Trading Places with Tom Bowley

October Begins In Record-Setting Fashion

Market Recap for Monday, October 2, 2017

It was another record day on Wall Street.  The Dow Jones, S&P 500, NASDAQ and Russell 2000 all closed at fresh all-time highs.  Wide participation is a hallmark of a bull market rally and, make no mistake, there's been wide participation on this rally.  The only disappointment on Monday was the NASDAQ 100's ($NDX) inability to join the party.  Key large cap technology names did not participate and that held back the NDX.  Materials (XLB, +1.09%), healthcare (XLV, +1.02%) and financials (XLF, +0.85%) led the rally and that leaderboard helps to explain the lack of participation of the NDX as it has no components in the materials sector and only a few financials - all in financial administration.

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The Fourth Quarter Begins With Seasonal And Technical Signals Aligning Bullishly

Market Recap for Friday, September 29, 2017

We wrapped up the third quarter on Friday with all-time highs showing up everywhere.  There was a big buying push into the close on Friday, likely in anticipation of more strength during the fourth quarter.  There was strength in most aggressive areas of the market with only utilities (XLU, -0.08%), consumer staples (XLP, -0.07%) and energy (XLE, -0.01%) finishing slightly in negative territory.  Technology (XLK, +0.68%) was the leader as the group closed at an all-time high on Friday:

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Airlines Looking To Rally In October?

Market Recap for Thursday, September 28, 2017

After early selling on Thursday, U.S. indices mostly rebounded throughout the balance of the day resulting in mostly slight gains by day's end.  Materials (XLB, +0.71%) performed quite well after nearly testing its rising 20 day EMA on Wednesday.  Financials (XLF, +0.16%) didn't see much in the way of gains, but held onto its Wednesday breakout, a bullish signal as well.

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U.S. Equities Rally As Treasury Yields Soar

Market Recap for Wednesday, September 27, 2017

U.S. stocks were lifted at least in part by rising treasury yields.  The 10 year treasury yield ($TNX) spiked 8 basis points and that represents a significant selloff in treasuries.  Those proceeds tend to be reinvested in equities and that was certainly the case on Wednesday.  The Russell 2000 ($RUT) has been on fire and it rose nearly 2% in another emphatic relative strength statement.  The NASDAQ gained more than 1% and both the Dow Jones and S&P 500 rose as well.  Clearly, however, the day belonged to the more aggressive stocks found on the Russell 2000 and NASDAQ.

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Bearish Seasonal Summer Period Coming To An End

Market Recap for Tuesday, September 26, 2017

Late day selling created a bifurcated U.S. market on Tuesday as small caps performed quite well ($RUT, +0.34%), while the Dow Jones finished slightly in negative territory.  Technology (XLK, +0.36%) rebounded after Monday's selling to lead most of our indices higher.  Consumer stocks also performed well with consumer staples (XLP, +0.24%) posting a decent gain.  Consumer discretionary (XLY, +0.01%) was mostly flat, but outperformed the other six sectors.  Materials (XLB, -0.44%) was the weak link, but after very solid gains this month, it was entitled to a little profit taking.  Here's the current chart for the XLB:

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Technology Slumps As Facebook Falls On Heavy Volume

Market Recap for Monday, September 25, 2017

Technology (XLK, -1.18%) was the only real problem on Monday, but it was a big problem.  Mobile telecommunications ($DJUSWC) and internet stocks ($DJUSNS) were the big losers with the latter slammed by Facebook (FB), which dropped nearly 5% on extremely heavy volume.  There's an interesting weekly chart on FB below in the Sector/Industry Watch section.  Here's the current look at the XLK:

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Russell 2000 Tests Key Resistance, Primed To Lead In 4th Quarter

Market Recap for Friday, September 22, 2017

Friday was a bifurcated kind of day on Wall Street.  We saw a small loss on the Dow Jones, while there were slight gains on the other major indices.  The Russell 2000, in particular, saw relative strength and gained nearly 7 points to finish at 1450.  That's a big level of price resistance as you can see below:

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Taking A Look At Near-Term Downside Risk For The S&P 500

Market Recap for Thursday, September 21, 2017

We are in one of the most bearish historical periods of the year and I've provided a bit more information about it in the Historical Tendencies section below.  I'm pointing this out because equities took a break on Thursday and futures are down slightly this morning.  We could be in for more short-term weakness and I've identified key support levels to watch on the S&P 500 in the Current Outlook section below.

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Railroads, Transports Lead Dow Jones To 6th Consecutive All-Time High

Market Recap for Wednesday, September 20, 2017

It was another stellar day for industrials (XLI, +0.73%) as this sector led the Dow Jones to a 6th consecutive record closing high.  The gains have been fairly slow and methodical, but that's how bull market advances work.  They tend to occur very slowly in boring fashion as volatility ($VIX) drops day after day.  After the VIX closed at 12.23 on September 5th, it's dropped nearly every day and closed yesterday at 9.78.  It's rare to see the VIX below 10 historically so take note of this lack of expected volatility ahead.  It's flashing a very bullish signal.

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