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

Monday Trade Setup - Garmin Fills Gap, Looks To Head Higher

by Tom Bowley

Market Recap for Friday, May 18, 2018 Last week ended with plenty of bifurcation.  Strength was once again seen across the small cap universe as the S&P 600 SmallCap Index and Russell 2000 both finished the week at all-time high closing levels.  The larger cap Dow Jones and S&P 500, meanwhile, languished all week and closed well off of their respective all-time highs set back in January.  From a sector perspective, action was mixed last week as well with four sectors higher, four sectors lower, and one unchanged. On Friday, it was the industrials Read More 

Trading Places with Tom Bowley

Energy Has All Guns Blazing, Leads Bifurcated Market

by Tom Bowley

Market Recap for Thursday, May 17, 2018 There's a new sheriff on Wall Street and it's the energy ETF (XLE, +1.51%).  Its SCTR has soared to 97.1 with the second best SCTR (XLK - technology ETF) at 86.8.  The distance between the two is widening.  The XLE not only led the action yesterday, but it is also the sector leader over the past week, month, three months and six months.  Only three sectors have gained ground over the past three months and they're as follows: Energy (XLE):  +16.38% Technology (XLK):  +3.27% Read More 

Trading Places with Tom Bowley

Correlation Suggests This Financial Group Is About To Explode Higher, Get In Early

by Tom Bowley

Market Recap for Wednesday, May 16, 2018 We saw another advance on Wall Street on Wednesday as key indices continue to clear important hurdles.  Perhaps the most significant yesterday was the Russell 2000, which ended its bullish continuation pattern as expected - with a bullish breakout to the upside: It's never a bad thing to see the more aggressive small caps leading the market to the upside and having a pattern measurement only aids the bulls in terms of targets down the road.  From top to bottom in this ascending triangle pattern, it measures 175 points.  Add that to Read More 

Trading Places with Tom Bowley

The Four Decade-Long Downtrend In Interest Rates Is Over And This Is What It Means

by Tom Bowley

Reminder If you like my daily Trading Places blog articles and you haven't done so already, please subscribe below.  It's a great feature that StockCharts.com provides for all of the blogs here, and it's FREE and easy.  Simply scroll to the bottom of this article (or any other blog author's article), type in your email address and hit the "Subscribe" button.  You'll then receive my articles each day the stock market is open as soon as they're published!  Thanks for your support! Market Recap for Tuesday, May 15, 2018 Read More 

Trading Places with Tom Bowley

Transports Fail Again At Resistance, Watch Them Closely

by Tom Bowley

Market Recap for Monday, May 14, 2018 It was a day of bifurcated action, although the Dow Jones did manage to close higher for the 8th consecutive trading session, the longest such streak in 2018.  One look at sector performance, however, illustrates the mixed action.  Four sectors finished higher while five finished lower.  On the positive side, energy (XLE, +0.69%) and healthcare (XLV, +0.66%) aided the bulls attempt to keep the rally alive.  Weakness was primarily felt in utilities (XLU, -0.38%) as the 10 year treasury yield ($TNX) rose and finished near 3.0% Read More 

Trading Places with Tom Bowley

Biotechs Break To Six Week High As Healthcare Advances; Biotechs Poised To Lead Again

by Tom Bowley

Market Recap for Friday, May 11, 2018 Considering the gains that the bulls enjoyed earlier in the week, Friday's end-of-day numbers weren't too shabby.  Only the NASDAQ (-2.09 points) lost ground.  Over the six prior sessions, the NASDAQ moved from its intraday low on May 3rd of 6991 to Friday's close at 7403.  That's a huge rally so losing 2 points doesn't seem like a particularly big deal. The Dow Jones was the relative leader on Friday, posting a gain of 92 points to close at 24831, its highest close in nearly two months.  Technically, however, let's keep an eye Read More 

Trading Places with Tom Bowley

Treasury Yields, Dollar Take Breather; Utilities Rise

by Tom Bowley

Market Recap for Thursday, May 10, 2018 It was a very bullish day on Wall Street.  I suppose you could nit pick and point to utilities (XLU, +1.41%) outperforming on an up day, but it's difficult to ignore the solid participation during yesterday's rise.  All nine sectors were higher and the XLU simply saw a much-needed oversold bounce with the 10 year treasury yield ($TNX) and dollar (UUP) pausing for a change.  Healthcare (XLV, +1.34%) and technology (XLK, +1.30%) also performed very well on the session.  Within healthcare, medical supplies ($DJUSMS, +2.46%) was Read More 

Trading Places with Tom Bowley

S&P Small Caps Close At All-Time High; Falling VIX Says NO To Bear Market

by Tom Bowley

Market Recap for Wednesday, May 9, 2018 Was Wednesday the day that marked the resumption of the 9 year bull market?  Some might argue it began with the bottom last week, while others might argue it hasn't begun because the Dow Jones and S&P 500 are lagging badly and nowhere near breakouts to all-time highs.  I suppose there's a bit of truth in each of these arguments, so let's just say the U.S. stock market had a very bullish day. All of our major indices were bid higher, including another very strong day for the NASDAQ 100 ($NDX, +1.14%).  The NDX cleared Read More 

Trading Places with Tom Bowley

Bullish Rotation Continues On Tuesday Despite Flat Market

by Tom Bowley

Market Recap for Tuesday, May 8, 2018 There are days when the stock market seems to go nowhere and are relatively meaningless.  Tuesday wasn't one of those days.  While the Dow Jones and NASDAQ gained a measly 2.89 and 1.69 points, respectively, and the S&P 500 lost less than one point, there was still plenty of noteworthy action taking place.  Have you been watching the small cap Russell 2000?  It gained another half percent yesterday and has been swamping the S&P 500 for more than two months now.  It's partly due to the time of the year as small Read More 

Trading Places with Tom Bowley

Gains Moderate, But Relative Strength Felt In Key Areas

by Tom Bowley

Market Recap for Monday, May 7, 2018 There was plenty of green on Monday, adding to the gains we saw late last week.  The only areas of the market that struggled were the defensive consumer staples (XLP, -0.62%) and utilities (XLU, -0.52%).  On the flip side, money rotated once again to the more aggressive sectors - technology (+0.70%), financials (XLF, +0.66%), industrials (XLI, +0.66%) and consumer discretionary (XLY, +0.34%).  This has been a theme throughout the recent consolidation and does not provide a picture of a bear market ahead.  For an update of key Read More 

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