Trading Places with Tom Bowley

Consumer Relationship Still Pointing To Higher Prices

Market Recap for Wednesday, August 2, 2017

The action on Wednesday was quite boring once again, despite hundreds of companies reporting their quarterly results.  The Dow Jones jumped another 52 points to a fresh record high - which it's been seeing daily - and it pierced 22000 for the first time in its history, touching 22036 at its intraday high before settling in at 22016 at the close.  The benchmark S&P 500 rose another point to 2477, but one of its biggest technical issues - a weekly negative divergence - hasn't seen any improvement:

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Financials Lead Dow Jones Rally; Costco Rebounds

Market Recap for Monday, July 31, 2017

The Dow Jones set another all-time high on Monday, rising another 60 points in its lone attempt to carry the bull market to new heights.  All of our other major indices fell on Monday despite the renewed strength of financials (XLF, +0.72%).  Home Depot (HD) was the leading component and the only stock in the Dow Jones to gain more than 1%.  HD may struggle to lead the Dow much further, however, as price and volume trends have both turned south.  Check out the latest HD chart:

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Defense Stocks Bounce Off Price Support; Dow Jones Sets New Record

Market Recap for Friday, July 28, 2017

The U.S. stock market has been quite resilient and today wraps up a very strong July.  On Friday, only the Dow Jones finished higher - and at a fresh new record high - while healthcare (XLV, +0.50%) and industrials (XLI, +0.23% were the only two sectors to finish in positive territory.  The NASDAQ remained under pressure after heavy selling on Thursday afternoon kept buyers at bay.  The technology bulls will see an early test on the NASDAQ's 60 minute chart as the opening bell rings:

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Amazon Disappoints, Techs Look To Head Lower

Market Recap for Thursday, July 27, 2017

The mostly unabated rise in technology shares off the early July low took a sudden turn lower on Thursday afternoon and the initial reactions to quarterly earnings reports from Amazon.com (AMZN) and Starbucks (SBUX) won't help this morning as they're down 2.72% and 6.25%, respectively, in pre-market action.  The solid uptrend in the NASDAQ 100 ($NDX) actually broke a few days ago, but prices have continued pushing higher amid slowing price momentum.  Check out this chart:

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Transportation Services Ready To Breakout, Ryder Trucking Along

Market Recap for Wednesday, July 26, 2017

The small cap Russell 2000 index struggled, finishing down 0.56% on Wednesday's session, but it was another day of record high closes elsewhere as the Dow Jones, S&P 500 and NASDAQ all advanced.  The FOMC provided its latest policy statement at 2pm EST yesterday, but after some brief weakness, our major indices recovered and the move to new highs was underway.

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Copper And Oil Surge; Materials Among Leaders

Market Recap for Tuesday, July 25, 2017

Energy shares (XLE, +1.26%) received another boost when crude oil prices ($WTIC) surged on Tuesday to close at $47.89 per barrel (+3.34%), its highest close in nearly two months.  While the crude oil spike extends a very nice rally off its triple bottom low in June, the XLE has yet to break the steep downtrend that it's been mired in during 2017.  Here's a current chart of both the WTIC and XLE:

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Banks Bounce Off Support, Financials Lead

Market Recap for Monday, July 24, 2017

It was another bifurcated session as the more aggressive NASDAQ and Russell 2000 led while the Dow Jones and S&P 500 took a breather.  That's been the theme of late and as long as the more aggressive indices lead, it's a good sign for equities.  Another good sign for equities is that Friday's close on the Volatility Index ($VIX) at 9.36 marked the second lowest reading on record, surpassed only by the December 23, 1993 close of 9.31.  Extreme complacency suggests to me that the market is prepared to withstand bad news and does NOT represent the type of environment where major corrections or bear markets begin.

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U.S. Stocks Finish A Strong Week With A Flat Friday

Market Recap for Friday, July 21, 2017

Friday was definitely a boring kind of day, but the bulls will generally take boring - especially after a nice push higher and a huge slate of earnings about to be released this week.  While all of our major indices finished Friday on the negative side, only the Dow Jones was unable to finish the week higher.  The NASDAQ was the leader last week, rising more than 1%, but even this index struggled the second half of the week, battling a 60 minute negative divergence.  Here's the visual:

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Coal And Renewable Energy Surge To Lead U.S. Equities To Fresh Highs

Market Recap for Wednesday, July 19, 2017

Energy (XLE, +1.46%) and materials (XLB, +0.96%) led the major U.S. indices to all-time highs on Wednesday, with particular strength in coal ($DJUSCL) and renewable energy ($DWCREE), which rose 6.36% and 3.08%, respectively.  The former's strength comes on the heels of a bottoming head & shoulders breakout as reflected below:

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