The Short End of the Stick (NYSE: SKF)

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.

Is it Time to Short the Short? (NYSE: SKF)

The ProShares UltraShort Financials (ETF) (NYSE:SKF) has been a serial underperformer especially since bank stocks are down considerably. If you think bank stocks are ready to roll as dividends may be on the horizon, then it's time to get out of the SKF and possibly consider shorting it. The stock is down over 29% year to date, which is unexpected to most investors as bank stocks are down as well. The ETF is supposed to track the inverse performance of the Dow Jones Financial index by 200%. However due to daily rebalancing the long term prospects seem bleak.

To read Kibbens' full report click here.