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

Bulls Open 2018 With A Party Like It's 1999

by Tom Bowley

Market Recap for Tuesday, January 2, 2018 The NASDAQ loves January and January loves the NASDAQ.  If there's one month where the NASDAQ really shines on a relative basis, it's January (see Historical Tendencies below) and that index opened the new year like it owns January.  It was a very solid day across most areas, but the NASDAQ's 1.50% push higher easily outperformed its index peers and it also enabled the index to do something it's never done before - close above 7000.  It wasn't too long ago when we wondered if the NASDAQ would ever reach those year 2000 Read More 

Trading Places with Tom Bowley

Here's One Chart That Screams BUY As We Begin 2018

by Tom Bowley

Special Note First, I'd like to wish everyone a Happy New Year!  Let's make 2018 our best yet!  Here are a couple of quick reminders: (1) If you like my Trading Places blog and you'd like to follow my articles every morning, scroll down to the bottom of this article, type in your e-mail address and click on the green "Notify Me!" button.  You'll then become a (FREE!) subscriber and my article will be sent to the email address you provide IMMEDIATELY after I publish it. As always, thanks for your loyalty and readership, it's much appreciated! Read More 

Trading Places with Tom Bowley

New Years Resolutions For Traders

by Tom Bowley

Special Note Happy New Year to all and thanks so much for your support of me and StockCharts.com in 2017 (and please subscribe at the bottom of my article - it's FREE!).  If you're not a member, your first resolution should be to become one.  There's not a better time than now, before the holiday special ends!  It's FREE to begin your one month trial.  Just keep in mind that you'll have to extend your membership with an annual extension by December 31st in order to get your two additional free months that are currently being offered.  It's a great deal and an Read More 

Trading Places with Tom Bowley

Technology Stocks Set To Lead Year End Rally

by Tom Bowley

Market Recap for Wednesday, December 27, 2017 Wednesday's action was characterized by thin volume and low volatility, normal for trading during the holidays.  Our major indices moved fractionally higher, with the Russell 2000 ($RUT) being the exception after that index fell during the afternoon session to finish slightly lower. Utilities (XLU, +0.42%) benefited from falling treasury yields and very oversold short-term conditions to log the biggest gain among sectors.  On the other end of the spectrum, the most overbought sector - energy (XLE, -0.33%) - saw a bit of profit Read More 

Trading Places with Tom Bowley

What Industry Will Lead The Stock Market In 2018? You Might Be Surprised....

by Tom Bowley

Market Recap for Tuesday, December 26, 2017 Energy stocks (XLE, +0.88%) continued their merry way higher, which really isn't surprising after the sector made a very significant price breakout above the 70 level.  With an RSI approaching the 80 level now, however, I wouldn't be surprised to see a bit of consolidation, or even profit taking, with money rotating to other areas for a bit.  Here's the current look at the XLE: Price action has been very strong and price momentum (MACD) is accelerating as well - a very bullish combination.  Pullbacks are likely to be Read More 

Trading Places with Tom Bowley

Time For Another Santa Claus Rally?

by Tom Bowley

Market Recap for Friday, December 22, 2017 The major indices all fell back slightly during Friday's pre-Christmas holiday, light volume trading session.  Materials (XLB, +0.38%) was the best performing sector, while healthcare (XLV, -0.32% and financials (XLF, -0.28%) lagged. The 10 year treasury yield ($TNX) continues to trade in sideways fashion after breaking above 7-8 month highs near 2.47%.  I'll be watching to see if the current pattern confirms an island cluster reversal, which would increase the odds of at least a short-term decline in treasury yields.  That would Read More 

Trading Places with Tom Bowley

Energy And Banks Dominate The Trading Session; All Major Indices Advance

by Tom Bowley

Market Recap for Thursday, December 21, 2017 In afternoon trading, all of the major indices except the NASDAQ appeared headed for another record all-time high close.  But a late afternoon selling bug hit Wall Street and much of those earlier gains disappeared.  The small cap Russell 2000 was able to hold onto most of its gains, but still failed to close at a record high.  The intraday high would have done it, but the chart below shows the tail left above closing resistance as the closing bell rang: Strength on Thursday came mostly from three sectors Read More 

Trading Places with Tom Bowley

Energy Breaks Out As Oil Equipment & Services Strengthen

by Tom Bowley

Market Recap for Wednesday, December 20, 2017 It's been a rough road for oil equipment & services stocks ($DJUSOI, +2.33%).  They haven't broken down below summer lows, but they also haven't kept pace with the energy sector as a whole either.  Yesterday's strength did take the group closer to key price resistance as they once again attempt to muster a lengthier rally.  Energy (XLE, +1.41%) also got a lift on Wednesday from the much more bullish exploration & production industry ($DJUSOS).  Take a look at this chart: Bull market Read More 

Trading Places with Tom Bowley

Treasury Yields Soar, On Verge Of Key Breakout

by Tom Bowley

Market Recap for Tuesday, December 19, 2017 Housing data released the past couple days has been extremely hot with the housing price index well above expectations and then yesterday housing starts and building permits both easily surpassing Wall Street consensus estimates.  This data has been expected by the stock market as price action in home construction ($DJUSHB) leading up to these reports has been straight up.  Check out the strength the past few months in the DJUSHB: There's a lot on this chart that's relevant from a technical analysis perspective Read More 

Trading Places with Tom Bowley

USX, Alcoa Lead Strong Materials Sector; Russell 2000 Breaks Out

by Tom Bowley

Market Recap for Monday, December 18, 2017 Rotation is powerful during bull markets and Monday's action was a perfect illustration.  On November 15th, both the materials sector and small cap stocks were clear market laggards, but over the past 4-5 weeks we've seen both areas gather themselves and begin another push higher to help sustain this bull market advance.  First, let's take a look at materials (XLB, +1.47%): The XLB clearly had price momentum issues, as evidenced by the negative divergence that accompanied the late October price high.  Subsequently, the Read More 

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