Something Stinks at the Insurance Corral

Like many groups, insurance was highly shorted in late winter - and once momentum jumped in the group, investors betting against the group were crushed. Further helping insurance firms specifically was the government riding to the rescue (TARP), ala commercial REITs, banks, et al. [Mar 12, 2009: The Next Big Bailout Choice - Insurance]

As I scan through stocks who are looking weak for potential short set ups - I am seeing a lot of weakness in this group all of the sudden. Even the best run like Metlife (MET) or Travelers (TRV) are acting poorly. I'm not sure what this is signaling, but I am pointing it out. I know Doug Kass for one, really likes this group on the long side but I think his rationale is longer term.

Here are 6 representative charts of varying quality companies

Highest quality



Middle of Pack

Speculative

[Mar 31, 2009: Lincoln Financial Implodes, Principal Financial Cutting Salaries]


No positions