1 week to Brazilian elections and the effects on Stock Markets

As I mentioned on my last post I was expecting a lateral movement in Brazilian stocks due to the first round of elections for president in Brazil and that happened. Investors continue waiting to see what is going to happen, because the level of confidence in Brazilian economy will vary depending of the actions and plans of the next president. As you can see on the graph, IBOV had a very small reduction and stopped at 56,000 points for 4 days and went up on Friday.

Next week I posted about LAME4, but the trad didn't start because the price didn't achieve our Start Gain price.

FIBR3 and ITUB4 continue performing very well, achieving +16.2% and 12.7% of profit since the day we bought and we continue holding them.

SMTO3 and ABRE11 gave some bad signals last week and I prefer to increase the Stop Loss for both. SMTO3 increase to 40.63 and ABRE11 increase to 37.78. We would still have profit with both and let's see if they increase their prices next week.

After doing lots of analyses, for this week, I believe this is the best opportunity.

GETI3 - Start Gain (buy ONLY IF achieves) 15.92 ; Stop Gain (sell 70% of what you buy) +2% ; Stop Loss 15.08

Have a great week.

Leo.

I'm here to help you to invest in Brazil

As I expected IBOV was lateral last week. Elections for president in Brazil will be in 2 weeks and I believe big investors are waiting for this defitinion and invest more. But, in Brazil, there are 2 rounds. Therefore, the 2 best candidates will go to the second round in November.

Because we there is always the probability that the market may go dow, we increased many of our Stops and we sold some stocks last week.

Here is the summary:

KROT3: Sold with +28% of profit
IGTA3: Sold with +12% of profit
BRML3: Sold with +3.5% of profit
PCAR4: Sold with +3% of profit

We still continue with (check previous posts to read the forecast about these stocks):
ITUB4: +13%
ABRE11: +11%
FIBR3: +16% (even with IBOV going down, it increased 3 weeks in a row)
ODPV3: +2.4%
SMTO3: +8%

Can we buy again some of the stocks that we sold? YES. I will just wait next week to check if the prices are good to buy again. As usual, we will always use "Start Gain" order, to make sure the movement has more probability of going up.

This week there is one stock that may be a good investment if the trade starts.
LAME4: Start Gain (buy ONLY IF achieves) 15.11 ; Stop Gain (sell 70% of what you buy) +2% ; Stop Loss 14.17

Have a great week!

Leo.

Next week defines if we return to Up, Lateral or Down

IBOV seems to have achieved its target for price reduction (lower red line), but this time it was much faster than the other times. In my opinion, this is not good because it shows a little bit of fear about the future. Investors prefered to sell the stocks instead of keeping it. At the end of this week, IBOV continues in high tendency, but, I believe it will stay lateral the next weeks.

Due to that uncertainty, I prefer to increase the Stop of most of our stocks, so, if the price achieves our Stop, we sell the stock and wait for a more conservative scenario (remember, I don't want to lose my money and I don't want to see you losing yours). Because we are not sure if IBOV can go really down, I prefer to be conservative.

KROT3 - happened a slit 4:1 - Increase Stop Loss to 14.69 (if we sell, we will have 30% of profit since the day we bought). If we keep it, it means it went up, so, it increases our profit.

IGTA3 - Increase Stop Loss to 24.89 (if we sell, we will have 12% of profit since the day we bought). If we keep it, it means it went up, so, it increases our profit.

ITUB4 - Increase Stop Loss to 36.68 (if we sell, we will have 10% of profit since the day we bought). If we keep it, it means it went up, so, it increases our profit.

BRML3 - Increase Stop Loss to 20.17 (if we sell, we will have 4% of profit since the day we bought). If we keep it, it means it went up, so, it increases our profit.

ABRE11 - Increase Stop Loss to 37.44 (if we sell, we will have 4.5% of profit since the day we bought). If we keep it, it means it went up, so, it increases our profit.

PCAR4 - Increase Stop Loss to 109.22 (if we sell, we will have 3.5% of profit since the day we bought). If we keep it, it means it went up, so, it increases our profit.

FIBR3 is going completely against IBOV and increased +13% in 2 weeks!

Let's wait one more week to buy stocks.

Have a great week.

Leo.

Ibovespa - Just waiting for the right moment to buy again

Ibovespa had a normal reduction this week after practically 3 weeks going up. This is normal and it may continue next week (as it happened in the previous months).

The stocks that you and I have continue in high tendency (as Ibovespa) and we are not thinking about selling them.

For this week, I continue with the same idea of last week: I couldn't find stocks with more than 70% of chance of achieving profit that have a small Stop Loss. I don't like to invest in stocks that have a huge Stop Loss, because there is always a probability of achieving loss and I (and I'm sure you) don't like losing a lot of money in just 1 trade.

Let's wait for next week, because I think prices may reduce a little bit more and we will have better opportunities (smaller Stop Losses).

Have a great week!

Leo.