Insurance Sector Overview (video)

This video covers the 10 largest components of the KIE (SPDRs KBW Insurance Index ETF) by market capitalization (not the actually top ten components of the ETF, which uses a different methodology other than a pure market cap weighting). My reason for selecting the 10 largest components of the KBW Insurance sector was to make the case that I was not cherry picking the most bearish looking chart patterns out of the KBW Insurance Index, rather to point out the fact that nearly, if not all, of the top 10 largest components of the sector (by market cap) have all set up in what appears to be clearly bearish chart formations on the daily through weekly time frames.

Although these are not official trade ideas, all ten charts (plus KIE & XLF) that are covered highlight key trendlines, moving averages, and horizontal support & resistance levels, including possibly short entry criteria as well as downside price targets. For those wishing to skip ahead to the analysis of a particular chart, they are discussed in following order: KIE; XLF (and then KIE briefly once more); AIG; MET; PRU; ACE; TRV; MMC; AFL; AON; ALL; and CB (one of the more promising swing short candidates). As these are the largest, mega-cap names in the insurance industry, these stocks all have excellent liquidity, a plus when trading, especially on the short-side.

Aug 1, 2014 3:08pm|Categories: Equity Market Analysis|Tags: , , , , , , , , , , , |Comments Off on Insurance Sector Overview (video)