Friday, February 05, 2010

Brazil

Brazil has been my market to trend follow over the past couple years. Two things make it an attractive market to a trend follower. First it is volatile. Second it is subject to some major trends.

Last year I went long EWZ in March, got stopped out for a couple days in the middle of summer, jumped back in, got stopped out in December, jumped back in a couple times in January and have been out since the middle of January. I trade EWZ using an ETF in an IRA account. Unfortunately this causes some problems with trade settlements so I've decided just to trade this Long Only using what basically amounts to a moving average breakout strategy. These last couple have been great sitting on the sidelines not worrying about whether a trade is going against me. It's almost like a vacation.

On a side note, the moving average crossover system that I've been testing for emerging markets just reversed to a short position on EWZ yesterday. See chart below.

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