Ex15:26

Shorting China and Financials: Money Left on the Table - A Cautionary Tale

While HedgeTruth is correct, intraday, these things do trade directionally in the same direction as the market basket of financials. However, his statements would have us believe that there is some linkage during the middle of the day between the workings of 293 different firms and this ETF in some technical way. If that were the case, ETFs like SLV would trade exactly in lock step percentage moves with the underlying commodity they are trying to represent. Clearly that is not the case and the difference is a result of several things.... and one of them is the supply and demand of folks that want to by these things.

I think it is a good exercise to examine the chart on SKF to see where you think support might be, but I wouldn't use it the same way I would for a stand alone equity, because everything is really story driven and you are basically take a stab at where you think financials will go and then holding on.

Use stops!
Blessings.