The tanking of Oil prices in July, not counting yesterday’s rally, have certainly not helped Brazil being a producer of the commodity, and one can see the heavy correlation between Oil prices and Brazilian equities not just in the past month but in the year to date, as well as trailing one year periods and it has simply been a bloodbath.
Contrarians here looking to embrace a potential reversal on the long side may look to the under-covered BRZU (Direxion Daily Brazil Bull 3X, Expense Ratio 0.95%) which has only $38 million in assets under management but from time to time (like the past week or so) sees huge vaults in its daily trading volume relative to the norms.
iShares MSCI Brazil Capped ETF
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