Just about the only major equity ETF that I’ve been comfortable shorting has been Brazil (symbol EWZ). All eyes are on Brazil now, obviously (sort of like all eyes were on China in the summer of 2008 for the Olympics), and who knows how much of the run-up with Brazil was related to World Cup fever, but the chart is showing far more weakness than what you’d expect, given the insane strength of world markets. We’ve been in about a ten dollar range for the past fourteen months on this instrument, and we’re still very much on the high end of that range.
On a more domestic note, it sure would be interesting if our constantly-descending friend the VIX broke this down-sloping channel. A rise about 12 would do it.
