Trading Places with Tom Bowley

FCX Confirms Inverse H&S Breakout; Materials Dominate

Market Recap for Tuesday, January 24, 2017

The S&P 500 and NASDAQ both closed at new all-time highs on Tuesday as basic materials (XLB, +2.58%) soared.  Freeport-McMoran (FCX) was huge performer in the group and FCX is featured below in the Sector/Industry Watch section.  But other areas of materials did very well also.  Take, for instance, the Dow Jones U.S. Commodity Chemicals Index ($DJUSCC), which gained 3.25% on the session.  DuPont (DD) and Dow Chemical (DOW) led the charge in this space with both stocks breaking out.  Here's a look at the current technical outlook for the index:

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Internet Stocks Jump, Threaten Breakout

Market Recap for Monday, January 23, 2017

Materials (XLB, +0.20%) and technology (XLK, +0.18%) were the leading sectors on Monday as our major indices traded in negative fashion throughout the day.  The finish, however, was fairly strong as the S&P 500 finished in the upper end of its trading range.  The S&P 500 managed to hold onto its 20 day EMA with an intraday low beneath it.  Take a look:

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Computer Services Latest Technology Group To Break Out

Market Recap for Friday, January 20, 2017

Basic materials (XLB, +0.89%) led yet another U.S. stock market rally on Friday as the Dow Jones gained close to 100 points to once again approach what could become its first all-time closing high above 20000.  After Friday's gain, the Dow Jones needs another 173 points, or less than 1%, to clear that milestone.  Aiding that advance in the Dow Jones and, more specifically, the basic materials sector was specialty chemicals ($DJUSCX).  The DJUSCX printed the right side of a cup as you can see below:

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Dollar And Gold Appear To Be Reversing Trends At Key Levels

Market Recap for Thursday, January 20, 2017

The industrial sector (XLI, +0.73%) was the only sector to finish in positive territory as railroads ($DJUSRR) broke out on massive volume Thursday.  CSX Corp (CSX) soared more than 23% after Canadian Pacific's (CP) CEO Hunter Harrison announced he was quitting at CP and had interest in being hired at CSX.  A Morgan Stanley analyst quickly upgraded CSX and the railroads took off.

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Consumer Stocks Strengthening To Open 2017

Market Recap for Wednesday, January 18, 2017

Financials (XLF, +0.83%) were back on track Wednesday as mortgage finance ($DJUSMF), life insurance ($DJUSIL), investment services ($DJUSSB) and banks ($DJUSBK) led the equity charge.  It was a bifurcated day with the Dow Jones retreating, but the S&P 500, NASDAQ and Russell 2000 all finished higher - with the latter two aggressive indices outperforming again.  On the daily chart, the NASDAQ 100 looks the best technically with its recent breakout and strong momentum.  Have a look:

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Tobacco Smokes On Tuesday To Lead Consumer Staples

Market Recap for Tuesday, January 17, 2017

Money rotated towards defense on Tuesday as our major indices saw a day of profit taking.  The small cap Russell 2000 was hit particularly hard, dropping 1.44%.  But all of the key indices were lower as the banks' failure to break out on heavy volume Friday came back to haunt them yesterday.  The Dow Jones U.S. Banks Index ($DJUSBK) tumbled 3.36% in what was easily their worst day of trading since the huge run up began in early November.  Take a look at the short-term technical damage inflicted:

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Is The Market Topping Or Just Starting?

Market Recap for Friday, January 13, 2017

Friday may have seemed like a ho-hum kinda day as the Dow Jones actually finished with a loss for the session.  But there was significant strength in both the more aggressive NASDAQ and Russell 2000, not to mention that the four sector leaders were financials (XLF, +0.56%), industrials (XLI, +0.38%), consumer discretionary (XLY, +0.37%) and technology (XLK, +0.30%).  I love days where these four sectors lead the market.  Making things even more bullish was the NASDAQ's breakout to another all-time high.

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Bank Profits Soar, Travel Stocks Ready To Fly?

Market Recap for Thursday, January 12, 2017

Healthcare (XLV, +0.10%) and utilities (XLU, +0.08%) finished in positive territory and provided sector leadership on Thursday, but the remaining sectors and all of our major indices finished the day in negative territory.  Financial stocks (XLF, -0.85%) performed worst as aggressive components like banks ($DJUSBK) and life insurance ($DJUSIL) struggled while the safer REIT stocks provided the only strength in the sector.

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Dollar Weakness Aiding Gold And Silver.....For Now

Market Recap for Wednesday, January 12, 2017

The U.S. Dollar Index ($USD) fell for the fourth time in the past six trading sessions after sideways consolidating for a couple weeks prior.  This hesitation and recent profit taking has provided fuel for a rebound in gold ($GOLD) and silver ($SILVER) prices.  I believe this sudden turn will be short-term in nature and that the longer-term trends in play will prevail.  For now, however, you can see the inverse correlation from the chart below:

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Airlines Jump On Lower Crude Oil Prices

Market Recap for Tuesday, January 10, 2017

It was another bifurcated market day on Tuesday, but under the surface there was much more bullishness than on Monday.  For one, six sectors rose instead of one.  Secondly, all of the aggressive sectors gained ground, led by industrials (XLI, +0.42%) and consumer discretionary (XLY, +0.36%).  Healthcare (XLV, +0.35%), the hottest sector in 2017 thus far, extended its winning streak to six consecutive sessions, but may have hit a short-term wall of resistance putting its winning streak in jeopardy.  Take a look:

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