I have no idea what the Mexican economy encompasses besides illicit drug smuggling and the manufacturing of diabetic citizens by way of Coca Cola, but whatever it is they make down there, it’s not going well. I remain cheerfully short.
As strong as the market is today, it’s interesting that a major equity fund – in this case, the emerging markets, shown below – is still in the red. My view is that it’s going to remain below the tinted area I’ve drawn and is much more vulnerable to any market weakness than the likes of SPY, DIA, or QQQ.
One of the few bright spots for me today (besides, ahem – TSLA) is my short in Mexico – shown below. This ETF has been breaking now from its symetric triangle very well, and I suspect it will only continue to weaken.
I’m really going to have to rename these occasional winners, because they are happening far too frequently. Anyway………EWZ short – - nailed the target. Your bikini zone is now clear.