I’ve probably done a dozen posts about shorting Brazil (via EWZ) just over the past month. I went into a large very short-term position yesterday with October puts (arrow marks entry) and while I seemed to have great luck at first (red box) I was shocked when things reversed temporarily (green box).
It all worked out, though. EWZ broke its trendline many weeks ago, and it has spent months grinding out lower lows and lower highs.
I took my 50% profits on my puts, but longer-term, I think EWZ is going to be an absolute disaster.
Although the upside is that I get to trot out this photo every time.
