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Sunday, November 16, 2014

Come on Brazil, let's fight against corruption!

As you can see on the first chart, IBOV continues inside the low tendency channel that started in September. The probability shows it will continue going down unless something really strong happens and "break" the channel. The problem in Brazil right now is the big corruption in the largest company in Brazil (Petrobras - PETR4) which may involve politicians. Of course this is not the kind of news that attract international investors... So, many of them are selling their positions and they will probably wait for a definition. If the government acts fast and get the money back (some news says around US$ 90M), re-invest, and arrest evereybody, this could show a new credibility in Brazil that international investors will like.

As an optimistic about Brazil, I hope the police and governmwnt solve this as fast as possible, so, Brazil can focus in other important issues.

Regarding investments, I continue with the same suggestion from last week (KROT3) because it has a low correlation with IBOV or PETR4 and KROT3 has a good probability of going up if the trade starts.

The other stock that calls my attention is VLID3.

VLID3: Start Gain (buy ONLY IF achieves) 39.52 ; Stop Gain (sell 100% if achieves) +2% ; Stop Loss 37.58

Have a great week!

Leo.

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