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

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 

Trading Places with Tom Bowley

A Big Name Clothing & Accessories Company Provides Excellent Reward To Risk Opportunity

by Tom Bowley

Market Recap for Friday, July 6, 2018 It was a solid close to the week on Friday, especially on the tech-laden NASDAQ where that index rose 101 points, or 1.34%.  Biotechnology stocks ($DJUSBT, +3.74%) surged on news of positive trial results for Biogen's (BIIB, +19.63%) Alzheimer's drug.  Most biotechs rose in sympathy.  The Dow Jones also gained, but its advance was much less robust and continues a serious period of underperformance by this index of behemoth, multinational companies.  The underperformance of the Dow Jones relative to the NASDAQ is quite noteworthy: Read More 

Trading Places with Tom Bowley

This NASDAQ 100 Giant Flashed BUY Yesterday; History Confirms It

by Tom Bowley

Market Recap for Thursday, July 5, 2018 U.S. equities rallied on Thursday, led by the NASDAQ and Russell 2000, which gained 1.12% and 1.15%, respectively.  The Dow Jones and S&P 500 tacked on lesser gains.  Technology (XLK, +1.41%), consumer staples (XLP, +1.38%) and healthcare (XLV, +1.04%) were the leading sectors, while brewers ($DJUSDB, +2.97%), tires ($DJUSTR, +2.83%) and semiconductors ($DJUSSC, +2.67%) led all industry groups. Boeing Co (BA) and Embraer Aircraft (ERJ) inked a strategic partnership, but the market believed ERJ was the loser in the deal as it sunk Read More 

Trading Places with Tom Bowley

Is It Time For A Rally In The Worst Industry Group In 2018?

by Tom Bowley

Market Recap for Tuesday, July 3, 2018 U.S. equities started the holiday-abbreviated trading session on Tuesday quite nicely with gains across each of our major indices.  But that strength deteriorated throughout the day and, by the close, all but the small cap Russell 2000 had finished in negative territory.  The Dow Jones remains above its key price support from the first half of 2018, but also continues to fail at overhead 20 day EMA in the short-term: The red arrow points to a "death cross" where we've seen the 20 day EMA drop below its 50 day SMA.  During Read More 

Trading Places with Tom Bowley

Are Biotechs Poised To Surge? If So, Consider This Giant

by Tom Bowley

Market Recap for Monday, July 2, 2018 A brief recap from yesterday: All of our major indices climbed higher with renewed leadership from the NASDAQ and Russell 2000.  Technology (XLK, +0.89%) and utilities (XLU, +0.71%) led the action, while energy (XLE, -1.47%) was very weak.  Given the jump in crude oil prices this morning, though, I'd expect to see the XLE make another run at short-term price resistance at 77. Gambling stocks ($DJUSCA, -6.03%) held back the consumer discretionary sector (XLY, +0.14%) after Macau reported disappointing revenues.  Wynn Resorts Read More 

Trading Places with Tom Bowley

Watch Potential Channel Support On The NASDAQ 100

by Tom Bowley

Market Recap for Friday, June 29, 2018 The first half of 2018 ended on Friday in bifurcated fashion, which is fitting given that most of 2018 has seen bifurcated action thus far.  The NASDAQ gained nearly 9% in the first six months, with the Russell 2000 not too far behind, gaining more than 7%.  The S&P 500, however, saw only a 1.7% rise and the Dow Jones ended the first half of the year in negative territory as a rising dollar and trade fears sent traders scurrying out of those large multinational companies, especially those on the Dow Jones.  Caterpillar (CAT) Read More 

Trading Places with Tom Bowley

Technology And Financials Lead End Of Month Rebound

by Tom Bowley

Market Recap for Thursday, June 28, 2018 The selling episode went according to plan, with many higher risk areas taking on most of the bears' wrath.  The three worst performing sectors over the past week led the rebound on Thursday.  Technology (XLK, +1.22%), financials (XLF, +0.87%) and consumer discretionary (XLY, +0.79%) were the primary benefactors yesterday as the NASDAQ (+0.79%) paced the rally.  The XLK printed a reversing piercing candle and now looks to move higher and perhaps test its declining 20 day EMA: Note that Thursday's reversal took place at Read More 

Trading Places with Tom Bowley

Dollar Breakout Good News For Small Caps, But Rising Volatility Weighs

by Tom Bowley

Market Recap for Wednesday, June 27, 2018 Trade war fears are dominating the headlines, but U.S. Dollar Index ($USD) strength is quietly making the biggest news of all.  The rising greenback is potentially good news as it signals that the U.S. economy is humming along, and is perhaps stronger than foreign economies.  It also suggests that the relative strength enjoyed by small caps throughout Q2 2018 is likely to extend into Q3.and possibly longer.  A rising dollar does create headwinds for multinationals, however, and that's why we've seen such weak relative performance Read More 

Trading Places with Tom Bowley

Weakness In Railroads Setting Up Trading Opportunities

by Tom Bowley

Market Recap for Tuesday, June 26, 2018 Tepid gains on Wall Street allowed trade fears to subside for a day, but technical indications suggest this is likely just a temporary breather.  The Dow Jones gained 30 points on the session, while the small cap Russell 2000 and tech-laden NASDAQ produced better relative gains of 0.66% and 0.39%, respectively.  Energy (XLE, +1.26%), consumer discretionary (XLY, +0.72%) and technology (XLK, +0.40%) rebounded after rough sessions on Monday.  The XLY has been the strongest sector ETF of late and its ability (or inability) to move back Read More 

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