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

Right On Cue, Internet Stocks Break Out; NASDAQ 100 Soars

by Tom Bowley

Market Recap for Thursday, October 5, 2017 Well, if you were worried about an underperforming technology sector and the inability of the NASDAQ 100 ($NDX) to reach new highs, you can stop worrying.  Both broke out on Thursday with emphatic moves to clear highs established over the summer.  First, check out the bullish ascending triangle pattern that was cleared on the NDX: Momentum is just beginning to accelerate from its launch near centerline support.  The top of the triangle is at 6000 and the initial low in the pattern was approximately 5750.  That difference Read More 

Trading Places with Tom Bowley

Consumer Stocks, Healthcare Take Their Turn To Lead U.S. Equities To New Highs

by Tom Bowley

Market Recap for Wednesday, October 4, 2017 This bull market advance continues to be about rotation.  Index rotation.  Sector rotation.  Individual stock rotation.  Few areas of the market are breaking down.  It's mostly about gains, consolidation, then more gains.  On Wednesday, the red hot Russell 2000 took a day off.  How can you blame traders for taking some profits off the table.  Check out the recent run in small caps: The combination of overbought conditions and typical bearishness to begin October for small caps could have Read More 

Trading Places with Tom Bowley

Airlines Catch Seasonal Jet Stream To Lead Transports, Market Higher

by Tom Bowley

Market Recap for Tuesday, October 3, 2017 It didn't take long for the seasonal tailwinds to kick in for airlines ($DJUSAR).  I posted last Friday that airlines were poised to breakout technically and highlighted Alaska Air Group (ALK) as one airline that has performed extremely well during the fourth quarter, especially October.  Well, the breakout happened yesterday for the entire group and it was a sight to see.  The DJUSAR soared 5.64% as transports ($TRAN) added to their already very overbought conditions.  Check out the breakout on the DJUSAR: Read More 

Trading Places with Tom Bowley

October Begins In Record-Setting Fashion

by Tom Bowley

Market Recap for Monday, October 2, 2017 It was another record day on Wall Street.  The Dow Jones, S&P 500, NASDAQ and Russell 2000 all closed at fresh all-time highs.  Wide participation is a hallmark of a bull market rally and, make no mistake, there's been wide participation on this rally.  The only disappointment on Monday was the NASDAQ 100's ($NDX) inability to join the party.  Key large cap technology names did not participate and that held back the NDX.  Materials (XLB, +1.09%), healthcare (XLV, +1.02%) and financials (XLF, +0.85%) led the rally Read More 

Trading Places with Tom Bowley

The Fourth Quarter Begins With Seasonal And Technical Signals Aligning Bullishly

by Tom Bowley

Market Recap for Friday, September 29, 2017 We wrapped up the third quarter on Friday with all-time highs showing up everywhere.  There was a big buying push into the close on Friday, likely in anticipation of more strength during the fourth quarter.  There was strength in most aggressive areas of the market with only utilities (XLU, -0.08%), consumer staples (XLP, -0.07%) and energy (XLE, -0.01%) finishing slightly in negative territory.  Technology (XLK, +0.68%) was the leader as the group closed at an all-time high on Friday: A big reason Read More 

Trading Places with Tom Bowley

Airlines Looking To Rally In October?

by Tom Bowley

Market Recap for Thursday, September 28, 2017 After early selling on Thursday, U.S. indices mostly rebounded throughout the balance of the day resulting in mostly slight gains by day's end.  Materials (XLB, +0.71%) performed quite well after nearly testing its rising 20 day EMA on Wednesday.  Financials (XLF, +0.16%) didn't see much in the way of gains, but held onto its Wednesday breakout, a bullish signal as well. September was a great month for auto parts stocks ($DJUSAT).  The group has gained 11.53% over the past month and those gains helped the industry clear Read More 

Trading Places with Tom Bowley

U.S. Equities Rally As Treasury Yields Soar

by Tom Bowley

Market Recap for Wednesday, September 27, 2017 U.S. stocks were lifted at least in part by rising treasury yields.  The 10 year treasury yield ($TNX) spiked 8 basis points and that represents a significant selloff in treasuries.  Those proceeds tend to be reinvested in equities and that was certainly the case on Wednesday.  The Russell 2000 ($RUT) has been on fire and it rose nearly 2% in another emphatic relative strength statement.  The NASDAQ gained more than 1% and both the Dow Jones and S&P 500 rose as well.  Clearly, however, the day belonged to the more Read More 

Trading Places with Tom Bowley

Bearish Seasonal Summer Period Coming To An End

by Tom Bowley

Market Recap for Tuesday, September 26, 2017 Late day selling created a bifurcated U.S. market on Tuesday as small caps performed quite well ($RUT, +0.34%), while the Dow Jones finished slightly in negative territory.  Technology (XLK, +0.36%) rebounded after Monday's selling to lead most of our indices higher.  Consumer stocks also performed well with consumer staples (XLP, +0.24%) posting a decent gain.  Consumer discretionary (XLY, +0.01%) was mostly flat, but outperformed the other six sectors.  Materials (XLB, -0.44%) was the weak link, but after very solid gains Read More 

Trading Places with Tom Bowley

Technology Slumps As Facebook Falls On Heavy Volume

by Tom Bowley

Market Recap for Monday, September 25, 2017 Technology (XLK, -1.18%) was the only real problem on Monday, but it was a big problem.  Mobile telecommunications ($DJUSWC) and internet stocks ($DJUSNS) were the big losers with the latter slammed by Facebook (FB), which dropped nearly 5% on extremely heavy volume.  There's an interesting weekly chart on FB below in the Sector/Industry Watch section.  Here's the current look at the XLK: Technology stocks were up more than 20% year to date and in need of some relief.  The negative divergence is evidence of Read More 

Trading Places with Tom Bowley

Russell 2000 Tests Key Resistance, Primed To Lead In 4th Quarter

by Tom Bowley

Market Recap for Friday, September 22, 2017 Friday was a bifurcated kind of day on Wall Street.  We saw a small loss on the Dow Jones, while there were slight gains on the other major indices.  The Russell 2000, in particular, saw relative strength and gained nearly 7 points to finish at 1450.  That's a big level of price resistance as you can see below: The sideways consolidation on the RUT has helped to resolve the momentum issues that were present over the entire summer.  Now small caps appear poised to turn higher after we saw a 50 week SMA test and nearly tested Read More 

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