Looks like EWZ has made two attempts to rise above its MA's and failed twice in the last two months(see link). Like the earlier poster has his finger on one large concern, Global Recession. I wasn't so lucky as he I sold at 70.96 the shares I had yesterday and almost broke even buying at 71.00. Like he I'm concerned recession, about China, EU and even here. Most of my money is in shorting financials.
also would add it looks like more trade with new partners is in the works, from China to England ... also lots of new companies setting up in Brazil from Heinz to universities. ewz just under the radar these days. like it long term not to say it can not get weaker in the short run. Thinking we will see more or larger trading with European nations as well. Of course USA is going to continue its trade relationship, especially for oil. jmho
I do think this is a buy opportunity. yeah short term if a recession returns everything goes down, commodiites included, but still long term the prospects of commodity rich nations look excellent. I just heard today how some are saying Canada has such a strong economy and dollar, and i think the same will hold true for Brazil, perhaps with more upside than Canada from todays numbers. I also think Brazil has a lot of room to grow its own local economy. One continues to hear of large or mega projects from power to rail to oil drilling. Their agriculture position looks good as well. They have abundant hydro electric power, fresh water, agriculture and energy and an emerging/improving middle class. Like it here and think the next dividend could be a good one as well. glta.