The ETF that is Working Today: SKF
The U.S. Financials are getting killed today, that's good news for the ProShares UltraShort Financials (NYSE:SKF) which is up 5.4%.
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The ProShares UltraShort Financials (SKF) shares have traded between $53.92 and $99.20 over the past 12 months. Today the SKF is trading at $61.98 and has bounced back 13% from its 52-week low.
The big banks stocks are under severe pressure today are leading the market lower, with J.P. Morgan Chase (JPM) down 2.7%, Bank of America (BAC) down 3.3%, Wells Fargo (WFC) off 3.8%, and Citigroup (C) down 2.3%.
Banks are getting beat up thanks to a terrible housing market and weak ADP jobs numbers. Without robust job growth, it is difficult to envision how the housing market improves, and banks already a lot of foreclosed homes. Moreover, a slowing economy could start to affect credit-card delinquencies in negative fashion.
Bottom line: The SKF is the weapon of choice today and could be for the coming weeks as U.S. Financial institutions come under fire.