Looks to me like it's headed towards another bottom. No reason why it should go up anyways, their whole country was downgraded last week. If Feds don't cut rates, this will tank on the currency exchange alone.
This has been one of the most oversold episodes of the stock in it´s history. I think it might bounce back maybe to the 38.2% of the fibonacci scale. around 13 pesos.
Mexico is relatively cheap compared to other emerging market stock exchanges. In addition, I agree with several analysts that Mexico could be the winner of the trade war between USA and China. My investment strategy indicated a buy signal for EWW on May 21, with a target price of ~48 USD/share (expected profit of ~7.5%).
Date released on the 1st show South Africa to be contracting at a faster pace (worsening), express caution!
No trade just looks like a good long set up. Good recovery. Looking like its finding support.
When in doubt, short garbage. Candlesticks tend to work well on EWW, and the Mexican market goes down when the US market goes down. 2 day trade with weekly puts, though the safer play might be next week's puts.
I think the Peso will regain strength over time from this juncture. The weekly Time@Mode trend signal we had here expires next week but price already seems to be trending down in the daily timeframe, and broke a previous weekly low, so I think we're safe to assume the decline started already. The G20 talks and oil related news might be behind the strength in...
This might be set for a rebound but trend has been down for a little more than a year, so I would not expect much. If this gets back above the blue doted trend line, it would be back into the longer term up trend. Then it would be back in the middle term triangle and again wait for a break out either way. This only if above blue dotted line.
I forgot to mention Mexico ETF EWW +17.75% & also short MXNUSD +10%
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Hi guys, thank you for the support! I will have this analysis out each weekend as well as daily updates throughout the week, if you guys like what I'm doing hit the "follow" button and you will get a notification each time I post a video or chart! Have a great day everyone!
This week: three candidates for directionals and one nondirectional premium selling play ... . CPB: Although timing could have been better to catch the absolute bottom in this, implied volatility rank and background implied volatility remain quite high in this underlying (61/35). Given price weakness coupled with high implied volatility rank, I would think that...
Hi guys, thank you for the support! I will have this analysis out each weekend as well as daily updates throughout the week, if you guys like what I'm doing hit the "follow" button and you will get a notification each time I post a video or chart! Have a great day everyone!
Yesterday We got a close above the 200 Moving average and EWW is right inside the Volume area, and right at the Point of control. So I expect two-way action between buyers and sellers, giving me a chance to make a neutral trade. With EWW IV Rank at 57, I sold the 54/50 Strangle (30 Delta) that expires in February, to take advantage of the high...
EARNINGS The earnings on tap aren't looking very enticing to me, as I generally look at getting in on these where the implied volatility rank is >70% and the background implied volatility is >50%. However, they might be worth watching running into earnings to see if implied ramps up. KMI (implied volatility rank 79/implied volatility 30) announces earnings on...
EWZ and the Emerging Markets ETF EEM have a strong correlation (Since EEM have 7.7% of brazil stocks). The correlation for the last year have been .92, and the last 30 days have drop to .40. Today we got a strong move on EWZ of -3.18% at the time of the trade and -.64% on EEM. By trading one to the upside and the other to the downside I will look to reduce...
USDMXN apparently has bottomed after a sizeable pullback, good to try the long side here. Start small first, risk 0.5%. Additionally, $EWW looks a bit toppy here. Good luck! Ivan Labrie.