Insurers, Banks Acting Well

Leading financials continue to act
well, a good sign for a market, which has combined positive performance in the
Nasdaq and the rate-sensitive stocks. 

No. 2 U.S. auto and home insurer
Allstate
(
ALL |
Quote |
Chart |
News |
PowerRating)
Thursday reported first-quarter profits rose a
better-than-expected 19 percent. Competing car insurer Progressive
(
PGR |
Quote |
Chart |
News |
PowerRating)

released Street-beating earnings late on Wednesday.

SouthTrust
(
SOTR |
Quote |
Chart |
News |
PowerRating)
, a Birmingham,
Ala.-based bank holding company, headed higher after its directors Wednesday
voted a two-for-one stock split payable May 11 shareholders of record April 30,
2001.

All stocks, of course, are risky. On
any new trade, be sure to limit your position size and set a protective price
stop where you will sell your buy or cover your short to protect yourself
against severe losses. For an introduction to combining price stops with
position sizing, see my lesson,
Risky Business
.