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

Toys Have Been Hot, But Don't Ignore This Warning Sign

by Tom Bowley

Market Recap for Monday, July 23, 2018 Financials (XLF, +1.38%), especially banks ($DJUSBK, +1.86%), led Wall Street on Monday as the rising 10 year treasury yield ($TNX) provides hope for increasing profits in the quarters ahead for this influential industry group.  There's a very strong and tight positive correlation between these two, highlighted on the following chart: The recent strength in the DJUSBK has resulted in a solid breakout of a bullish wedge pattern.  This breakout has accompanied a surge higher in the TNX.  This once again underscores the positive Read More 

Trading Places with Tom Bowley

This Small Cap Healthcare Stock Is My Pick Again

by Tom Bowley

Market Recap for Friday, July 20, 2018 Software ($DJUSSW, +0.86%) led once again on Friday, thanks in large part to another impressive quarterly earnings report from technology (XLK, +0.03%) giant Microsoft Corp (MSFT).  It was a fairly narrow technology advance as software and internet ($DJUSNS, +0.25%) were the only two technology industries to gain ground.  In fact, leadership from Friday came in the form of consumer staples (XLP, +0.61%), which benefited from a powerful rally in tobacco stocks ($DJUSTB, +2.84%).  Philip Morris (PM, +4.22%) surged to close at its highest Read More 

Trading Places with Tom Bowley

Financials Appear Poised To Regain Their Leadership

by Tom Bowley

Market Recap for Wednesday, July 18, 2018 We were mostly higher on Wednesday, although gains were slight.  One exception was the NASDAQ, which finished less than one point lower.  Otherwise, we saw green.  Despite mostly higher prices, leadership really came from just two sectors - financials (XLF, +1.60%) and industrials (XLI, +1.10%).  It's been awhile since we talked about leadership from these two sectors as the 10 year treasury yield ($TNX) has consolidated after a major run higher to open 2018.  Negative trade headlines have also impacted industrials in a Read More 

Trading Places with Tom Bowley

Consider This Materials Stock That Just Broke Out From Bullish Inverse Head & Shoulders Pattern

by Tom Bowley

Special Note I will be on a short mini-vacation beginning Friday, July 20th.  Therefore, I will not be writing a Trading Places blog article that day.  I will be back on Monday, however, with my latest recap and thoughts on the stock market.  If you enjoy my blog, please subscribe at the bottom of this article by typing in your email address and clicking the green "Subscribe" button.  You'll then receive my blog articles via email as soon as they're published!  Thanks for your support and happy trading to all! Market Recap for Tuesday Read More 

Trading Places with Tom Bowley

Netflix Slammed After Missing Revenue And Subscriber Estimates

by Tom Bowley

Market Recap for Monday, July 16, 2018 The Dow Jones saw buying late in Monday's session, pushing this index of giants into positive territory.  Leadership was clear.  Large money center banks performed well and JP MorganChase (JPM) was easily the best perfoming Dow Jones stock, gaining nearly 4%.  On the S&P 500, banks dominated as well with 5 of the top 8 performing S&P 500 stocks in the banking space, led by Bank of America (BAC), JPM, and Citigroup (C).  Banks have done a nice job of holding key price support and now are challenging overhead Read More 

Trading Places with Tom Bowley

Newest Dow Jones Component Leads Market Higher

by Tom Bowley

Market Recap for Friday, July 13, 2018 The Dow Jones moved back above 25000 and the S&P 500 cleared 2800 for the first time since February 2nd on the backs of two unlikely heroes.  Walgreens Boots Alliance (WBA), the newest member of the Dow Jones,  and Walt Disney (DIS) gained 2.02% and 1.62%, respectively, to power the Dow Jones higher.  The latter made a significant breakout in the process as broadcasting & entertainment ($DJUSBC) are showing signs of significant strength: The increasing volume to accompany the DIS move higher in June is encouraging Read More 

Trading Places with Tom Bowley

Internet, Software Break Out To Lead NASDAQ To All-Time High

by Tom Bowley

Market Recap for Thursday, July 12, 2018 Those looking for a bear market to develop were dealt a serious blow on Thursday as the NASDAQ forged to yet another all-time high.  The Russell 2000 was on the verge of doing so earlier this week as it reached an intraday all-time high.but small caps couldn't sustain the strength into the close.  The NASDAQ held it into the close, actually accelerating its gains into the close and did so on the heels of two familar industry groups - internet ($DJUSNS, +2.37%) and software ($DJUSSW, +2.2%).  These two have shown super Read More 

Trading Places with Tom Bowley

Trade Headlines Spook Traders, But Weak Energy Sector Remains Bullish

by Tom Bowley

Market Recap for Wednesday, July 11, 2018 Utilities (XLU, +0.90%) moved higher in an otherwise down day, highlighted by the latest trade headlines in which the U.S. announced another $200 billion in Chinese imports to be subject to a 10% tariff.  While the initial reaction was obviously negative, the major U.S. indices did hold up well after the opening bell, most likely due to a Volatility Index ($VIX) that had drifted lower to 12.50 over the past two weeks.  Stocks tend to hold up much better to bad news when the VIX is low.  I view it as a signal that the market is Read More 

Trading Places with Tom Bowley

Stocks Reach Key Resistance, Could Be Poised For Selling

by Tom Bowley

Market Recap for Tuesday, July 10, 2018 The good news from yesterday is that the Russell 2000 hit an intraday all-time high at 1708.56, edging out intraday highs from June 20th and 21st.  The bad news?  Sellers took over from there.  The record took place in the opening minutes on Tuesday, then the reversal took place.  Here's a 10 day, 10 minute chart that shows the slide in small caps after the opening bell: This is noteworthy because the small cap Russell 2000 has been the leading index in 2018, along with the NASDAQ.  Hitting a key high Read More 

Trading Places with Tom Bowley

Rising Dollar Will Provide Further Leadership In Small Caps

by Tom Bowley

Market Recap for Monday, July 9, 2018 In the famous words of Yogi Berra, it was "deja vu all over again" as financials (XLF, +2.29%) and industrials (XLI, +1.86%) returned to the top of the sector leaderboard.  Life insurance ($DJUSIL, +2.78%) and banks ($DJUSBK, +2.67%), major historical beneficiaries of rising interest rates, soared.  Was it a case of simply being oversold and bouncing off support?  Or was it the start of a significant uptrend?  I'm casting my vote for the former.  While the short-term charts look rather bleak with mostly downtrending Read More 

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