ProShares UltraShort Financials ETF (NYSE: SKF)–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, but now, with financial stocks under pressure, a “V” bottom appears to be forming.
On Friday, SKF closed above its 50-day moving average and the stochastic issued a buy signal.
The immediate target is modest– its bearish resistance line at $24. But if the stock market confirms that a bear market has begun, this inverse ETF could break out with $30 as its target.
This is an inverse, leveraged ETF and is only suitable for short-term trading, not long-term investing. Please check with your broker regarding possible margin restrictions.
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