General Stock Ideas

[bigworld]

Time To Start Thinking About Shorting The Financials?

If the post election rally is losing its momentum it might be a good time to start adding short positions against the Financial stocks. Financials have led the post election rally, and 50% of the upward move in the XLF came from two stocks, Goldman and JPMorgan. There are several attractive ETFs to short the financials, depending on your risk tolerance.
SEF = A non-leveraged shorting ETF
SKF = 2 x leveraged short
FAZ = 3 x leveraged short
FINZ = 3 x leveraged short
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If you look at the FINZ chart for the 2016 Calendar year you wee that is briefly topped $30 a shares early in the year. It closed Friday at $9.03 I believe. If the Italian referendum goes against the government it puts another nail in the eventual coffin of the EU. Italy's banks are on the brink of failure. We could wake up Monday morning seeing a lot of red numbers out of the Asian and European markets, a that contagion will carry through here. This rally that we have seen since the election is a lot of hot air and all it did was make valuations more dangerous and the markets more vulnerable to a significant downturn. I am leaning toward starting a position with FINZ soon.. I have held fast to my precious metal strategy despite the downturn. But if the Deep State wants inflation we will get inflation. And my PM ETFs will soar. But I like the idea of shorting the Financials here. They seem prone to a reversal. The recent rally had very thin participation.