Latin American exchange traded funds (ETFs) have suffered from the recent global market correction. As of mid-day trading iShares MSCI Mexico Index (EWW) was 8.03% off its most recent high, iShares MSCI Brazil Index (EWZ) was off 10.62% and iShares S&P Latin America 40 Index (ILF) was off 8.23%.
If you’re new to this fund, you should either have already hit your personal stop-loss point or should have one in mind. Since it is already more that 8% off its most recent high and now below its 50-day moving average, you might consider selling it now. The fund is so far above the 200-day average that waiting for the fund to break the 200-day might prove to be painful.
If you like the Latin American region and want to re-establish a position, the 50-day would also make a good entry point if it were to rebound back above the trend line.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.