTIC) rose off key $66 Read More 

Trading Places with Tom Bowley

Treasury Yields Tumble Amid European Political Uncertainty

by Tom Bowley

Market Recap for Tuesday, May 29, 2018 Political uncertainties in Italy and Spain rattled global markets on Tuesday, leaving the Dow Jones with a loss of nearly 400 points on the session.  There was a clear flight to safety, underscored by a massive 16 basis point drop in the 10 year treasury yield ($TNX) as it fell to 2.77%.  That precipitous drop caused significant selling in financial stocks (XLF, -3.34%), although there was plenty of collateral damage as well.  Basic materials (XLB, -1.73%) and industrials (XLI, -1.60%) both absorbed plenty of pain.  One day after Read More 

Trading Places with Tom Bowley

NASDAQ 100 Subscribes To NFLX And INTC Breakouts

by Tom Bowley

Market Recap for Friday, May 25, 2018 The NASDAQ 100 ($NDX) led the action on Friday and last week, thanks in large part to Netflix (NFLX) and a couple of chipmakers - Intel Corp (INTC) and Micron Technology (MU).  NFLX surged to an all-time high earlier in the week, easily clearing overhead price resistance, and INTC followed suit by doing the same on Friday.  MU is on the verge of such a breakout, gaining 33% in the past month alone, and nearing a $62 close, its highest since 2000: The NDX was the only major index to finish in positive territory on Friday Read More 

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