Shorting the financials has been a popular and profitable trade recently. [[SKF]] has been the vehicle many traders have used to short the financials as itÂ is double inverse etfÂ of the The Dow Jones U.S. Financials Index. This index can be tradedÂ double-long byÂ using [[UYG]].
Below are the charts of the 10 largest components of The Dow Jones U.S. Financials Index. They represent 39.02% of the holdings.
After reviewing them, I’m somewhat bullish on the technicals. Most of these appear to be set to make a run to the 200 day average, or at the veryÂ least, I think they test January highs. Although the markets will start tomorrow near overbought, I might consider some [[UYG]] for a quick trade.
Â [[BAC]] 7.08% weighting. Bullish.
Â [[JPM]] 5.63% weighting. Bullish.
Â [[C]] 5.58% weighting. Weak, but wants to run to the 50 day.
Â [[AIG]] 4.95% weighting. Working off oversold condition.
Â [[WFC]] 3.68% weighting. Bullish.
Â [[GS]] 2.95% weighting. Oversold.
Â [[WB]] 2.88% weighting. Beneath 50 day, but will challenge it again.
Â [[BK]] 2.12% weighting. Very bullish.
Â [[USB]] 2.09% weighting. Very bullish.