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

S&P 500 Stymied At Major Price Resistance; Short-Term Top?

by Tom Bowley

Market Recap for Wednesday, August 22, 2018 Stock market action was bifurcated here in the U.S. on Wednesday as NASDAQ stocks led to the upside.  The small cap rally continued with the Russell 2000 closing at a second consecutive all-time high.  But both the Dow Jones and S&P 500 closed lower with the latter failing for a second straight day to clear all-time high closing resistance: An ascending triangle typically comes in an A-B-C-D-E pattern with A being the end of and advance, B the initial reaction low, C the move higher to test price resistance created by A, D the Read More 

Trading Places with Tom Bowley

Russell 2000 Breaks Out Of Bullish Pattern To Lead U.S. Equities Higher

by Tom Bowley

Market Recap for Tuesday, August 21, 2018 Despite some selling late in the day, it was mostly a bullish day on Wall Street.  The two sectors that lagged were defensive sectors - utilities (XLU, -0.72%) and consumer staples (XLP, -0.71%).  Leading the market higher were consumer discretionary (XLY, +0.79%) and industrials (XLI, +0.74%).  The XLY is featured in the Sector/Industry Watch section below.  The latter, however, is being driven higher by strong transports ($TRAN), which recently broke out as reflected below: Railroads ($DJUSRR) have been the Read More 

Trading Places with Tom Bowley

Think AAPL's Been A Great Performer? Here's One In Its Space Even Better

by Tom Bowley

Market Recap for Monday, August 20, 2018 Leadership from technology (XLK, -0.15%) was lacking, but strength in consumer discretionary (XLY, +0.71%), materials (XLB, +0.70%), energy (XLE, +0.67%) and industrials (XLI, +0.67%) was more than enough to offset areas of weakness as all of our major indices posted gains.  If the Dow Jones and S&P 500 are to make breaks above their January highs, we'll need to see more large cap strength in the sector ETFs.  Healthcare (XLV, +0.33%) already made that breakout, as can be seen below: There is a slight Read More 

Trading Places with Tom Bowley

Here's A Monday Setup With A Strong Reward To Risk Opportunity

by Tom Bowley

Note I'm still traveling so my blog article today will focus on my Monday Setups for this week.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. tomorrow. Monday, August 20th Since reporting excellent quarterly earnings results in mid-June, Winnebago Industries (WGO) has been under selling pressure, falling approximately 20% since its June top.  WGO is now approaching key price support with an RSI at 40 - typically an area where we see reversals if a stock is truly trending higher.  Here's the current Read More 

Trading Places with Tom Bowley

Trading Losses Are Not A Problem, But BIG Trading Losses Are

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Friday, August 17th At ChartCon 2018 last week, Dr. Alexander Elder pointed out the obvious - that large losses kill returns.  A 20% loss on a stock requires a 25% gain on the proceeds to break even.  For those needing to see the math, here it is: Read More 

Trading Places with Tom Bowley

This Is How I Use The RSI

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Thursday, August 16th If you've noticed, I generally include the RSI on nearly all my charts, but I rarely discuss it.  From a momentum oscillator perspective, I much prefer the MACD and PPO.  I used to plot the MACD on all of my charts but, to be quite honest Read More 

Trading Places with Tom Bowley

Combining The PPO And 20 Day EMA For Short-Term Trading

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Wednesday, August 15th I trade companies where revenue and EPS estimates have been surpassed in their most recent quarterly reports, but I don't just buy at any price.  I want to maximize my reward to risk upon entry so unless I can catch a breakout in its very early Read More 

Trading Places with Tom Bowley

Beneficiaries Of A Strengthening Dollar

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Tuesday, August 14th Yesterday, I wrote about the recent breakout in the U.S. Dollar Index ($USD).  I'd like to take that a step further today.  The USD rose sharply off the January through March lows and with it was a surge in small cap stocks vs. their larger cap Read More 

Trading Places with Tom Bowley

Dollar Breakout Signals Resurgence In Small Cap Relative Strength

by Tom Bowley

Note I'll be traveling and on vacation this week, so my blog articles will focus on very brief topics regarding current market themes or my own trading strategies.  I'll return to my "normal" blog postings regarding market action, outlook, historical tendencies, etc. when I return on Monday, August 20th. Monday, August 13th I had been awaiting a dollar breakout and it's happened.  The longer-term uptrend held and the inverse head & shoulders pattern has been confirmed with the breakout.  The measurement of this pattern is approximately 102 to challenge the high Read More 

Trading Places with Tom Bowley

Banks Showing Renewed Strength; ChartCon FINAL CALL

by Tom Bowley

ChartCon Starts Today! If you haven't already, I'd highly recommend that you join me and many of my StockCharts.com colleagues from around the globe for ChartCon 2018.  We did our rehearsals and walkthroughs yesterday and my great friend Greg Schnell kicks off the conference in less than an hour, discussing high potential setups.  He'll be followed by many of the world's great technical analysts including John Murphy, Dr. Alexander Elder, Martin Pring and so many others.  We're incredibly excited to get things started today and we'd all love for you to join us Read More 

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