Finnie Fever:

The financial group via the XLF was one of just two major S&P sectors to CLOSE in the green on the wild Fed session. It has been pretty consistent as it is also the second-best actor on a YTD basis in 2022 thus far trailing just energy. Insurance names have been behind the group’s vitality so far this year and PGR one of our favorites briefly broke above a 110 bull flag pivot Wednesday before reversing. Of course, the banks are the most followed within the space, but keep an eye on the largest holding in the XLF in BRKB which has recently bounced off the very round 300 number and rising 50 day SMA recently (for my regular readers that know my affinity for the round figures where did the Nasdaq reverse precisely Wednesday?). A huge factor within the sector for sure is interest rates and obviously, they were front and center today. Below is the chart of the TNX which has implications on credit cards rates, mortgage rates, etc. To me, this chart could be the reason why the space should have the wind at its back for the foreseeable future. And couple that with the rotation back into value-oriented areas and look for this group to shine in 2022.

This article requires a Chartsmarter membership. Please click here to join.