As per yesterday’s video, SKF (-2x financial sector ETF) offers an objective long entry or start to a scale-in for shorting the financial sector. Unadjusted price targets on the daily chart below with stops in line with one’s preferred target(s). Daily chart below.
I prefer SKF over FAZ (-3x/short financial sector ETF) for this trade as the 200% leverage is less prone to decay than the 300% ETF should the financials grind around for some time while pounding out a top. Basically, leveraged ETFs can provide returns in excess of the move of the underlying index during relatively unidirectional (mostly straight up or down) trends (rallies & corrections) but tend to suffer from decay during periods of a lot back & forth red & green closes. A detailed explanation of how the leveraged ETFs can work for or against your position can be viewed here.