SKF (UltraShort Financials) Overbought?

Posted by Investing Freak on March 06, 2009
General

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)

skf-1003bb-march062009

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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