EWZ going ballistic

Discussion in 'ETFs' started by Petsamo, Oct 1, 2010.

  1. EWZ is running away to the up side relative to Brazil's stock market. Go long at your own risk. [​IMG]

  2. One reason not "indicated" on your chart is the US dollar going to shit again. That probably accounts for most of the performance difference.
  3. S2007S



    Currently trading at around $22.50 a share, the next correction in the european markets will send this to $30+ within a week or two.
  4. I've been watching this ticker daily and am also very intrigued by its behavior. Seems to almost have a mind of its own. I wonder, if its performance is pricing in an upcoming decline in the USD, why isn't such a development reflected commensurately in the ^BVSP?

    EWZ's October options are pegged at 72 and biased somewhat lower still. That also leads me to wonder if we'll see an exploration of the downside to some degree in the come two weeks.
  5. Dylan_24



    I am very new to this forum and ETF trading, and very interested to understand the essentials of ETF trading.

    Are ETFs being traded like stocks (for example, iShares MSCI Brazil Index Fund)?
    Are there certain trade lots?
    Where can I get prices of EWZ.UA?
    Can I short it anytime later after purchase?
    What is PnL?

    I apologise for asking such simple questions and hope for your help. Thanks a lot!
  6. Decline in the dollar? It's been collapsing these last few days, hence the performance of EWZ.

    ^BVSP is priced in Brazil currency (BRL).
    EWZ is priced in US dollar.
    A drop in US dollar, even if ^BVSP is flat, will cause EWZ to go up.
  7. Welcome Dylan. Yes, I'd say you're new to the forum, with all of 1 post to your credit! I look forward to reading more from you. PnL means profit and loss. ETFs are traded just like stocks. They are not traded in any pre-set lots. You decide how many shares to buy or sell. I don't know what EWZ.UA is, but quotes for EWZ are easily available through google finance. Yes, this ETF is easy to borrow and can be shorted without any difficulty. You don't have to buy it first to be able to short it.

    Happy forumning.