πŸ“™ Table of Contents πŸ“˜
  1. 🏭 Sector Breakout πŸŽ†
  2. 🏭 Sector Up-Trend πŸ“ˆ
  3. πŸ“ References πŸ“„
  4. πŸ“˜ Bibliography πŸ“—

πŸ‘οΈ Visualise the πŸ—½ American #Banking Sector πŸ›οΈ Rally of April 2003

πŸ“Š Technical Analysis πŸ“ˆ of the profitable 🏭 Sector Uptrend πŸ“ˆ in the 🎩 KBW Bank Index ✈️ Index (BKX) and the North American Banking Sector during April 2003.

by Charles Adams

1) As It Happened: The 🏭 Sector Breakout πŸŽ† 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:

Simple Chart of the BKX First Quad as per the Dow Template. Fig.1: Sector Breakout in the KBW Bank Index (BKX) on 14th April 2003. Kindly Click to Enlarge the High-Quality Sector Rotation Chart.

The Relative Strength Comparative (RSC) also showed a bullish Positive Divergence, adding to the power of the pattern.

2) Aftermath of the Sector Breakout: A Bullish 🏭 Sector Uptrend πŸ“ˆ

The result was a profitable upmove over the next few weeks.

Simple Chart of the BKX Quad as per the Dow Template. Fig.2: Sector Uptrend in the KBW Bank Index (BKX). Kindly Click to Enlarge the High-Quality Sector Rotation Chart.

πŸ“ References πŸ“„

  1. ^ McIntosh, Sector Strategist, p.30-31.
  2. ^ Pring, Active Asset Allocation, p.281, p.288.
  3. ^ Invesco Distributors, Invesco KBW Bank ETF {Factsheet}, p.1-2.

πŸ“˜ Bibliography πŸ“—

Book Cover of KBWB: Invesco KBW Bank ETF {Factsheet} by Invesco Distributors 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 .
Book Cover of The Sector Strategist: Using New Asset Allocation Techniques 
	  to Reduce Risk and Improve Investment Returns by McIntosh, Timothy J 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.
Book Cover of The Investor’s Guide to Active Asset Allocation: Using 
      Intermarket Technical Analysis and ETFs to Trade the Markets by Pring, Martin J Pring, Martin J. 'The Investor’s 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.

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