The insurance industry group is bullish, as money flows into the financial sector (XLF). Since Friday, an apparent shift from growth to value stocks continues to unfold. Insurance companies, asset managers, brokers, investment services and banks all show actionable momentum.
Assured Guaranty Ltd. (AGO) is moving into a buy zone. Recent pivot highs are 42.04 and 42.63, SOTEMA is starting to tilt upward as price action flags into the rising 9ema. VBP support is significant at 40.60. Significant volume suggests institutions are buying the stock. A break above the current flag would signal bullish continuation.
Fundamentals are noteworthy as well, with earnings increasing 140% quarter to quarter. The company reported 63.5% profit margins in the recent reporting period. As the homebuilders industry group improves, property casualty and title insurance companies recieve increasing investor attention.
Watch List – Insurance
Additional names in this industry group are on our radar as well. Fidelity National Financial (FNF) is in the same group, providing title insurance to the building and real estate industry, Note the rhythmic moves from the bullish SOTEMA. Price rebounds higher from the 9/20ema each time the stock pulls back. RSI is moving higher, together with stochastic.
Look for a follow through day for entry and use the TD setup to measure conviction. Stops should be placed under any flags that appear during or shortly after the Opening Range (9:30am ~ 10:00am), then look for follow through and conviction buying to resume.
AIG is on the weekly watchlist, showing signs of an imminent breakout.