Sell banks or buy SKF (Ultrashort Financial ETF) ???

Market is overbought !!! S&P 500 has rallied 40% from its March lows. Eighty-four percent of the stocks in the S&P 500 are trading above their 50-day moving averages (Financials are at 89%). Prior spikes in this reading going back to last June quickly pulled back.

The IMF states that economies of the developed world will experience a deeper protracted recession due to further deterioration in residential and commercial real estate markets, tight lending conditions and rising defaults in corporate and consumer loans.

"Signs are emerging that optimism in the financial services sector may be misplaced, or at least, premature.
It’s no secret that banks have been eschewing government aid. But, in the tradition of these giant money machines, they seem to be doing so again at the expense of their long-term security — all for the sake of quarterly earnings results.
Take for example, the approval by the Treasury Department for 10 banks to repay their TARP loans more or less ahead of schedule. Rortybomb points out that the big banks may need as much as $390 billion in the worst case scenario, according to a model using rising unemployment statistics. " Daniel M. Harrison, publisher, editor and writer of The Global Perspective