As of 9:41 SKF -1.4% UYG -2.9% XLF -3.8% SKF and UYG are supposed to trade inversely on a percentage basis. Any ideas what's going on?
xlf now -4.4% and skf -2.5%.. moving in tandem down together. i know because of the ban on short selling skf could not match the inverse move as perfectly but this is a big ridiculous.
Do not trades until they get rid of these short rules. It is screwing up the pricing. I spoke with a friend this weekend who works for proshares and he said that the skf and uyg I believe are based off a swap that they can't price. All I know is that since friday am these things have been severely mispriced.
SKF was behaving normally on Friday after it was resumed. They should suspend it again since it's this far off. Completely ridiculous. Hardly any options trading on SKF either.
SKF is definitely broken. This morning I thought I was looking at the wrong symbol. Here are one minute bars of the first hour with SKF on the left and XLF on the right. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2082146>
I trade SKF nearly 5-10 times a week and today seeing it trade the way it is, is really pissing me off, I know it isnt suppose to be trading like this but is due to the damn ban on shorting, SKF is really out of whack, this ETF should be trading well above $105 right now yet its trading down with the entire index, thats great, you see how everything is F$%KED UP since they came in and tried to prop the markets up. This market is totally different from what it was just 48 hours ago. They should just halt it for the time being, not fair to the individual investor who is playing the right side of the trade but not benefiting from the downfall in the sector today.
The SKF has been out of whack for a couple of weeks now (possibly a couple of months). When the market and financials were starting to meltdown on AIG-Merrill news, the SKF only topped out around $155...as compared to its July high of $211 (when things weren't as bad as last week). Now today's action on it is just plain weird. Financials are rolling over and it's down over $3.
i use to trade skf pretty heavily until the short ban, the action and liquidity in it is not the same since the ban took action, hopefully when the ban is over it returns back to trading normally