How You Can Profit From Tariffs on Brazil and the Trade War
- On Monday, President Trump threatened to restore tariffs on Brazil and Argentina.
- But John’s Chart of the Week predicts a 16% climb for Brazilian stocks over three months.
- And he shares a way you can magnify those gains in even less time.
President Trump threatened to spread the U.S.-China trade war to South America on Monday.
He said the U.S. will restore steel and aluminum tariffs on Brazil and Argentina, effective immediately.
It sounds ominous for the economies in Brazil and Argentina.
But it’s typical jawboning. At the time of this writing, no U.S. department or agency had taken official steps to implement these tariffs.
Even if these tariffs are put into effect, and they increase materials costs and make a dent in economic activity, they won’t impact stock markets much.
Our Apex Movement Pattern (AMP) analysis tells us an index of Brazil’s top stocks is set to climb 16% in three months’ time.
There’s an easy way to tap into those potential returns.
And even better — there’s a way to get 10 times those returns in even less time!
It all starts with this Chart of the Week.
Let me show you how you can make money from the move our AMP setup predicts.
Here Comes a 16% Move for Brazil’s Top Stocks
This is a chart of the iShares MSCI Brazil ETF (NYSE: EWZ). It tracks stocks traded on Brazil’s largest exchange, and it includes a bunch of financial services, basic materials and energy stocks.
The exchange-traded fund (ETF) began climbing at the start of 2016. It’s tried a couple of times to make a new high this year.
It hasn’t yet.
But I want you to see two things on the chart above that tell me EWZ will make a new high and continue climbing:
- The blue lines reveal an ascending triangle pattern. It’s a common price pattern to look for in an uptrend. And it’s bullish when the price breaks above the top line of the triangle.
- I marked out an A-B-C uptrend. It’s a pattern that consists of three moves that finish at point C.
This tells me the price of this ETF could rise to at least $50 by March 2020. It could even go a lot higher than that in the quarters that follow.
That move depends more on how the trade war sits with investors. But it shouldn’t stop you from making money.
Make Triple-Digit Gains While Investors “Figure Out” the Trade War
The U.S. seems willing to expand the trade war so that China buys more soybeans from American farmers.
Let me explain what that means.
See, President Trump is using the threat of metals tariffs to pressure Brazil and Argentina to stop letting their currency values decline.
China buys soybeans from Argentina and Brazil. If their currencies get stronger, this would make U.S. soybean prices more competitive.
It’s a fine idea, but finagling currencies is never that simple.
Whatever happens, stick to your strategies.
Let price action — not news-driven volatility — guide your investment and trading decisions.
If you want to buy into the Brazilian stock market, you can do that with the iShares MSCI Brazil ETF I mentioned earlier.
But you can do a lot better…
Matt Badiali and I developed a strategy that can help you magnify your potential returns 10 times or more on any given trade.
In fact, we just spotted a trade setup that could earn you 200% if EWZ reaches $50 by March 20 of next year.
Click here to learn more about this strategy and see how you can start magnifying your gains!
Editor, Apex Profit Alert