Over the past year, Brazil’s economy has left the rest of the world in its wake. With the most recent banking troubles in the US, many of the Brazilian stocks have been put on sale. For those who are bullish on Brazil, lets take a look at some ways to play the recent sell off.
The first play is with EWZ. This is the way to play the entire Brazilian market. It is similar to the SPY in the US markets. Below is a chart showing the pullback on the fibbonacci’s into the sweet spot. Not only is the EWZ surging out of the sweet spot, but the ROC indicator is showing signs of bottoming.
If you are looking for a way to play an individual stock, below are some of my favorites. If you are looking for other Brazilian stocks that are traded on the US markets, check out http://www.adr.com/adr?page=region&formtype=6&country=BR
Whenever trying to pick up a stock that has been beaten up, remember to put a stop just below a support level. By doing so, you will limit potential losses while being able to enjoy the profits of your correct decisions.
Happy Trading!
Jeff
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