Back on the 8th of August, I did a post called Full Brazilian in which I declared, in part:
Simply stated, Brazil was shaping up and the small caps were driving me out of my mind. I finally got sick of the fight and dumped them on Friday. I kept EWZ, however, and intend to double the position on Monday.
I did indeed do that, committing a full 100% of my options portfolio to a single put position (October 16 $34 puts), which are up over 30% so far. My simple question to you folks is: why? Not that I’m anything but delighted, but how come Brazil is managing to sink while oil is up huge and the U.S. indexes are at lifetime highs? I based my decision on a chart, but I’m still curious…………..why? What is it about Brazil?
