Brazil - ready to see market prices not seen since 08' Forgot to post. I am shorting the Bovespa index. I expect to see 30,000 soon.
Bovespa
BVSP all the way downTogether with my last chart about the BVSP, this is more of a Swing-Trade leveraged position against this active (BOV11 in IBovespa and BVSP in NYSE), considering the following fundamental key points:
* The main stocks are being hammered, some of them: Petrobras, Vale, Sabesp.
* Brasil fiscal efforts to keep a good spending balance showed some ugly side effects on the economy.
* The Brasil's economy plans to grow by 0.3% this year, which basically means a recession.
Basically, in the near term there's no way you can be bullish in this scenario until all the changes on the fiscal politics stabilize the economy and produce long-term growth. It may not even begin this year.
The last push below the surfaceI think it'd be a pity to start this year without testing the famous major annual support by BVSP. Although there are some fundamentals involved, always consider this before entering a long-term trend, the government as been changed but we "wont" (we may) see any new relevant changes until march, or april. So until february, it should call for it's bottom at the major. Everyone will be shorting it as well, so be aware.
