We are back to an “Othello” market. Down one day. Up the next. Down the next day. Up once again. I have just described this entire week to you.
Although stocks are very strong at the moment, I would suggest to you that Brazil’s longer-term trend is still downward, and that the ETF shown below is quite vulnerable to resuming its tumble the moment the “buy” algos are off.
Well, it’s nice to see at least ONE equity market getting blown all to hell. That’s Brazil. In a way, this collapse was neatly predicted by the ultrashort BZQ, which had a beautiful base. It has been a monster ever since.
Starting in early 2016, the Brazil ETF symbol EWZ roared almost 200% higher based on……..what…….a big surge in personal shaving services? I’m not sure. But their stock market went insane, shoving away anyone foolish enough to be in their path.
My view is that this surge is at the cusp of failure. Here is the broad SlopeCharts (why aren’t ALL of you people using this product? It’s FREE, and it’s FANTASTIC!)
Interesting morning so far – – gold is getting its shiny bottom kicked, and equities are (as usual) drifting higher. I came into the day short Brazil by way of EWZ, and unlike US markets, Brazil is actually slipping right now. Of particular interest to me, besides the enormous multi-year drift down, is this highlighted pattern……..