(Premium) January Financials Outlook

The Financials sector is one to watch closely, as it could be one of the best sectors in 2023. We’re maintaining our rating for now, but a break above the relative highs from 2021-2022 would likely spark an upgrade.

Insurers have shown the most relative strength, while regional banks have held the sector down. If banks can turn things around, we’d expect the sector to outperform.

Globe Life continues to head towards 138 since breaking out late last year. That target is the 161.8% Fibonacci retracement from the entire 2020 decline.

Chubb is just getting started on its own breakout. If CB is above 220, we want to own it with a target of 285.

Arch Capital has been one of the best names in the sector for the last few months, but now it’s nearing a level of potential resistance at the 161.8% retracement from the 2020 decline. If you’ve ridden this one from the breakout, now is a good time to consider taking profits.

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