You Cannot Beat This View

As Brazil inaugurates President Jair Bolsonaro, it is worth reiterating a point we made just before Christmas--Quite a few Brazil stocks which trade here in America have been acting remarkably well, all things considered.

In particular, compared to other BRIC countries ("BRIC" is an acronym standing for Brazil, Russia, India, China), the country ETF for Brazil (EWZ), seem below on its weekly timeframe, is by far the best of the lot. While it is certainly true that the broad market action remains particularly shaky, we still want to keep tabs on the outperforming issues, sectors, even countries for when we come across better swing trading conditions from the long side.

And Brazil would seem to fit that bill with its recent and consistent strength. As an example, in the face of a gap down to kick off 2019 for most equities, a Brazilian ADR like CBD, owner of a grocery store gain and a general business conglomerate, is gapping up back over its 50-day moving average in the context of a long, sideways base. 

Overall, broad market conditions are dicey at best. But many Brazilian stocks have taken kindly to the change in power and merit our attention this winter.