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

History Says BUY NOW, But Here's When The Charts Say To Buy

by Tom Bowley

Market Recap for Thursday, October 25, 2018 Obviously, the numbers from Thursday tell us that we had a very strong day.  But the "under the surface" signals really underscored that strength.  Transports ($TRAN) gained 1.88% after nearly touching the February low.  Technology (XLK, +3.44%), communication services (XLC, +3.31%) and consumer discretionary (XLY, +3.01%) - three key aggressive sectors - were the clear leaders as buyers adopted a "risk on" attitude, even if only for a day.  Financials (XLF, +1.55%) also were strong after a torturous 12% decline that Read More 

Trading Places with Tom Bowley

Fear Gauge Soars As Dow Jones Posts 600 Point Loss

by Tom Bowley

Market Recap for October 24, 2018 When the Volatility Index ($VIX, +21.83%) is elevated, like it's been throughout much of October, it should be no shock when Wall Street has a day like it did yesterday.  There was a buyers strike and the Dow Jones lost 500 points in just the last 90 minutes of Wednesday's session.  A 100 point loss quickly became a 600 point loss.  But the Dow's 2.41% drop paled in comparison to the NASDAQ's and Russell 2000's losses of 4.43% and 3.79%, respectively.  It generally takes weeks to see those types of gains, yet major damage was inflicted Read More 

Trading Places with Tom Bowley

Wild Ride On Wall Street Ends With Minor Losses

by Tom Bowley

Market Recap For October 23, 2018 It was a crazy day on Wall Street which, quite honestly, we should expect with a Volatility Index ($VIX) in the 20s.  Jitters in global markets saw U.S. futures plunge yesterday morning.  Our major indices opened more than 2% lower and it appeared we could be in for "one of those days."  But buyers stepped up to the plate and our major indices cut into those losses throughout the session.  The NASDAQ briefly went green after being down close to 200 points in the first half hour of trading.  That is quite the reversal Read More 

Trading Places with Tom Bowley

Banks, Financials Drop To 2018 Lows, Futures Tumble As Risk Grows

by Tom Bowley

Subscribe For FREE Below If you enjoy my daily blog article that summarizes recent action, current outlook and provides a historical perspective, please subscribe below.  It's 100% FREE, no strings attached, and is much appreciated.  Simply scroll to the bottom of my article and type in your email address in the space provided and click the green "Subscribe" button.  The benefit?  My article will be sent to the email address provided the moment it's published.  :-) Do the same for my colleagues here at StockCharts.com and get the best technical information Read More 

Trading Places with Tom Bowley

Here's What To Expect Going Forward And It May Not Be Pretty Short-Term

by Tom Bowley

Special Note I will be joining John Hopkins, President of EarningsBeats.com, for a special webinar later this afternoon at 4:30pm EST.  I will be discussing my trading strategy during a volatile market like the one we have now, including some tips and tricks to manage risk during these crazy gyrations.  I'll also be sharing my latest Strong Earnings ChartList, which has been trimmed down substantially, to all those that attend and are StockCharts.com members (you must be a StockCharts.com member to be able to download the ChartList).  The webinar also requires a membership Read More 

Trading Places with Tom Bowley

A Consumer Discretionary Group Has Been Sending Warning Signs For Two Years

by Tom Bowley

Market Recap for Thursday, October 18, 2018 Impulsive selling seemed to return to Wall Street on Thursday as the Dow Jones had a couple of intraday bouts where the index declined 200-300 points in just an hour or so.  That sent the Volatility Index ($VIX, +15.29%) scurrying higher once again and avoided - for the bears' benefit - a VIX drop below the 16 level.  That's been a threshold support level that's held in each of the two prior bear markets.  Caterpillar (CAT, -4.08%) really weighed on the Dow Jones, as did several other components that lost 2% or more (IBM, HD Read More 

Trading Places with Tom Bowley

Financials Continue To Bounce Off Support, Market Choppy

by Tom Bowley

Market Recap for Wednesday, October 17, 2018 There was a lot of back and forth action in our major indices on Wednesday.  For instance, in the span of just 2 1/2 hours, the Dow Jones lost more than 300 points, then recovered them all, moving slightly into positive territory.  After a couple hours of sideways, less volatile action, the Dow Jones began to weaken and finished lower by 92 points despite a solid last 15 minute finish that nearly cut the loss in half.  Despite Tuesday's big rally and yesterday's mixed action, the bears are currently in control of the action: Read More 

Trading Places with Tom Bowley

Dow Jones Gains Over 500 On Strong Earnings

by Tom Bowley

Market Recap for Tuesday, October 16, 2018 Wall Street welcomed a trend day to at least temporarily pause the violent downtrend we've experienced the past couple weeks.  A trend day typically starts with a gap higher and then gains are extended throughout the session.  We clearly saw that as the Dow Jones finished with a gain of 547 points, or 2.17%.  Money rotated back towards aggressive areas of the market as the NASDAQ outperformed, climbing a very solid 215 points, or 2.89%.  The small cap Russell 2000 ($RUT, +2.82%) outperformed the benchmark S&P 500 (+2.15%) Read More 

Trading Places with Tom Bowley

The Yield Spread (Curve) Is Worrisome For Banks

by Tom Bowley

Market Recap for Monday, October 15, 2018 A late afternoon selling binge pushed our major indices into negative territory by the close, with the lone exception being the small cap Russell 2000 ($RUT), which avoided a relative breakdown vs. the benchmark S&P 500.  Small caps have been languishing and significantly underperforming large caps since the start of September as you can see from the following chart: Despite yesterday's small cap rally, you can see that the RUT has broken beneath its 50 week SMA for the first time since the early-2016 swoon.  On a relative basis Read More 

Trading Places with Tom Bowley

History Says To Watch Those 60 Minute Charts For Bottoming Clues

by Tom Bowley

Market Recap for Friday, October 12, 2018 Finally, Wall Street saw buying pressure to end a trading session.  That certainly felt great psychologically, although as I point out below, I doubt that the short-term bottom is in.  It's possible, but the odds favor another short-term plunge.  For now, however, let's rejoice in the market's Friday reversal.  All of our major indices finished the day in positive territory, but it was quite an effort for the Russell 2000 small cap index to turn positive.  The RUT performed horribly on a relative basis throughout the Read More 

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