World Cup Fever Spreads to the $BRIC Countries; Watch Breakout to Upside

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

World Cup Fever Spreads to the $BRIC Countries; Watch Breakout to Upside

With the US and EU markets starting to feel frothy at this stage the Emerging markets, $EEM and $BRIC are on smart monies radar.

Asia has been in play for the last month, specifically Japan and $S. We are seeing that Russia is back in favor now that the Ukraine situation, at this time, is less tense. There is also some momentum for Brazil with the World Cup going well and Sugar ($SGG) prices starting to rise, these could be the catalysts that will push these markets to upside.

Now we have to be careful of China and India may need to pullback from their current levels but the upside is still the main play. You can look at the $RSX to play Russia and the $EWZ for Brazil.

We are also watching Oil ($USO) very closely with the Iraq situation starting to heat up. This could put further pressure here in the US markets, and may catalyze these emerging markets. Will post more when we see opportunities arise.

See you next time at Karpel’s Corner!