The ProShares UltraShort Financials (NYSE:SKF) rallied 3.67% today as the banking sector took a hit. But can it sustain the momentum? The SKF is an ETF (Exchange Traded Fund) that shorts bank shares with double the leverage. On Wall Street only the professional traders classify the SKF as a long term DE, or Dangerous Equity, because these peculiar stocks do not rely on underlying companies. Over the long term they do not track the performance of the 200% inverse Dow Jones Financial Index either. When the bank stocks that this ETF aims to track begin to rise, the shareholders of this fund will pay the toll. The bank stocks have been brutally beaten, and with the banking sector oversold and improving, there's no telling what devastating consequences it could have on the SKF.
Read Kibbens' full report here.
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