Should I hold on financial inverse ETF (SKF)? Bought on Friday and loosing since.

EthanR answered one year ago …

Mona, the mistake you made was in buying SKF when it was overbought. Go to www.stockcharts.com, put the symbol SKF at the top right side, click GO, and then look at the chart that comes up. Put in the following indicators: RSI (14) and Full Stochastics. You will see that the indicators were all in overbought territory, but turning down, just about the worst time to buy.

Today, we may well get a down market, so that should help SKF. Since SKF tends to be quite volatile, you may want to get out if it goes back up today. But the overall trend for SKF will be lower over the coming few weeks. Financials have been given a large boost, and even if the overall market goes lower to retest the Friday lows, financials could remain one of the stronger sectors. So tread carefully, and always buy an ETF or stock when it is oversold, not overbought! Good luck.