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

U.S. Stocks Slide As S&P 500 Prints Double Bottom

by Tom Bowley

Market Recap for Monday, April 2, 2018 It was a big down day on Wall Street with eight of nine sectors down 2% or more.  Only the defensive utilities (XLU, -0.77%) were able to minimize its losses, with the more aggressive consumer discretionary (XLY, -2.82%) and technology (XLK, -2.38%) hit much harder.  The Dow Jones tested its low from a week earlier, while the benchmark S&P 500 managed to close at 2581, the same low it reached in early February: This certainly doesn't guarantee we'll see higher prices near-term, but it is an area where the S&P 500 Read More 

Trading Places with Tom Bowley

Energy Bounces Off Of Rock Solid Support......Again

by Tom Bowley

Market Recap for Thursday, March 29, 2018 The energy ETF (XLE, +2.11%) surged off of key price support at 66.00 and there's reason to believe that this rally could last a bit longer.  Crude oil prices ($WTIC) outperformed the XLE during the month of March and we could see the XLE play a bit of catch up in April.  Here's the chart: The red arrows highlight the difficulty that the XLE has had negotiating the 69-70 price resistance zone.  A close above 69.50 would be bullish as not only would it clear price resistance, but it would also clear its 50 day SMA for the first Read More 

Trading Places with Tom Bowley

Wednesday's Reversal In NASDAQ 100 Volatility Gauge Could Signal End Of Selling

by Tom Bowley

Market Recap for Wednesday, March 28, 2018 The U.S. stock market settled down on Wednesday and that could be very good news for the bulls.  High volatility ($VIX) has stunned equity traders the past two months after a 15 month period of little volatility.  But on Wednesday, the VIX fell more than 8% from its intraday high as the Dow Jones traded in a fairly narrow 300 point range throughout much of the day.  I say "fairly narrow" range from a relative perspective as the Dow Jones has had much larger 500-750 point intraday ranges in recent sessions. Read More 

Trading Places with Tom Bowley

FAANG Stocks Slammed, NASDAQ Plummets

by Tom Bowley

Market Recap for Tuesday, March 27, 2018 I've discussed since early February the difficulty in trading a market with an elevated Volatility Index ($VIX).  While returns can be awesome when you make great calls, the opposite is true when your timing is less than perfect.  Here's how the NASDAQ has performed the past four trading sessions with a VIX in the 20s: Thursday, March 22:  -178.61 (-2.43%) Friday, March 23:  -174.01 (-2.43%) Monday, March 26:  +227.88 (+3.26%) Tuesday, March 27:  -211.74 (-2.93%) Would you Read More 

Trading Places with Tom Bowley

Technology And Financials Bounce Back Strongly, U.S. Equities Surge

by Tom Bowley

Market Recap for Monday, March 26, 2018 It was an impressive rally on Wall Street on Monday.  All nine sectors advanced at least 1%.  The four aggressive sectors - technology (XLK, +3.80%), financials (XLF, +3.24%), consumer discretionary (XLY, +2.95%) and industrials (XLI, +2.42%) - were the clear leaders on the rally and this underscores the continuing strength of this bull market.  Yes, we've seen scary periods of selling, but market participants are not running for safety during rallies.  They continue to chase after the highest risk areas of the market.  This Read More 

Trading Places with Tom Bowley

Very Weak Financials Drive Dow Jones To Lowest Close in 2018

by Tom Bowley

Market Recap for Friday, March 23, 2018 All of our major indices tumbled on Friday, but none are struggling quite the same as the Dow Jones, which fell another 425 points on Friday to close at its lowest level since November 2017.  There are likely three reasons for this relative underperformance.  The first likely stems from a potential trade war.  The Dow Jones is made up of 30 of the world's largest companies and these companies do business throughout the world.  A trade war that pits China against the U.S. or one that develops into the U.S. against the world would Read More 

Trading Places with Tom Bowley

Trade War Fears Send U.S. Stocks Reeling

by Tom Bowley

Market Recap for Thursday, March 22, 2018 Let me start today's article by saying that the stock market loathes uncertainty.  Traders love boring small gains day after day with subtle, anticipated pullbacks to key moving averages or short-term price support levels.  You can always tell when the stock market is in a good mood because nothing upsets it.  Bad news is routinely ignored, the Volatility Index ($VIX) hovers near single digits, and bears wonder why bad economic reports, geopolitical concerns or warnings from market leaders have relatively no impact on Read More 

Trading Places with Tom Bowley

Fed Raises Quarter Point, Energy Soars

by Tom Bowley

Market Recap for Wednesday, March 21, 2018 It was a volatile session on Wednesday, particularly after 2pm EST when the FOMC policy statement was released.  In Fed Chairman Jerome Powell's first meeting as Fed Chief, the Fed raised the benchmark funds rate a quarter point from 1.50% to 1.75%.  It was the sixth time rates have been raised since December 2015.  The funds rate is very closely tied to consumer interest rates.  The Fed also raised its economic forecast, saying that "the economic outlook has strengthened in recent months", new language from previous Read More 

Trading Places with Tom Bowley

I'm Betting On The Gambling Stocks This Spring

by Tom Bowley

Market Recap for Tuesday, March 20, 2018 There weren't huge gains on Tuesday, but given how poorly Monday went, I'd say yesterday was a very solid day.  On Monday, we saw the Volatility Index ($VIX) spike more than 20% back above 19 as fear ramped up.  The Dow Jones lost 335 points.  The more aggressive NASDAQ Composite lost 137 points (-1.84%) in what had to be considered its worst day since it closed down 275 points on February 8th to close at its 2018 low.  On February 9th, we saw the NASDAQ tumble another 147 points intraday before reversing and closing in positive Read More 

Trading Places with Tom Bowley

Facebook Shares Crater Amid Controversy; Leads Another Big Selloff

by Tom Bowley

Market Recap for Monday, March 19, 2018 Ok, let's start with the obvious.  It was an ugly day for U.S. equities.  The Dow Jones, S&P 500, NASDAQ and Russell 2000 fell 1.35%, 1.42%, 1.84% and 0.98%, respectively.  The Volatility Index ($VIX), which had been declining steadily to its intraday low of 13.31 on Friday, March 9th, suddenly began to surge.  The VIX finished 20% higher yesterday, closing at 19.02.  While this should have everyone's radar at high alert, there was a silver lining if you're in the bullish camp.  The VIX left a "long tail" to the Read More 

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