SPX: Let's think outside the box!

9 thg 6, 2021

Hello traders and investors! Let’s take a look at how the SPX is doing today! Yes, this is the only index which is about to break a new record high, and that’s incredible, but what if I tell you that we have better options around? In the end of this analysis, I’ll present to you one example of a trade we did, looking at other markets, outside of the radar of most investors. Let’s see.

First, we have another example of a Trap Zone, in the 1h chart. The index is trapped between the resistance at the ATH and the 21 ema, which is going up. This squeezes the price, and eventually, SPX will explode, we just don’t know to which direction.

If it defeats the ATH, it’ll just keep flying, but if it loses the 21 ema, then the 4,180 is the next support. Let’s see the daily chart:



Yes, the index is performing amazingly well! We have a bull trend, and honestly, even if it drops again to the 4k I wouldn’t be surprised. But since March, we are going up roughly 10%. Which is not terrible, but if you know where to look, you may find some very impressive stocks in different markets.

I already told you the potential of some Brazilian ADRs yesterday (link below), and I still believe that some ADRs will outperform the US market in the next few weeks/months. Probably we’ll see a retraction soon, but this doesn’t ruin the bullish momentum we have here.

For instance, one of my recommendations was on CIG, which is going up almost 50% since my first call (Mar 5).



This happens because, despite the similar performance seen on SPX and IBOV, we have several undervalued sectors, and we can take advantage of this distortion. I gave several calls on Brazilian ADRs to my group, and all of them are performing insanely well.

Let’s think outside the box, if Warren Buffett likes to invest in other markets, like in Japan and Brazil, why wouldn’t you?

Remember to follow me to keep in touch with my daily studies, and support this idea if you liked it!

Thank you very much!