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Brazil ETF EWZ Position Update

by | Jan 20, 2022 | #ibdpartner, #investorsbusinessdaily, #MarketSmith, Swing Trades | 0 comments

Brazil-Commodities-Reflation-Trade

UPDATE: We started a position in the iShares Brazil ETF (EWZ) last week, as price action broke its clearly defined 15-week downtrend. This completes Phase IV “Markdown” as described in my book.

Phase I accumulation and Phase II markup are underway.

iShares Brazil ETF

Bullish price action has developed over the past few trading days as we add to our core position in shares of (EWZ). Higher highs and higher lows will confirm this position in (EWZ) as the 9/21d moving averages turn up and to the right over the coming weeks.

EWZ-iShares-Brazil-ETF

We are considering a potential options strategy to play a reflation trade into March or April options due to the country’s commodity exposure. 

April strikes show the higher open interest (OI).

Click to enlarge chart

MarketSmith charts also show strength in other commodities as the dollar weakens. Keep an eye on our crude oil, gold and silver plays this week. All three are trending higher, though crude is getting a bit extended. Additional confirmation will fuel the trade if the dollar continues its fade and stays below the 9/21/50d moving averages.

 

Join us today in the trading room for our LIVE broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading, 

Vinny

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