ποΈ Visualise the π½ American #Banking Sector ποΈ Rally of April 2003
π Technical Analysis π of the profitable π Sector Uptrend π in the π© KBW Bank Index βοΈ Index (BKX) and the North American Banking Sector during April 2003.
by Charles Adams
1) As It Happened: The π Sector Breakout π on 14th April 2003
Different research papers have shown that sectors represent an increasingly important component of security returns [1]. Within the financial services super-sector, the banking sector constitutes an important constituent alongside the asset management, investment, brokerage and insurance sectors [2]. As a logical result, returns across the various individual stocks within the banking sector are highly correlated and exhibit lead-lag relationships or concerted moves which can be exploited for great profit.
The KBW Bank index is one index which tracks the North American banking sector [3]. An example of the correlated sector breakout mentioned above occurred in this index on 14th April 2003, when it exhibited a bullish sector breakout:
2) Aftermath of the Sector Breakout: A Bullish π Sector Uptrend π
The result was a profitable upmove over the next few weeks.π References π
- ^ McIntosh, Sector Strategist, p.30-31.
- ^ Pring, Active Asset Allocation, p.281, p.288.
- ^ Invesco Distributors, Invesco KBW Bank ETF {Factsheet}, p.1-2.
π Bibliography π
Invesco Distributors. 'KBWB: Invesco KBW Bank ETF {Factsheet}'. Kansas City (Missouri): Invesco Distributors, 31 Mar. 2021. 2pp. https://www.invesco.com/us/financial-products/etfs/product-detail?ticker=KBWB#documents . | |
McIntosh, Timothy J. 'The Sector Strategist: Using New Asset Allocation Techniques to Reduce Risk and Improve Investment Returns'. 1st Edition. Hoboken (New Jersey): John Wiley & Sons, 2012. 226pp. ISBN: 978-1-118-17190-5. Borrow or Buy: [ amazon | biblio | worldcat | abe | isbnsearch | justbooks.co.uk | gettextbooks | goodreads | openlibrary | univ. manchester | librarything ]. Noted book. | |
Pring, Martin J. 'The Investorβs Guide to Active Asset Allocation: Using Intermarket Technical Analysis and ETFs to Trade the Markets'. 1st Edition. New York (NY): McGraw-Hill, 2006. 385pp. ISBN: 978-0-07-149159-4. Borrow or Buy: [ amazon | biblio | worldcat | abe | isbnsearch | justbooks.co.uk | gettextbooks | goodreads | openlibrary | univ. manchester | librarything ]. Noted book. |