Invest in SKF??

Question

Invest in ProShares UltraShort Financials for the next few weeks? good idea?

Thanks

p.s also list any stocks you think are winners thanks.

Answer 1

SKF has been my biggest, most consistent money maker but due to our governments recently announced offer to lend money to just about anyone to keep them afloat, SKF and other short financial investments are risky.  If you are a day trader with little to no emotion, there is still money to be made there due to the very high trading volume and the rapid up and down price movement.  Unless you are very seasoned and willing to take the risk, I'd recommend you hold off on commiting to this one despite it's fantastic track record.

Answer 2

I would be careful with SKF.  Financials have been clobbered badly in recent weeks.  They may be due for a bounce and they could bounce hard on the upside.  This is a 2-x short ETF so you could get hit hard very quickly.  If you buy this right now, might want to consider using a tight stop or you could be down 15-20% before you know it.