ProShares UltraShort Financials ETF
) -This exchange-traded fund (ETF) seeks daily to achieve results
that are twice the inverse of the daily performance of the Dow
Jones U.S. Financial Index.
These shares are highly volatile. In March 2009, this inverse
ETF traded at over $260, and now, with financial stocks under
pressure, a "V" bottom appears to have formed.
The jump through its 50-day
has placed SKF just under the 200-day moving average, and is a
challenge to the bearish resistance line at $24, which is the
target for a trade.
Even though the immediate target is modest, there is a
possibility of a breakout above $24 if the stock market confirms
that a new phase of the bear market has begun. If that happens,
SKF could break out with $30 as its initial target.
This leveraged inverse ETF is only suitable for short-term
trading, not long-term investing. Please check with your broker
regarding possible margin restrictions.
If you have questions or comments for Sam Collins, please
e-mail him at
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