SMLL UPDATE
My short on Brazil’s small cap index (SMLL) is seeing a natural pullback within the broader downtrend and remains profitable in the portfolio.
The thesis is being tested as the Brazilian yield curve has loosened in recent days on news of weakening support for Lula’s reelection campaign, a clear reminder that the scenario remains heavily driven by election polls.
I'm staying in the trade as long as price holds below the downtrend resistance zone and the daily 50 EMA. I wouldn’t be surprised to see renewed selling pressure once we approach that region, potentially driving the index toward the final target marked on the chart.
$SMAL11
My short on Brazil’s small cap index (SMLL) is seeing a natural pullback within the broader downtrend and remains profitable in the portfolio.
The thesis is being tested as the Brazilian yield curve has loosened in recent days on news of weakening support for Lula’s reelection campaign, a clear reminder that the scenario remains heavily driven by election polls.
I'm staying in the trade as long as price holds below the downtrend resistance zone and the daily 50 EMA. I wouldn’t be surprised to see renewed selling pressure once we approach that region, potentially driving the index toward the final target marked on the chart.
$SMAL11
