The DJUSIP (Dow Jones US Property and Casualty Insurance sector has been on fire lately and after a brief pause I expect this sector to turn back up and extend it’s recent run up. According to the RSI it’s has displayed Superior strength and that is not to be ignored. It also means that before this sector will find a top we’ll have to carve out some negative divergence so expect this sector to rally back to September highs and possibly beyond before momentum wains.
Three stocks I like are seen below the index: TRV ALL, CB. As the index pulls back to the 40-50 level look for this sector to find a bottom and these stocks to rally.