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).

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It all worked out, though. EWZ broke its trendline many weeks ago, and it has spent months grinding out lower lows and lower highs.

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I took my 50% profits on my puts, but longer term, I think EWZ is going to be an absolute disaster.

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Although the upside is that I get to trot out this photo every time.