Petra Hess of PetraPicks.com says that single-country ETFs for Russia, Brazil and Mexico are looking like a pullback opportunity on the weekly charts. Hess bought VanEck Vectors Russia (RSX) on Monday because the market there is at a breakout point, and she and is watching iShares MSCI Brazil Capped (EWZ) and iShares MSCI Mexico Capped (EWW) as swing trades because both markets have had pullbacks of 10 percent or more.
With Russia over its 50- and 200-weekly moving averages — and potentially moving to levels not seen since 2014 — Hess said she would be willing to buy the RSX up to $22.71 per share, with a stop-loss under support at $21.38. The EWW, Hess noted, is at its 200-weekly moving average and has pulled back to the 50 moving average, so it looks ready to go for a second leg up; she would buy it around $41.11 and put stops in below the 50-week moving average at $39, while Brazil is in a nice uptrend on the weekly chart with a pullback to the 20-weekly moving average at $39.15. With the Mexico ETF, Hess said it would be in the buying range with the price up to $51.74, with a stop at the 50-week moving average of $49.88.
Petra Hess runs PetraPicks.com and is a technical swing trader and long-term investor in domestic and Canadian stocks and ETFs. On Nov. 6, the day this interview was taped, she purchased 600 shares of RSX at $22.21 At the time this interview — which was taped on Nov. 6, Oct. 29 — was posted on RagingBull.com, she had no shares, options or open orders on EWZ or EWW. She is considering them for purchase, as described in this interview. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.