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

Dollar Makes Major Breakout; What That Means For Investment Allocation

by Tom Bowley

Market Recap for April 23, 2018 A significant bullish breakout in the U.S. Dollar ($USD) occurred on Monday and the push higher is likely to just be beginning.  Before I look at possible ramifications, let's look at the chart itself: Monday's close was the USD's highest since mid-January.  A breakout could hurt performance of the S&P 500 over the next few months as a higher dollar would result in currency translation losses for multinational companies.  It could be a boon for smaller cap, Russell 2000 ($RUT) companies, however.  More on that in the Current Read More 

Trading Places with Tom Bowley

Two Bad Apples Don't Spoil The Whole Market Bunch

by Tom Bowley

Market Recap for Friday, April 20, 2018 The big news on Friday was the bond market.  The 10 year treasury yield ($TNX) closed just a tad above 2.95% and that was the highest close since late-2013/early-2014.  The TNX has climbed another couple basis points in early action this morning.  Higher treasury yields can be interpreted differently by different technicians.  For me, I believe treasury yields remain much closer to historic lows than to troublesome highs.  A strengthening economy with what has historically been incredibly low treasury yields is a very Read More 

Trading Places with Tom Bowley

Treasury Yields Spike; TNX Threatens 4+ Year High, Banks Soar

by Tom Bowley

Market Recap for Thursday, April 19, 2018 The U.S. stock market has been solid throughout April thus far, so seeing a Thursday drop of 0.57% and 0.78% on the S&P 500 and NASDAQ, respectively, shouldn't be too alarming.  And it wasn't.  But yesterday was not a day of across-the-board fractional losses.  There was major strength in some areas and serious selling in others.  One reason was the dramatic rise in the 10 year treasury yield ($TNX), which at one point rose above 2.93% and near a very important yield resistance at 2.94% - the high established earlier this Read More 

Trading Places with Tom Bowley

Bifurcated Action Doesn't Hold Back Transports, Renewable Energy

by Tom Bowley

Market Recap for Wednesday, April 18, 2018 Our major indices showed signs of tiring on Wednesday as its seasonal pre-earnings run from April 1st to April 18th concluded.  Five sectors managed to finish in positive territory, including the red-hot energy sector (XLE, +1.57%) and industrials (XLI, +1.04%).  The latter benefited from a superb showing by transports ($TRAN) as railroads ($DJUSRR) and airlines ($DJUSAR) soared on key earnings reports: We saw another bullish PPO crossover on the TRAN, similar to mid-March, but this time it's accompanied by much heavier Read More 

Trading Places with Tom Bowley

Twitter Leads Internet Group Higher; Netflix Soars On Earnings Beat

by Tom Bowley

Market Recap for Tuesday, April 17, 2018 Futures were solid heading into Tuesday's pre-market action as Netflix reported stellar Q1 results after the closing bell on Monday.  Then, on Tuesday morning, home construction ($DJUSHB) received great news as both March housing starts and building permits easily exceeded expectations.  Just before the market opened, the March industrial production report was released and it too beat expectations.  All of this set the market up for strength and the bulls took full advantage as our major indices continued their climb toward Read More 

Trading Places with Tom Bowley

Falling VIX Aiding Stocks; Watch This Resistance Zone On S&P 500

by Tom Bowley

Market Recap for Monday, April 16, 2018 Utilities (XLU, +1.37%) and materials (XLB, +1.34%) led rather odd market behavior on Monday.  The good news is that all nine sectors finished higher.  The bad news is that our most aggressive sectors struggled on a relative basis.  Financials (XLF, +0.44%) continued to suffer from an uninspired banking group ($DJUSBK, -0.03%).  Recreational products ($DJUSRP) were the weakest part of consumer discretionary (XLY, +0.75%) as that group can't quite make up its mind whether it wants to break out or break down: Read More 

Trading Places with Tom Bowley

Energy Now Sports The Highest SCTR Among Sectors

by Tom Bowley

Market Recap for Friday, April 13, 2018 U.S. stocks fell on Friday the 13th, but managed to cut intraday losses in half (or more) during the final 45 minutes of the session.  Most of our major indices lost roughly 0.50%, except for the benchmark S&P 500, which fell a more palatable 0.29%.  Six of nine sectors lost ground, including a very weak financials sector (XLF, -1.51%) after several large banks reported mostly excellent quarterly earnings results.  Banks ($DJUSBK, -2.44%) jumped higher at the open as key banking leaders like JP Morgan Chase (JPM, -2.71%) and Read More 

Trading Places with Tom Bowley

CNBC Won't Tell You When The Market Is Topping, But This Chart Will

by Tom Bowley

Note I write an article here in this blog each and every morning that the stock market is open.  It's typically published during pre-market action, between 8:30am-9:00am EST.  I've been doing it since September 2015 and I do my best to keep you up-to-date on what's truly important in the stock market.  If you'd like to make sure you receive this information timely, please subscribe below if you haven't already.  Simply scroll down to the bottom of my article, type in your email address and click the green "Subscribe" button.  My articles will automatically be Read More 

Trading Places with Tom Bowley

One Day Ahead Of 4 HUGE Bank Earnings Reports, Let's Delve Into The Group

by Tom Bowley

Market Recap for Wednesday, April 11, 2018 Well, the S&P 500 tried to clear its 20 day EMA again.  And it failed.again.  That marks the 5th consecutive day of failed 20 day EMA breakouts.  Given that futures are higher this morning, this benchmark index appears headed for a 6th consecutive test.  Here's the current view: There's been a lot of news lately regarding trade threats, missile threats, upcoming earnings, volatility, etc.  But what I'm focusing on are the technicals.  I believe the 9 year bull market remains quite sustainable so a break Read More 

Trading Places with Tom Bowley

Energy Finally Breaks Out, Fuels S&P 500 Advance

by Tom Bowley

Market Recap for Tuesday, April 10, 2018 It seems like forever, but the energy sector ETF (XLE, +3.31%) finally did it - it closed above 69.00!  Can we please say goodbye to the 66-69 trading range?  I didn't realize this until yesterday, but the XLE's SCTR is now at 78.6, trailing only technology's (XLK, +2.46%) and consumer discretionary's (XLY, +1.21%) SCTR scores of 86.2 and 85.8, respectively.  Based on the following chart, we are likely to see further relative strength in the XLE: If you pull up a long-term weekly chart and use the correlation indicator Read More 

Trading Places with Tom Bowley

Here's A Beaten Down Industry Group Where I'd Look For A 6-7% Rebound

by Tom Bowley

Market Recap for Monday, April 9, 2018 Once again, Monday was the tale of two markets.  The first half of the day was quite bullish, but it was all for naught as sellers stampeded the bulls in the afternoon session.  Our major indices finished with across-the-board gains so if you only tuned in at the close, you'd have been quite happy.  But the entirety of the trading session was not nearly so bullish as the Dow Jones finished nearly 400 points off its intraday high.  The S&P 500 traded within 2 points of its 20 day EMA before dropping 1.5% over just the final two Read More 

Trading Places with Tom Bowley

Despite Friday's Selloff, My Most Reliable Signal Remains Bullish

by Tom Bowley

Market Recap for Friday, April 6, 2018 All nine sectors fell on Friday as the Dow Jones tumbled 572 points amid more threats of China tariffs by the White House.  China has promised further retaliation if the U.S. remains adamant about imposing tariffs on China imports.  This rhetoric back and forth has escalated the "volatility war" that began in early February. As you might expect, the defensive utilities (XLU, -0.79%) and consumer staples (XLP, -1.02%) sectors were the least impacted by Friday's selloff, while industrials (XLI, -2.77%) and technology (XLK, -2.45%) absorbed Read More 

Trading Places with Tom Bowley

I Cannot Own Commodities And Here's Why

by Tom Bowley

Market Recap for Thursday, April 5, 2018 The latest recovery attempt continued into Thursday of this week, but weak futures this morning will provide yet one more obstacle for the bulls to overcome.  I'll talk more about that in the Pre-Market Action section below. In the meantime, eight of nine sectors advanced Thursday with healthcare (XLV, -0.07%) the only sector to defect.  Biotechnology stocks ($DJUSBT) were the primary culprit of weakness in healthcare as this aggressive industry group fell 1.21% on the session.  It disguised strength in other parts of healthcare Read More 

Subscribe to Trading Places with Tom Bowley to be notified whenever a new post is added to this blog!