Financial exchange traded funds (ETFs) have been heading north this week. It’s got many wondering if the Bear Stearns (BSC) mess was the end of the crisis…or, more ominously, just the beginning.

The up tick in these funds naturally has lead to a downturn in ETFs that short the sector. The ProShares UltraShort Financials (SKF) is down 12.1% in the last week. Compare that with the Financial Select Sector SPDR (XLF), up 5.9% in the last week, or the iShares S&P Global Financials (IXG), which is up 6.3%.

Matthew Ganucheau for Seeking Alpha wonders if those buying into financials right now know something he doesn’t, or if they’re just overly optimistic and ignoring the fundamentals.

In these volatile markets, it’s a wise idea not to throw out your strategy and chase performance. While these funds did have a good week, they still remain below their 200-day moving averages. Waiting until they cross that threshold and exhibit consistent performance is your wisest move, especially while the market still tries to make up its mind about whether this crisis has ended.

Although you can rattle off terms such as "credit default swap" and "subprime lending," do you actually know what you’re saying? If you’re not entirely sure and want this whole mess broken down into layman’s terms, check out this episode of Fresh Air on NPR. Law professor Michael Greenberger breaks it down in excellent fashion.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.