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Travelers ($TRV) Leads Insurance Group Higher

John Murphy | 

Insurance stocks are attracting a lot of new money into a reviving financial sector. Chart 1 shows the Dow Jones US Property & Casualty Insurance Index surging to the highest level in five years. Its relative strength line (below chart) is starting to break out to the upside. The main catalyst behind today's buying is coming from Travelers. Chart 2 shows Travelers (TRV) surging to a new record high. New records are also being hit by Ace and Chubb. As good as their performance is, many investors may shy away from buying them because they've already had a strong run. Fortunately, there's another insurance group that's starting to attract new money, but looks a lot cheaper.

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John Murphy
About the author: is the Chief Technical Analyst at StockCharts.com, an renowned author in the investment field and a former technical analyst for CNBC. With over 40 years of market experience, he is the author of numerous popular works including Technical Analysis of the Financial Markets and Trading with Intermarket Analysis. John's timely market commentary and expert analysis is available exclusively for StockCharts Members through his Market Message blog.
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