Brazil is a resource and an emerging market play for my portfolio. Considering I missed the recent gains in commodity stocks (steel,coal), I believe long-term EWZ should rise too provided the overall trend in commodity stocks is confirmed . Consolidation of the recent gains would be nice to see and would provide chance to add.
World Cup should provide the obvious benefits but I feel the market has't correctly priced in much premium for it yet.
EWZ is in a pattern (mostly ) and there is in the . Out of the BRICS, Brazil isn't the strongest but has a good risk-reward to trade off. Indian Stocks are already at yearly highs so hard to initiate any kind of longs there now.
I have a Tier 1 size long position bought between $46-$47. I will add more size to this position if we get a deeper pullback or if there is a good pattern on the daily to trade off. Breakout from this pattern + MA crossover confirmation would be very from hereon.
I currently don't have a hard stop on this position as I am considering it as 12 month long-term play (Stop not based on specific price but on certain events)
!Events!- Brazilian rising; 1/2 size off if SPY loses and close below 50 day MA and 1/2 off it loses 100 day MA; Commodity Stocks start a again.