Brazil Break Bravado

Managing Partner at Tim Knight Organization • Nov 9, 2017 at 12:50 PM EST

Starting in early 2016, the Brazil ETF symbol EWZ roared almost 200% higher. 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.

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.

(Click on image to enlarge)

1109-ewz

What I’m watching in particular is that sharply-ascending blue trendline. Break that (which wouldn’t take much), and Brazil is no longer a nut…………it’s toast.

(Click on image to enlarge)

1109-ewzclose

Disclaimer:

This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author has no business relationship with any company whose stock is mentioned in this article nor is receiving compensation from any of the companies mentioned.

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