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

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 

Trading Places with Tom Bowley

Jobs Come Up Short, But Technology And Consumer Stocks Surge

by Tom Bowley

Market Recap for Friday, May 4, 2018 For many weeks, we've seen the stock market seemingly ignore great earnings news and retreat.  Highly visible companies like Boeing (BA), Caterpillar (CAT), Intel (INTC) and Microsoft (MSFT) gained initially after blowout earnings, then stumbled after traders attempted to figure out where the after-earnings, "sell on the news" psyche might end.  Then on Friday, perhaps the biggest monthly economic report - the April nonfarm payrolls report -  disappointed, falling 27,000 jobs short of expectationsand the Dow Jones promptly Read More 

Trading Places with Tom Bowley

Banks Lead Reversal Off Major Support And UNH Could Be Ripe For A Strong May

by Tom Bowley

Market Recap for Thursday, May 3, 2018 The Dow Jones was the only major index to finish in positive territory on Thursday, but it could have been so much worse.  In the first 90 minutes of trading, the S&P 500 found itself back below 2600 and within just 14 points of its double bottom at 2581.  We've seen intraday moves beneath 2581 in 2018, but no closes below that level.  Volatility ($VIX) was on the rise, so it was very important to see buyers step up over the final five hours yesterday.  Banks ($DJUSBK) are perhaps the most important group to watch as Read More 

Trading Places with Tom Bowley

Fed Talks Inflation, Traders Head For The Hills

by Tom Bowley

Market Recap for May 2, 2018 Well, the Fed spoke and Wall Street listened.  While there weren't any dire warnings from the Fed about inflation, simply acknowledging that inflation could be returning to its target 2% rate spooked traders for an afternoon.  If you were wondering if the Fed's policy statement led to the market weakness on Wednesday, just look at an intraday chart: The S&P 500 had dropped nearly 60 points, or more than 2%, prior to bouncing into the FOMC announcement.  In fact, that bounce was exactly a 61.8% Fibonacci retracement of the prior decline Read More 

Trading Places with Tom Bowley

Technology Leads Tuesday Turnaround

by Tom Bowley

Market Recap for May 1, 2018 The Dow Jones led the early selling on Tuesday as traders were not impressed with quarterly earnings results from two pharma giants, Pfizer (PFE, -3.31%) and Merck (MRK, -1.51%).  Both were down considerably more in the morning session, but rebounded to make their respective losses a bit more palatable.  But despite the early weakness and the 6% spike in the Volatility Index ($VIX), the bulls were able to regain control of the action in the afternoon session, leading to gains across the S&P 500, NASDAQ and Russell 2000.  The Dow Jones Read More 

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