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

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 

Trading Places with Tom Bowley

Consumer Discretionary Leads And Remains On A Very Bullish Track

by Tom Bowley

Market Recap for Wednesday, April 4, 2018 Welcome back consumer stocks!  One day certainly doesn't make a fresh new trend, but it's been awhile since consumer stocks led a rally.  Consumer discretionary (XLY, +1.84%) and consumer staples (XLP, +1.56%) were atop the sector leaderboard on Wednesday as our major indices rallied throughout the session after another trade war-related scare at the open.  China announced new tariffs against U.S. products and futures tumbled several hundred points as a result.  We threatened yet another short-term breakdown, but this time Read More 

Trading Places with Tom Bowley

A Volatility War Has Been Declared

by Tom Bowley

Special Note I typically post a blog article every day that the U.S. stock market is open.  If you'd like to receive my blog articles as soon as they're published, you can subscribe (for FREE) by scrolling to the bottom of this article, typing your email address and clicking the "Subscribe" button. And if you ever have any comments on my articles, feel free to send me an email at "tomb@stockcharts.com". Thank you! Market Recap for Tuesday, April 3, 2018 Everyone is talking about a trade war and how that might impact the U.S. markets going forward Read More 

Trading Places with Tom Bowley

U.S. Stocks Slide As S&P 500 Prints Double Bottom

by Tom Bowley

Market Recap for Monday, April 2, 2018 It was a big down day on Wall Street with eight of nine sectors down 2% or more.  Only the defensive utilities (XLU, -0.77%) were able to minimize its losses, with the more aggressive consumer discretionary (XLY, -2.82%) and technology (XLK, -2.38%) hit much harder.  The Dow Jones tested its low from a week earlier, while the benchmark S&P 500 managed to close at 2581, the same low it reached in early February: This certainly doesn't guarantee we'll see higher prices near-term, but it is an area where the S&P 500 Read More 

Trading Places with Tom Bowley

Energy Bounces Off Of Rock Solid Support......Again

by Tom Bowley

Market Recap for Thursday, March 29, 2018 The energy ETF (XLE, +2.11%) surged off of key price support at 66.00 and there's reason to believe that this rally could last a bit longer.  Crude oil prices ($WTIC) outperformed the XLE during the month of March and we could see the XLE play a bit of catch up in April.  Here's the chart: The red arrows highlight the difficulty that the XLE has had negotiating the 69-70 price resistance zone.  A close above 69.50 would be bullish as not only would it clear price resistance, but it would also clear its 50 day SMA for the first Read More 

Trading Places with Tom Bowley

Wednesday's Reversal In NASDAQ 100 Volatility Gauge Could Signal End Of Selling

by Tom Bowley

Market Recap for Wednesday, March 28, 2018 The U.S. stock market settled down on Wednesday and that could be very good news for the bulls.  High volatility ($VIX) has stunned equity traders the past two months after a 15 month period of little volatility.  But on Wednesday, the VIX fell more than 8% from its intraday high as the Dow Jones traded in a fairly narrow 300 point range throughout much of the day.  I say "fairly narrow" range from a relative perspective as the Dow Jones has had much larger 500-750 point intraday ranges in recent sessions. Read More 

Trading Places with Tom Bowley

FAANG Stocks Slammed, NASDAQ Plummets

by Tom Bowley

Market Recap for Tuesday, March 27, 2018 I've discussed since early February the difficulty in trading a market with an elevated Volatility Index ($VIX).  While returns can be awesome when you make great calls, the opposite is true when your timing is less than perfect.  Here's how the NASDAQ has performed the past four trading sessions with a VIX in the 20s: Thursday, March 22:  -178.61 (-2.43%) Friday, March 23:  -174.01 (-2.43%) Monday, March 26:  +227.88 (+3.26%) Tuesday, March 27:  -211.74 (-2.93%) Would you Read More 

Trading Places with Tom Bowley

Technology And Financials Bounce Back Strongly, U.S. Equities Surge

by Tom Bowley

Market Recap for Monday, March 26, 2018 It was an impressive rally on Wall Street on Monday.  All nine sectors advanced at least 1%.  The four aggressive sectors - technology (XLK, +3.80%), financials (XLF, +3.24%), consumer discretionary (XLY, +2.95%) and industrials (XLI, +2.42%) - were the clear leaders on the rally and this underscores the continuing strength of this bull market.  Yes, we've seen scary periods of selling, but market participants are not running for safety during rallies.  They continue to chase after the highest risk areas of the market.  This Read More 

Trading Places with Tom Bowley

Very Weak Financials Drive Dow Jones To Lowest Close in 2018

by Tom Bowley

Market Recap for Friday, March 23, 2018 All of our major indices tumbled on Friday, but none are struggling quite the same as the Dow Jones, which fell another 425 points on Friday to close at its lowest level since November 2017.  There are likely three reasons for this relative underperformance.  The first likely stems from a potential trade war.  The Dow Jones is made up of 30 of the world's largest companies and these companies do business throughout the world.  A trade war that pits China against the U.S. or one that develops into the U.S. against the world would Read More 

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