Will the naked short selling rule, prevent decent rallies in the SKF ?? I noticed to today in the last hour it didnt move when DOW tanked !
I follow and trade this all the time, surprised to see it up about $2.00. Im holding a position now. The whole naked short selling rule WILL NOT prevent decent rallies in SKF. If you are going to trade SKF dont go all in at once, its extremely volatile and can trade 10-20 in a single day. Im waiting for more of a pullback to add more, something under $110, if you have patience then wait for something under $100.
If you want something less volatile, try SKF's little sister - SEF. It's without the 2x leverage. The same company (Proshares) launched it this June. It's new so volume is spooky low. About the 2x leverage - http://www.proshares.com/funds/performance/UnderstandingProSharesLongTermPerformance.html
SKF actually made a pretty good move in the last couple of hours but you shouldn't expect it to track the DOW...since it doesn't. It seems that there is support around 117 so hopefully it won't break below that. In the long run I'm bullish for SKF but you have to have balls of steel to ride out the volatility if you have a big position.
Right now SKF is a great trade below 117 but you need to have guts due to the volatility in the financial sector. You might buy at 117 and be in a hole when it hits 112 later that day but you will probably get to unload at 145 a couple days later.
I'm looking for the $BKX to run up to 75 or maybe 80 if it's feeling strong, conversely I anticipate SKF breaking down to 110, maybe 100 for a nice entry. May take a week or two though.
can an ETF have support and resistance in the same way as an individual stock? it seems doubtful to me.
In this case if think it's less a matter of ETFs vs Stocks, but rather the difference between volatile and less volatile markets. SKF certainly does respect long-term MAs (150, 165, 200) http://stockcharts.com/h-sc/ui?s=SKF&p=D&b=3&g=0&id=p28825147897