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Earlier today, I doubled my short position on Brazil fund EWZ (by way of long puts) since XLE has been such a train wreck (Thank YOU, TNRevolution). My timing was good, because shortly thereafter, for reasons I neither know nor care about, it broke intraday support.
What I’ve always liked about EWZ is that – – hang on to your hats – – it actually has the ability to go DOWN. I know this word may be strange and foreign to some of you, but yes, down. D-O-W-N. Which in a fraudulent joke of a “market” like this, is an exceptional achivement.
The steady flow of lower lows and lower highs is just what I want to see, and the very definition of a downtrend. The next goal is to break that lower horizontal. May God smile upon Brazil. In a bearish way.