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

Looking For Seasonal Strength? Check Out This Leading Stock From A Leading Industry

by Tom Bowley

Market Recap for Wednesday, February 28, 2018 Outside of the final two hours on Wednesday, it was a fairly boring day.  We gapped higher at the open, sold off to fill the gap, and then moved back into positive territory..until the final two hours.  Selling returned in a big way and volume increased as traders decided to book profits from the latest advance and watch from the sidelines.  On the S&P 500, which fell over 30 points, or 1.11%, on the session, the key upcoming support level is in the 2690-2700 area, as identified in the chart highlighted in the Current Read More 

Trading Places with Tom Bowley

3 Takeaways From Tuesday's Renewed Selling...And Why I'd Avoid Gold

by Tom Bowley

Market Recap for Tuesday, February 27, 2018 During a day filled with renewed selling, especially in the final 10 minutes, there were 3 key takeways as far as I'm concerned.  First, the short-term uptrend appeared to have been broken at the end of the day as gap, price and 20 hour EMA support were lost on the S&P 500: Next support would be trendline support somewhere near 2730.  Loss of that level would set up another key price support test in the 2690-2700 area.  A move beneath that zone would likely trigger much more fear. Speaking of fear Read More 

Trading Places with Tom Bowley

Software Breaks Out; Semis, Computer Hardware Next In Line

by Tom Bowley

Market Recap for Monday, March 26, 2018 Monday was a very solid day for U.S. equities.  All of our major indices roared to higher levels, led by the 400 point gain on the Dow Jones Industrial Average ($INDU).  Eight of nine sectors advanced, with only the defensive utilities group (XLU, -0.30%) finishing in the red.  Technology (XLK, +1.57%) led the power surge as telecom equipment ($DJUSCT) broke to a new all-time high behind strength from QUALCOMM (QCOM).  QCOM's 5.78% rise put it within reach of a key breakout: Semiconductors ($DJUSSC) and computer Read More 

Trading Places with Tom Bowley

Looking For March Seasonal Strength? Check These Two Out

by Tom Bowley

Market Recap for Friday, February 23, 2018 After a steady diet of afternoon flops recently, our major indices soared into Friday's close, clearing important overhead resistance in the process.  All major indices finished with 1% gains or more, setting the stage for what could be a very solid week ahead.  The NASDAQ gained 1.79% to lead the charge, but there was a solid 1.60% advance on the S&P 500 as well.  All nine sectors participated in Friday's rally, a bullish sign indeed, although utilities (XLU, +2.61%) were atop the leaderboard, benefiting from a 5 basis point Read More 

Trading Places with Tom Bowley

Higher Treasury Yields Crushing Last Year's Darling - Home Construction

by Tom Bowley

Market Recap for Thursday, February 22, 2018 U.S. indices continued to tread water on Thursday, with mixed action among our major indices and sectors.  The Dow Jones posted a triple digit gain (165 points), but the more aggressive NASDAQ and Russell 2000 indices both fell fractionally.  Volatility ($VIX) subsided a bit with the VIX falling roughly 6.5% back to 18.72.  While the VIX has settled down a lot from the 50 level that we witnessed earlier in February, it remains elevated and should be respected.  Another rapid selloff remains possible and we know that during Read More 

Trading Places with Tom Bowley

FOMC Minutes Spook Traders, Equities Tumble In Final Two Hours

by Tom Bowley

Market Recap for Wednesday, February 21, 2018 Well, the U.S. stock market was humming right along..until the FOMC minutes were released at 2pm EST.  Take a look at this intraday chart on the Dow Jones and S&P 500 and I think you'll fairly quickly realize that something happened just after 2pm: I don't believe interest rate fears are spooking traders.  I think it's potential inflationary fears.  Rising interest rates are fine for the S&P 500, so long as it's because of economic strength ahead.  But if it's to combat inflation, we have a different animal Read More 

Trading Places with Tom Bowley

Walmart Results Take A Big Bite Out Of Dow Jones, Ends Winning Streak

by Tom Bowley

Market Recap for Tuesday, February 20, 2018 Selling returned to Wall Street as its six day winning streak came to an end.  The Dow Jones was easily the biggest loser as Walmart, Inc (WMT) disappointed traders with its latest quarterly earnings report and had its worst trading day in many years, dropping more than 10%.  Here's a quick look at WMT's chart: While Tuesday's selling was bad enough, the fact that WMT could not hold the top gap support level suggests the selling isn't over.  We could see a short-term bounce at any time after such big selling, but I don't believe Read More 

Trading Places with Tom Bowley

Traders Turn Defensive As Key Fibonacci Retracement Level Reached - Bearish

by Tom Bowley

Market Recap for Friday, February 16, 2018 On the surface, Friday's action didn't seem all that bad.  While there was bifurcated action, three of our four major indices did finish in positive territory.  The aggressive small cap Russell 2000 ($RUT) led the advance.  Only the NASDAQ finished in negative territory.  The benchmark S&P 500 only gained a point, but it did manage to run its winning streak of higher prices to six consecutive sessions - a period in which the S&P 500 has risen from its low of 2532 to Friday's close of 2732.  That's 200 points of Read More 

Trading Places with Tom Bowley

Grading The Current Rally - Is It Sustainable?

by Tom Bowley

Market Recap for Thursday, February 15, 2018 Selling is inevitable during bull markets.  After each leg higher, there's typically a period of selling/consolidation.  The bulls were spoiled for several months, as the bull market advance continued nearly uninterrupted.  There really hadn't been any notable selling or consolidation since the August 2016 high.  From there, the S&P 500 fell 5% over the next three months with the Volatility Index ($VIX), at its high, reaching 23 or so.  Since that November 2016 low, the rally has been fairly steady and the VIX never Read More 

Trading Places with Tom Bowley

Wall Street Shakes Off Inflation Worries, Retail Slump; Rallies For 4th Straight Session

by Tom Bowley

Market Recap for Wednesday, February 14, 2018 Wall Street sure did look like it was heading for a very rough day at 8:30am EST on Wednesday.  Very poor economic news hit traders with a 1-2 punch as the consumer price index jumped 0.5% instead of the 0.3% that everyone was expecting.  On the heels of that, we saw the worst retail sales report in 11 months.  Retail sales fell 0.3%, while consensus estimates had predicted a rise of 0.3%.  That was a double jackpot hit for the bears.  Dow Jones futures were up approximately 130 points just before the reports hit Read More 

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