The chart below shows that the iShares S&P Latin America 40 Index ETF (ILF) met our $41.50 initial upside target this morning, first mentioned in our July 15th report entitled Latin America: The Clouds May Be Clearing to capture a 4% advance in a little less than 6 weeks.

The benchmark S&P 500 has risen by just 1% during the same period.

ILF daily since April 2014

From that report:

“The iShares S&P Latin America 40 Index ETF (ILF) broke out higher yesterday from 2 months of sideways price congestion, which suggests that its larger 2014 advance has resumed and targets at least an additional 4% rise to %41.60 that will remain valid above 39.05.  This sets up an initial 2:1 risk/reward ratio in the ETF that has the potential to greatly improve over time…

Finally, because ILF has been statistically uncorrelated to the S&P 500 SPDR ETF (SPY) over the past 13 years, and has already outperformed SPY by 15% since March, we view this Latin American ETF as being worthy of consideration as a means to both diversify portfolio risk and to potentially enhance performance.“