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

Discretionary Stocks Poised For A Bullish Explosion

by Tom Bowley

Market Recap for Thursday, February 21, 2019 U.S. stocks stalled on Thursday, but a minimum of sideways consolidation this week was to be expected given 60 minute negative divergences that I discussed earlier in the week.  Before we talk about yesterday's action, check out how the negative divergence has played out rather well to the rising 50 hour SMA and note that the hourly PPO has nearly "reset" back to its centerline (pink arrows): In addition to testing its 50 hour SMA, the SPX also pulled back almost exactly to trendline support.  The slope of this Read More 

Trading Places with Tom Bowley

A Commodity Bottom? There's Not One In Sight

by Tom Bowley

Market Recap for Tuesday, February 19, 2019 We saw a bit of intraday back and forth action on Wednesday with the same result - another Wall Street gain.  I'm really surprised we haven't seen more selling this week.  We're at major price resistance levels on our major indices, there was incredible strength into options expiration Friday (usually a recipe for disaster the following week), 60 minute negative divergences are in play, and the bond market still isn't buying the idea of a stronger or strengthening economy ahead.  Yet here I am again, discussing the strength Read More 

Trading Places with Tom Bowley

U.S. Equities Approach Key Resistance, Expect A Battle

by Tom Bowley

Market Recap for Tuesday, February 19, 2019 Materials (XLB, +0.62%) and utilities (XLU, +0.59%) led another Wall Street rally on Tuesday, although our major indices did see a bit of selling into the close.  The XLB and XLU benefited from a falling dollar ($USD, -0.40%) and 10 year treasury yield ($TNX, down 2 basis points to 2.65%), respectively.  On the consumer front, Walmart, Inc (WMT, +2.21%) delivered a solid quarterly earnings report to help lead consumer stocks higher.  Both consumer staples (XLP, +0.52%) and consumer discretionary (XLY, +0.41%) outperformed our Read More 

Trading Places with Tom Bowley

T-Mobile (TMUS) Breaks Out, Dialed-In For Spring Ka-Ching!

by Tom Bowley

Market Recap for Friday, February 15, 2019 Friday produced very solid gains as the U.S. government averted a second shutdown as a funding resolution was passed.  Also, there was word that US-China trade talks were progressing and any positive developments there are typically well-received by global markets.  In an odd twist, the largest companies and the smallest companies provided leadership as the Dow Jones and Russell 2000 showed the biggest gains at 1.74% and 1.56%, respectively.  The S&P 500 and NASDAQ had nice days as well, gaining 1.09% and 0.61% Read More 

Trading Places with Tom Bowley

Turn Off CNBC And Turn On StockCharts TV

by Tom Bowley

Market Recap for Thursday, February 14, 2019 Real estate (XLRE, +0.38%) and communications services (XLC, +0.37%) were the leaders yesterday as Wall Street staged a rally attempt after dealing with an early blow - a very weak December retail sales report.  There's one thing everyone should keep in mind though - the stock market looks ahead and not in the rear view mirror and that was on full display yesterday.  The headline news created a stir at the open, but buyers returned quickly as the U.S. stock market has been sending a signal that the second half of 2019 will be better Read More 

Trading Places with Tom Bowley

For Now, Small Is Better

by Tom Bowley

Market Recap for Wednesday, February 13, 2019 The stock market is beginning to exhibit a bit of the borishness that accompanies bull market advances.  The Volatility Index ($VIX) remaining below 16 is confirming the reduced level of fear.  There were certainly swings intraday yesterday, but the panicked, impulsive-type selling appears to have dissipated, which is bad news for the bears.  At the close yesterday, all of our major indices finished fractionally higher, led by the Dow Jones' rise of 0.46%. The headline news continues to be mostly mixed earnings Read More 

Trading Places with Tom Bowley

Finding Stocks To Achieve Your Goals

by Tom Bowley

Market Recap for Tuesday, February 12, 2019 Another government shutdown was averted and the U.S. stock market reacted quite favorably, as you might expect, with all of our major indices surging higher.  Our major indices had quite a day: Dow Jones:  +1.49% S&P 500:  +1.29% NASDAQ:  +1.46% Russell 2000:  +1.27% Materials (XLB, +2.24%) led all sectors, buoyed at least in part by a decline in the UUP (dollar proxy) for the first time in 9 days.  Our aggressive sectors mostly led the way higher, though, as there was a "risk on" theme that permeated Read More 

Trading Places with Tom Bowley

Time To Place Your Spring Hotel Reservation?

by Tom Bowley

Market Recap for Monday, February 11, 2019 Industrials (XLI, +0.53%), energy (XLE, +0.48%) and financials (XLF, +0.31%) were Monday's leaders as bifurcated action was once again present.  The clear index leader was the small cap Russell 2000 index (+0.84%) and that's become a theme in 2019 as discussed more in the Current Outlook section below.  The other major indices hugged the flat line with the Dow Jones (-0.21%) the sole index to finish in negative territory. I think someone must have read my Monday blog where I indicated that we needed more strength in Read More 

Trading Places with Tom Bowley

Bank Of America Looks Like A Winner

by Tom Bowley

Market Recap for Friday, February 8, 2019 Friday was a solid day for the bulls.  It wasn't because we saw large gains, because we didn't.  In fact, it was bifurcated action where the S&P 500, NASDAQ and Russell 2000 barely closed higher with gains of 0.07%, 0.14% and 0.05%, respectively.  The Dow Jones failed to break into positive territory, instead dropping 0.25%.  But the bullishness came from three key developments: (1) First, the reversal occurred near very important short-term support on the S&P 500.  In other words, there were buyers as Read More 

Trading Places with Tom Bowley

Negative Divergences Stymie Advance

by Tom Bowley

Market Recap for Thursday, February 7, 2019 The bears have been waiting for a day like yesterday, which featured a bit of impulsive selling and an accelerating Volatility Index ($VIX).  Unfortunately, the bulls may have already inflicted too much damage upon the bears for them to recover fully.  I view this nothing more than an overbought pullback for now.  I have a short-term "line in the sand" for the S&P 500.  Until that is lost, I'm viewing this as normal profit taking. All of our major indices declined, led by the NASDAQ's 1.18% drop.  Energy Read More 

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