Financials Looking Overbought

Apr. 3.09 | About: ProShares UltraShort (SKF)

Financial stocks have had a huge run up over the past 4 weeks. They have come off their 52 week lows and some have tripled in value.

While I do not believe that financial stocks are going back to their 52 week lows; I believe that financial stocks are due for a pullback. My first move for Friday is to pick up some shares of the UltraShort Financial ETF (NYSEARCA:SKF).

This ETF just hit a new 52 week low today of $85 and closed at $88. I think this is a good short term hedge against any pullback in bank stocks.