Mind Your New Terrain in This Sector

Fintech upstart and insurance provide, Lemonade (LMND), which has awoken over the last seven weeks or so from a long, post-IPO sideways technical price base, is reversing higher this morning after falling about 7% last night on news of a dilutive secondary share offering (about 3 million shares with an option for more). 

In and of itself, seeing LMND flip slightly green is not exactly groundbreaking news, especially in this sort of runaway bull market where macro news flow and micro mishaps by management have routinely been shrugged off and even paved the way for the next leg higher. 

However, it is, indeed, worth noting that LMND is part of the insurance sector housed in the KIE ETF. Although Lemonade is certainly one of the new, cool kids on the block in terms of fintech, I suspect the underlying resilience to the offering speaks volumes about the resurgence of insurance (and banks) in 2021. 

Speaking of banks, we know they kick off the new earnings season at the end of this week, namely C JPM and WFC. I will be looking for similar dips to be bought throughout January in these sectors as they continue to show signs of emerging from their status as multi-quarter laggards.