Bigworld, There's bound to be a pullback at some point in the financials. The XLF Fincl ETF is up around 15% since the election, G Sachs is up over 25% and JPM 20%. So a nimble short at some point could be profitable.
But by the 'conservative' rules of trading (boring but time tested), since there was a strong breakout and the stocks are in long term uptrends, you either stay long or buy the dips. Shorting within a long term uptrend goes against the trend, thus going against the rules of conservative trading. But speculative trading goes by different rules, ie 'whatever works' :o)
If Rickards is right and the European banking crisis starts to really take hold, that could be the conservative time to jump in on the short side.
I find it hard to believe that they'd let the banking system collapse over a measly $20-30 bil Euros, considering the Fed ponied up some $27 Trillion the last time around. But who knows, maybe the idea is to create a brief scary crisis to establish the precedent of the 'bail in' in Europe and the US, for when the really big crisis hits in the future. If that's what they're up then it's an extremely risky strategy. I'll stick with cash and gold/silver.
