They Threw the Baby Out with the Ipanema Beach Bathwater

Part of the fallout from the selloff in emerging markets this summer was seeing growth names like PagSeguro take it on the chin. PAGS is an online or mobile payment-based e-commerce service for commercial operations, based in São Paulo, Brazil. 

As we know, the payments segment, and especially mobile payments, continues to be a hot theme not just here at home but also abroad. And when you factor in the potential growth for emerging markets, the future prospects should make bulls downright giddy for some firms like PAGS. 

First things first, though, and PAGS must prove is can emerge from its EEM-related correction.

On the PAGS weekly chart, below, holding above $29 here should make for a promising first step in that process. 

The FOMC reaction next week could easily be a risk factor and wildcard for emerging markets, which of course includes PAGS. But it is worth noting that plenty of bad news has been anticipated headed into this FOMC with the weakness for much of this year in emerging markets, especially since June.