timwest
Long

Brazilian Real Fund ready to follow XLE higher

BATS:BZF   WISDOMTREE BRAZILIAN REAL STRATEGY FUND
336 11 2
This is quite an overlay of the Brazilian Real Fund (BZF) versus XLE             (energy etf ). Since most of the Brazilian market is PBR             and VALE or plainly oil             stocks , it appears that the currency is similar too.

It looks like there is relatively easy-money buying the BZF and selling short the XLE             , $ for $ for a 1-2 month 10% profit.
BZF $18.99 last (for $10,000 trade, buy 526 shares)
XLE             $77.28 last (for -$10,000 trade, sell short 129 shares)

Risk, 5% initially, then reduce it to 3% within a week.

Cheers.

Technical Tim, Friday 10:25AM EST, Sep 14, 2012
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Algokid PRO
4 years ago
Nice find Tim !
Reply
timwest PRO Algokid
4 years ago
Thanks. Stumbled into it after I was looking at PBR and thought about other ways to trade Brazil and energy in general.
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timwest PRO
4 years ago
http://stockcharts.com/h-sc/ui?s=BZF:XLE&p=D&b=5&g=0&id=p01189878306
XLE has been doing all the work on this pair ---- so far, so good.
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timwest PRO timwest
4 years ago
NOTE: I had to delete the previous link because it didn't work properly. It said basically the same thing as this, except it said the pair is up 4% at best. There was almost no loss prior to experiencing profits as XLE turned and has been in a steady downtrend since posting the original idea.
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timwest PRO
4 years ago
I think XLE is oversold enough to warrant taking this trade off. Cover XLE short. Exit BZF long. XLE was at 77.28 to start and is now down at 72.33 for a nearly 5% gain. BZF is down to 18.73 from 18.99, which is down 1.5%, so the overall trade is up only 3.5%, excluding any commissions costs.
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