Conclusion, Investment Implications, Strategy
The SPDR S&P Insurance ETF (KIE) is amid favorable technical / quantitative conditions to continue its recent trend of outright strenth amid relative outperformance versus the benchmark S&P 500.
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Sector & Industry Group Ideas rectangle at the top of the Research Center.
Click the table to make it larger
This table also regularly appears in our weekly Keys To This Week: Sector & Industry Groups report published on Monday mornings.
Analysis and Rationale
The upper panel of Chart 1 below plots the SPDR S&P Insurance ETF (KIE) daily since May along with its 200-day moving average, a widely-watched major trend proxy. The lower panel plots the corresponding daily relative performance of KIE versus the SPDR S&P 500 ETF Trust (SPY) along with its 63-day moving average, which we use to identify the Strategic (quarterly) trend of relative performance versus the broad market.
The green highlights in the upper panel show that KIE is in the midst of a Jun 29th major uptrend that was successfully tested on Jly 14th and Oct 3rd. The lower panel shows that KIE is also in an Aug 2nd trend of Strategic relative outperformance versus SPY, which was successfully tested on Sep 5th.
The upper panel of Chart 2 below also plots KIE daily since May, but this time with a corresponding chart of the daily total net assets invested in KIE (AUM) and their 21-day moving average in the lower panel, which we use to determine these assets’ Tactical (monthly) trend. The green highlights point out that these assets have been in a trend of monthly expansion since Sep 14th,
This combination of a bullish major trend, Strategic relative outperformance versus the S&P 500, and Tactical asset expansion indicate favorable conditions for a continuation of recent strength and relative outperformance by KIE.