It's Not Too Late To Go Short

by Jim Woods 11/19/08

Free Trading Guides

UltraShort Financials ProShares (SKF)

Finally, there has been no more battered market sector than financials during the past year, and the suffering in this sector is, I'm sorry to say, not over yet.

That's OK, especially if you own the SKF. This levered ETF is designed to move twice the inverse of Dow Jones U.S. Financials index. Following the familiar pattern here, if the Dow Jones U.S. Financials index drops 2%, SKF will jump 4%.

Once again, the power of these ETFs was seen on Wednesday, Nov. 19, when SKF surged 21.37% in one of the worst sell-offs so far in what can now indisputably be called the crash of 2008.

Oh, and before you tell me that it's too late to move into these ETFs, remember that I've been hearing that lament for more than six months.

Sure, you might be right this time, but in my opinion, the more scrambled action taken by the federal government to "fix" the problem, the more the smart money is going to keep on shorting.

Jim Woods is a Senior Editor for OptionsZone.com. To learn more about him, read his bio here.

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