SKF (UltraShort Financials) Overbought?
I hope you saw my post about my February performance. Most of my gains were thanks to shorting the financial sector via SKF.
I have still kept an eye on the ETF after selling it and is now is extremely overbought on many levels. I had a target of $250-255 for it but I did not hold my shares past $200. Now that my target has been reached I am looking for SKF to come back down to earth, I am looking for at least $182-186 range.
With the market crashing down so fast there is not much incentive to go more short as I am sure SEC has plans for a no shorting rule or at least something to stop the bleeding. That concludes this post and I will rest my case by providing you the chart which I am basing my case on.
Below I am attaching a chart showing the RSI being overbought but also SKF itself going over the Bollinger bands that I use.
If you are looking to buy into SKF (besides trading it for quick scalps) then either stay away from it or just take the chart into consideration. (Click to Enlarge)
As always, I merely post my opinions on here so I am not responsible for anyone's financial decisions.
Have a good day,
-K
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March 18th, 2009 - 23:05
Hi, I shorted SKF from 237 and exited in stages 189, 140, 137
March 20th, 2009 - 10:46
very nice Joe. I can’t short outright because I don’t want to be on margin but I sometimes do go long using UYG (not the same thing I know)
I’m glad you made money shorting this great beast.
I hope my chart helped a bit.
-K