Europe Debt Concerns Please click here for an enlarged chart of Ishares Msci Brazil ETF (NYSE:EWZ). Note the following: The chart shows EWZ leaped above zone 1 on election results.
An overbought ETF is susceptible to a pullback. S.
S. inflation, and corporate profit margins.
Bolsonaro, the candidate of the right wing Liberal Party, received approximately 47% of the vote against President Lula’s 45%, setting up an October 25 runoff with the presidency still undecided. Flávio Bolsonaro’s father Jair Bolsonaro was previously president of Brazil and very close to President Trump.
Jair Bolsonaro is now in jail. S.
strategic interests and a negative for China. S.
S. dollar.
Brazil ETF EWZ is in our portfolio. We have continuously followed Brazil for 19 years.
In our analysis, if Brazil gets its policies right, Brazilian stocks and Brazil ETF EWZ can go much higher. Persistent budget deficits have contributed to high borrowing costs, while political interference in companies such as Petroleo Brasileiro ADR Reptg 2 Ord Shs (NYSE:PBR) has damaged investor confidence under governments of both the left and the right.
Credible spending discipline and predictable business policies could create room for lower interest rates and stronger corporate earnings. Further in our analysis, EWZ can benefit from rising earnings and higher valuations, with a stronger Brazilian real potentially adding to returns in dollars, provided Brazil follows through with lasting reforms.
You may recall that we were one of the first, if not the first, in 2020 to warn that the stock market would fall because of COVID. S.
So far in the early trade, both the oil and stock markets are ignoring Iran developments. FOMC minutes will be released on Wednesday.
In our analysis, the probability is high that earnings will be strong. Having said that, there is significant downside to the stock market if earnings do not measure up.
In the early trade, money flows are positive in NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT). com, Inc.
(NASDAQ:AMZN). In the early trade, money flows are negative in Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), and Tesla Inc (NASDAQ:TSLA).
In the early trade, money flows are negative in SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 (NASDAQ:QQQ). The most popular ETF for oil is United States Oil ETF (NYSE:USO).
Bitcoin Bitcoin (CRYPTO: BTC) is range bound. What To Do Now Consider continuing to hold good, very long term, existing positions and add tactical positions based on signals.
The Arora Report is known for its accurate calls. Most recently, we correctly called the rally from recent stock market lows and the 2026 semiconductor decline before a 25% drop in the Semiconductor ETF (SMH).
In gold, we bought at an average price near $1,105, close to cycle lows, and took partial profits near $5,400, close to cycle highs. Benzinga Disclaimer: This article is from an unpaid external contributor.
It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
