{"id":25181,"date":"2014-10-28T23:55:26","date_gmt":"2014-10-29T06:55:26","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=25181"},"modified":"2014-10-28T23:55:26","modified_gmt":"2014-10-29T06:55:26","slug":"start-buying-ewz","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2014\/10\/28\/start-buying-ewz\/","title":{"rendered":"Finally Stepping In to Start Buying iShares MSCI Brazil Capped ETF"},"content":{"rendered":"

(This is an excerpt from an article I originally published on Seeking Alpha on October 27, 2014. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

The iShares MSCI Brazil Capped ETF (EWZ) has fallen rapidly from a 16-month high to a retest of 2014 lows in just seven weeks. The 27% loss over this timespan represents a remarkable collapse in sentiment, but the move is quite consistent with EWZ’s downward trek since its post-recession peak in 2010\/2011.<\/p>\n


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\"EWZ<\/a>
EWZ has been stuck in a downward channel for the majority of this post-recession period<\/figcaption><\/figure>
\n<\/center><\/p>\n

Political drama from Brazil’s presidential election and subsequent run-off have generated extremes in volatility on the way to the plunge toward 2014’s low.<\/p>\n


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\"Election-related<\/a>
Election-related drama have created very volatile conditions for EWZ<\/figcaption><\/figure>
\nSource for charts: FreeStockCharts.com<\/a><\/strong>
\n<\/center><\/p>\n

When I visited EWZ almost a month ago<\/a>, EWZ had almost triggered my rule to start buying EWZ on a 20% drop from the most recent high. I argued for putting that rule on hold given the risk of steeper losses. Another 10% drop later with an open near the 2014 low, I decided it was finally time to start buying. <\/p>\n

<\/p>\n
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$EWZ<\/a> challenging 2014 low which would now be around 5 1\/2 year low. Time to be a buyer again as risks getting priced in.<\/p>\n

— Dr. Duru (@DrDuru) October 27, 2014<\/a><\/p><\/blockquote>\n