I hate to do this but I feel a bit good about the fact that the Ultrashort Financials ProShares (SKF: 138.00 -7.76 -5.32%) has dropped by 35% since Tuesday. This ETF is designed to give twice the gain as the loss of the Financial Select Sector SPDR (XLF: 20.67 +0.41 +2.02%). Also, double the losses if XLF rises.

Over the past couple of months I have believed the share prices of many good financial institutions have been driven down to stupid levels. At the same time my reading of comments at online articles about financial stocks showed a tremendous level of belief that the U.S. financial system and companies were in a death spiral. I hope some of those naysayers were among those who bought 35 million shares of SKF on Tuesday and now have lost a third of their investment.

I understand the beliefs of both bulls and bears, and readers here know I am pretty much of a perma-bull on the stocks I like. I have no sympathy for those who take a double exposure bet against a big part of the U.S. economy hoping the sector collapses. So here is hoping for continued gains for my financial sector picks: (CTBK: 10.10 -0.32 -3.07%) and (AYR: 9.74 -0.19 -1.91%) and I hope XLF doubles from here and SKF goes to $0. Can that happen? I don’t have a clue.

Note: I have long positions in CTBK and AYR.

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