Update-EOM Trading Tuesday 8.23.16 BRZU

The Bulls were in control until mid-day when selling hit. All three indexes closed in the green-data from Stockcharts.com.  The NASDAQ hit a new NOMINAL high.  The REAL value takes inflation into account.

Today is day thirty of this sideways action pattern-consisting of a forty-three point, 2% spread on the $SPX (2150 – 2193).

Today is “Trading Tuesday” and I revisit the previous post on trading candidate BRZU.  Here is a link to the current chart.

My 3.16.16 Market Recap.

The rest of this week, we revisit some of our “Trading Tuesday” candidates.  In January, I featured BRZU-their profile BRZU from Yahoo Finance.

Key Points on BRZU…

1.  See vertical red line for the previous feature date

2.  A Buy Signal hit a couple of days after BRZU was featured

3.  It ran 196%  Yes-this is correct

4.  Is trading in correlation with the main Brazilian Index $BVSP

Tight Stops are a must when trading leveraged securities.

When trading leveraged securities, I use a 5-10-15 SMA…a new template in the “Playbook 2016.”

Back to real-time.

As of Sunday, the Olympics in Rio are over.  Could the recent run be in relation to the mega dollars/pesos spent for the Olympics?

After the March post and reverse split, the price ran, reversed then ran 140%.

Key Points on BRZU…

1.  No Dividends

2.  Is tracking with a .85 correlation to $BVSP

3.  Using the Leveraged Trading Chart Style, the price crossed DOWN through the 5-10 and 15 SMA

4.  CMF is negative, while the MACD Histogram, RSI and Slow Stochastic are dropping

Here is a link to the seasonality chart-a must before trading.

BRZU hit a Simple Simon Sell Signal today. Tight stops are a must if trading. 


David O. England

Plan your work, work you plan, share your harvest! Philippians 2:3-4

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and is not intended as financial advice.

If you have a question or comment, contact David England at eyeonthemarket@outlook.com.

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