Stocks to Trade Now: 12 Momentum Trades
OptionsZone Experts, May 1, 2009
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Momentum Stock #9: ProShares UltraShort Financials
By Michael Shulman
The momentum in the banks is still to the downside. This ProShares UltraShort Financials (SKF) is the double-inverse ETF for the financial sector. Translation: This ETF goes up between 1.5 and 2 percentage points for every point of decline in the Dow Jones Financial Index.
The banks all need capital long term, and the results of even wishy-washy stress tests will highlight this. And the banks, over time, will sell off.
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