Looks like large and mid-sized companies in Brazil will have a nice little run up in the coming weeks. Chart is bullish on daily and weekly cycle. Taking a long here.
It's Friday, and the last trading day of September ... . Here's what's at the top of my IV screener in the exchange-traded fund space: TQQQ, IVR/IV 23.3/64.2% GDXJ, 22.7/36.4% (2.52% yield) FXI, 12.5/33.4% (2.26% yield) EWZ, 11.1/31.9% (10.9% yield) GDX, 26.0/31.5% (2.23% yield) You'll notice that everything is still pretty much in the lower one-quarter of the...
A break below this key area would have catastrophic results for the Brazilian markets. I would even venture to say for the entire Brazilian economy & political stability. The effects of it will be felt throughout South America. I urge caution!
What does these 2 instruments have in common? Same capital flows? Or just a coincidence?
*EWZ trades in a range with support level at $25,5 *open -P $25 (Jan 20th) at bearish candle *neutral *Credit (0,77$)
... for a .95/contract credit. Comments: High IVR/IV at 79/58. .95 credit on buying power effect of 2.52. 37.7% ROC at max, 218.4% annualized; 18.8% at 50% max, 109.2% annualized. Will generally look to take profit at 50% max.
... for a .75 credit. Comments: Weakness plus high IVR/IV at 64/50. .75 credit on buying power effect of 2.53. 29.6% ROC at max; 14.8% at 50% max.
... for a 1.25 credit. Comments: Closing out at 21 days for a small loss (.07/$7). With this volatility expansion here, I want to redeploy into the biggest bang for my buck, which may or may not be in EWZ.
After the accumulation zone, EWZ can pump up. Important Fibonacci Levels: -20,0 -26,9 -31,0 -34,2 -37,7 -42,2 -48,4
... for a 1.18 credit. Comments: High IVR/IV at 62/47. Selling the ~20 delta strikes or so both sides. 1.18 credit on buying power effect of 3.18. 37.1% ROC at max; 18.6% at 50% max. Delta/theta -5.06/3.13.
... for a .23/contract debit. Comments: Filled for .47/contract (See Post Below), hit 50% max today. .24 ($24) profit/contract.
I’d like an ETF for E7 Countries, holding their ETFs (Brazil EWZ; China MCHI; India INDA; Indonesia EIDO; Mexico EWW; Russia ERUS; Turquia TUR). Theses countries has been more GDP upside than the G7 Countries. An this must go on. *** The Russia ETD was excluded for the “index” because it isn’t been working on. I’ll include the ETF ERUS after the war.
... for a .47/contract credit. Comments: Selling some 15 delta premium in the Brazil exchange-traded fund (IVR/IV 83/54) on weakness. .47 on buying power effect of 2.31 (on margin). 20.3% ROC at max; 10.2% ROC at 50% max.
With the current fear of recession & rising inflation in the US, a lot of funds will be flowing outside into emerging markets, China & also Brazil which is rich in commodities especially now that the dollar seems to be peaking out as foreign markets slowly becomes more attractive to invest in. EWZ may retrace down first to fill the gap at 33.65 green line. A...
One of my followers asked me for a long term play, here's one. EWZ (Brazil) is still at the same level as 2008. It's in a pennant and looks like it will break upward. Why? What does 2022 and 2007 have in common? High oil and commodity prices. Materials and Energy is 40% of EWZ plus the currency is rallying because of oil. I suppose you can play DBC...
Looks to me like oil is breaking out. That's terrible news for the economy and inflation. High oil prices can and will cause a recession, regardless of what Powell does with rates. Bought EWZ calls today, Brazil trades with oil. Probably could've just bought USO calls, but I like the liquidity in EWZ options.
... for .18/contract debit. Comments: A little bounce, a little volatility contraction ... . In for a .71/contract credit (See Post Below); out for .18 here with 28 days to go. .53 ($53) profit/contract.
... for a .71/contract credit. Comments: Taking a directional shot on weakness here and in high IVR/IV (92/46). .71/contract credit on buying power effect of 2.71; 26.2% ROC as a function of buying power effect at max; 13.1% at 50% max.