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Sunday, July 26, 2015

IBOV missed important support. What to do now?

After 8 weeks IBOV missed the support at 52k points, falling down -5.9% to 49.2k points. This is a bad signal because Ibov is in a downward trend after this week.

In my personal opinion, this is happening because there is an expectation that Brazilian Central Bank will continue increasing Interest rate to control inflation. This attracts more investments to fixed income instead of stocks.

This week, I'm not planning to invest in new stocks. Let's focus on the profit that we have in the stocks in our portfolio. If they achieve our "Stop Loss" price we will sell the stock and have profit very similar to first column. If it goes up, it is even better.

                       %              IBOV (at same period)
PSSA3       +30.7            -0.1                 Increase Stop Loss to 36.18
BRFS3       +5.6              -5.0                 Increase Stop Loss to 66.44
BRFS3       +6.0              -5.9                 Just like previous
GETI3        +14.7            -13.9               Perfect movement. Let's leave the way it is.
TAEE11     -0.1               -8.8                 Increase Stop Loss to 19.94
BRFS3       +4.4              -8.0                 Just like previous BRFS3
EQTL3       +3.5             -8.5                  Increase Stop Loss to 34.68
LREN3       -2.4              -8.3                 Increase Stop Loss to 105.79
PSSA3       +2.1              -9.0                 Just like previous PSSA3
VLID3       +2.3              -8.8                 Don't change anything this week.
CTIP3        +4.2              -8.6                 Don't change anything this week
EQTL3      -3.2               -6.4                 Just like previous EQTL3

Next week I hope to find stocks that have more than 75% of change of achieving profit.

Have a great week.

Leo.

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