It's Much More Noir Than You Think

Despite Fed Chair Janet Yellen's comments this week tilting to the dovish side, Treasuries have not been too impressive in bouncing back from a late-June selloff. 

Thus, if Treasuries now give up this week's Yellen gains into the back half of July I suspect that the "Rates Trade " in equities could easily be back on, with REITs (IYR) utilities (XLU), and staples (XLP) all struggling while banks, brokers, exchanges, among others, stand to benefit. 

But even within that general trade, as we are seeing this morning with C JPM and WFC all down after earnings, the better setups may be lurking in the shadows in overlooked sectors like a film noir, rather than an in-your-face summer blockbuster for obvious, go-to plays. 

In other words, many a trader will be focused on the prominent banks. But what if the real value can be found in, say, the insurers (another group which stands to initially benefit from higher rates)? 

KIE is the sector ETF for the insurance space. And that thinly-traded ETF remains tight in price action and as a long setup. As far as something more actionable, RE is an insurer we looked at before. As you can see on the daily chart, below, RE looks better at the moment as a long setup into strength than do most banks.