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

Strong GDP And Blowout Earnings Fail To Inspire Bulls

by Tom Bowley

Market Recap for Friday, April 27, 2018 The news heading into Friday couldn't have been much better.  The initial reading of Q1 GDP came in stronger than expected at 2.3% vs. 2.0%.  We had blowout earnings from key leaders including Amazon.com (AMZN), Microsoft (MSFT) and Intel (INTC), yet the NASDAQ finished with a one point gain.  The morning started with great promise as the NASDAQ surged 77 points at the opening bell, but as we've seen many times recently, the gains didn't stick.  In fact, within 90 minutes of the opening bell, the NASDAQ found itself down 35 Read More 

Trading Places with Tom Bowley

NASDAQ 100 Trio Report Blowout Results, Technology Looking To Extend Rally

by Tom Bowley

Market Recap for Thursday, April 26, 2018 Two familiar areas - technology (XLK, +1.82%) and consumer discretionary (XLY, +1.62%) - saw money rotate their way on Thursday, with especially strong action in both internets ($DJUSNS, +4.11%) and semiconductors ($DJUSSC, +2.35%) leading the technology space.  Discretionary stocks were buoyed by home improvement retailers ($DJUSHI, +4.05%) as traders made a statement in the group despite the significant increase in the TNX in April: There was a positive divergence in play as selling momentum in the DJUSHI appeared to be Read More 

Trading Places with Tom Bowley

Will Today's Earnings-Related Gap Higher Break Through Key Resistance?

by Tom Bowley

Market Recap for Wednesday, April 25, 2018 Wall Street was able to find equity buyers yesterday, despite the 10 year treasury yield's ($TNX) first close above 3.00% since 2014.  The Volatility Index ($VIX) settled back down after approaching 20 for the second consecutive day.  It has closed well off its intraday highs both days, however, and that could be a signal of a short-term top in volatility: Volatility has really been one of the biggest stories of 2018, if not the biggest.  It's always welcome relief to see the VIX mark potential tops so we'll see if the bulls can Read More 

Trading Places with Tom Bowley

The Bears Are Making A Run For The Roses

by Tom Bowley

Market Recap for Tuesday, April 24, 2018 Pre-market action on Tuesday was solid and that's just about where the bullishness ended.  With the Kentucky Derby just around the corner, let me summarize Tuesday's action from the opening bell in different fashion:  "And they're off!  Caterpillar and Bullish Action storm out of the gate, but are quickly overtaken by Increased Volatility, False Breakout and Higher Rates.  The leaders are immediately joined by Impulsive Selling, while Aggressive Sectors trails the entire field.  Midway Read More 

Trading Places with Tom Bowley

Dollar Makes Major Breakout; What That Means For Investment Allocation

by Tom Bowley

Market Recap for April 23, 2018 A significant bullish breakout in the U.S. Dollar ($USD) occurred on Monday and the push higher is likely to just be beginning.  Before I look at possible ramifications, let's look at the chart itself: Monday's close was the USD's highest since mid-January.  A breakout could hurt performance of the S&P 500 over the next few months as a higher dollar would result in currency translation losses for multinational companies.  It could be a boon for smaller cap, Russell 2000 ($RUT) companies, however.  More on that in the Current Read More 

Trading Places with Tom Bowley

Two Bad Apples Don't Spoil The Whole Market Bunch

by Tom Bowley

Market Recap for Friday, April 20, 2018 The big news on Friday was the bond market.  The 10 year treasury yield ($TNX) closed just a tad above 2.95% and that was the highest close since late-2013/early-2014.  The TNX has climbed another couple basis points in early action this morning.  Higher treasury yields can be interpreted differently by different technicians.  For me, I believe treasury yields remain much closer to historic lows than to troublesome highs.  A strengthening economy with what has historically been incredibly low treasury yields is a very Read More 

Trading Places with Tom Bowley

Treasury Yields Spike; TNX Threatens 4+ Year High, Banks Soar

by Tom Bowley

Market Recap for Thursday, April 19, 2018 The U.S. stock market has been solid throughout April thus far, so seeing a Thursday drop of 0.57% and 0.78% on the S&P 500 and NASDAQ, respectively, shouldn't be too alarming.  And it wasn't.  But yesterday was not a day of across-the-board fractional losses.  There was major strength in some areas and serious selling in others.  One reason was the dramatic rise in the 10 year treasury yield ($TNX), which at one point rose above 2.93% and near a very important yield resistance at 2.94% - the high established earlier this Read More 

Trading Places with Tom Bowley

Bifurcated Action Doesn't Hold Back Transports, Renewable Energy

by Tom Bowley

Market Recap for Wednesday, April 18, 2018 Our major indices showed signs of tiring on Wednesday as its seasonal pre-earnings run from April 1st to April 18th concluded.  Five sectors managed to finish in positive territory, including the red-hot energy sector (XLE, +1.57%) and industrials (XLI, +1.04%).  The latter benefited from a superb showing by transports ($TRAN) as railroads ($DJUSRR) and airlines ($DJUSAR) soared on key earnings reports: We saw another bullish PPO crossover on the TRAN, similar to mid-March, but this time it's accompanied by much heavier Read More 

Trading Places with Tom Bowley

Twitter Leads Internet Group Higher; Netflix Soars On Earnings Beat

by Tom Bowley

Market Recap for Tuesday, April 17, 2018 Futures were solid heading into Tuesday's pre-market action as Netflix reported stellar Q1 results after the closing bell on Monday.  Then, on Tuesday morning, home construction ($DJUSHB) received great news as both March housing starts and building permits easily exceeded expectations.  Just before the market opened, the March industrial production report was released and it too beat expectations.  All of this set the market up for strength and the bulls took full advantage as our major indices continued their climb toward Read More 

Trading Places with Tom Bowley

Falling VIX Aiding Stocks; Watch This Resistance Zone On S&P 500

by Tom Bowley

Market Recap for Monday, April 16, 2018 Utilities (XLU, +1.37%) and materials (XLB, +1.34%) led rather odd market behavior on Monday.  The good news is that all nine sectors finished higher.  The bad news is that our most aggressive sectors struggled on a relative basis.  Financials (XLF, +0.44%) continued to suffer from an uninspired banking group ($DJUSBK, -0.03%).  Recreational products ($DJUSRP) were the weakest part of consumer discretionary (XLY, +0.75%) as that group can't quite make up its mind whether it wants to break out or break down: Read More 

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