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

This Might Very Well Be The Best Investment Over The Next 6-12 Months

by Tom Bowley

Market Recap for Tuesday, February 13, 2018 The U.S. stock market settled down on Tuesday, trading in a much narrower range, and finished with gains across its major indices for the third consecutive day.  While it was good to see the market stabilize after such panicked selling, there remains critical overhead resistance that must be negotiated before a more meaningful rally can occur.  Let's look at the S&P 500, for instance: The rally the past two sessions has enabled the S&P 500 to test its first key Fibonacci retracement level (38.2%) at 2661.  Note that the Read More 

Trading Places with Tom Bowley

Apple Rebounds, Leads Technology Higher As Wall Street Gains For Second Straight Day

by Tom Bowley

Market Recap for Monday, February 12, 2018 Wall Street saw more gains on Monday, continuing the strength we saw late during the Friday session.  Most of the strength, however, came during the morning session as the benchmark S&P 500 hit 2660, rising 130 points or approximately 5%, off the intraday low on Friday afternoon.  That buying momentum did appear to slow Monday afternoon, though, so I'd like to see short-term gap support hold: The close on Friday was just below 2620.  If we fall below that level, we'll likely see the PPO drop beneath centerline Read More 

Trading Places with Tom Bowley

U.S. Equities Recover, Stocks To Consider On A Rebound

by Tom Bowley

Market Recap for Friday, February 9, 2018 For the first time in 18 months, the Dow Jones, S&P 500 and NASDAQ all closed out a week beneath their rising 20 week EMAs.  After not seeing a meaningful pullback (more than 3%) for well over a year, our major indices have all given up 10%+ in the past couple weeks, although each of the major indices rallied late last week to cut into those losses.  We rallied strongly in the final two hours on Friday as bargain hunters couldn't pass up their first opportunity to buy stocks deeply discounted. Read More 

Trading Places with Tom Bowley

A High VIX Means Irrational Market Swings

by Tom Bowley

Market Recap for Thursday, February 8, 2018 For now, forget about the strong earnings season that we just witnessed.  Also, forget about bond yields rising, which I view as a very bullish development generally-speaking as it allows money to rotate from the more defensive bond market to the more aggressive equity market.  What makes rising bond yields bearish is a discussion for another day, but rising from all-time lows is not a bad thing in my view so long as it accompanied a strengthening economy. At this exact moment, none of the above matters.  It's all Read More 

Trading Places with Tom Bowley

Copper Prices Remain In Strong Uptrend And That's Bullish For The S&P 500

by Tom Bowley

Market Recap for Wednesday, February 7, 2018 With the exception of a fractional gain in the small cap Russell 2000, late day selling resulted in losses on each of our major indices.  The Dow Jones spent much of the day in positive territory and sported a 270 point gain with less than a half hour to the close, but that's when we saw increased selling pressure right up to the closing bell.  The NASDAQ  100 ($NDX) showed relative weakness on the day as many of its biggest components - AAPL (-2.14%), AMZN (-1.81%), FB (-2.77%), GOOGL (-2.68%) and MSFT (-1.88%) - finished Read More 

Trading Places with Tom Bowley

I'll Step Out On That Limb, The Bottom Is In

by Tom Bowley

Market Recap for Tuesday, February 6, 2018 Volatility is the name of the game right now and big swings - both up and down - should be expected in the near-term.  Yesterday was the bulls' turn as our major indices rallied back, led by the Dow Jones' 567 point gain.  There was early selling to add on to the Monday afternoon swoon and the Volatility Index ($VIX) forged to an intraday high well into the 40s, a historical level where we've seen major S&P 500 bottoms print.  Therefore, I believe the S&P 500 trading range has now been established.  Here it is: Read More 

Trading Places with Tom Bowley

Look To VIX To Call Market Bottom

by Tom Bowley

Market Recap for Monday, February 5, 2018 What a day and especially what a final hour!  It was very reminiscent of selling episodes in 2008 where our major indices were losing a percent every few minutes.  From a bullish perspective, there's little defense from panicked selling other than to be in cash and wait out the mayhem.  Selling was everywhere.  The Dow Jones was down more than 1500 points during the final hour yesterday, but incredibly volatile action saw hundreds and hundreds of points gained and then lost in that final 60 minutes.  It was a roller Read More 

Trading Places with Tom Bowley

Stocks Slammed, Futures Lower; Here's A Possible Support Level

by Tom Bowley

Market Recap for Friday, February 2, 2018 It was an ugly day on Wall Street.  In fact, it was the ugliest day on Wall Street since June 24, 2016, when the Dow Jones last fell more than 600 points.  Friday's drop was 665 points and the technical damage was obvious.  The volume was very heavy and the rising 20 day EMA was lost for only the second time since September.  That last time, in mid-November, it was a close slightly beneath the 20 day EMA and the very next day the Dow recovered and it's been trading above its 20 day EMA ever since.  Now that the 20 day Read More 

Trading Places with Tom Bowley

AAPL, AMZN And GOOGL Report Results; Futures Tumble

by Tom Bowley

Market Recap for Thursday, February 1, 2018 We saw a lot of bifurcation in the market on Thursday.  The more aggressive NASDAQ and Russell 2000 rebounded and finished in positive territory, while both the Dow Jones and S&P 500 fell on the session.  Four sectors finished higher, while five retreated. Among the winners on Thursday, energy (XLE, +1.03%) rebounded after closing beneath its 20 day EMA the previous two days.  It was the first time we've seen the XLE close below its 20 day EMA on consecutive days since late November.  Financials (XLF, +0.94%) also Read More 

Trading Places with Tom Bowley

U.S. Equities Bounce; Small Caps Face Stiff Test

by Tom Bowley

Market Recap for Wednesday, January 31, 2018 Following the heavy selling on Tuesday, the bulls were just hoping to stop the bleeding.  I'd say they had some success as the Dow Jones, S&P 500 and NASDAQ all finished in positive territory.  Overall action was bifurcated, however, as small caps ended the session in negative territory.  In pre-market action, the latest ADP employment report showed that strength in jobs continues.  In January, the ADP report came in at 234,000 jobs, easily outpacing the 195,000 consensus estimate.  That generally bodes well for the Read More 

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