Brazil Is Going Vertical: 11 Straight Up Days And Now The Upside Panic Begins

Brazil goes vertical

What started as a bounce from must-hold support has turned into a proper squeeze. EWZ is up some 12% since we flagged the level in August, Ibovespa has rallied for 11 days straight and Brazil is finally catching up to the commodity bull.

But this has gotten very overbought, very quickly. Spot up, vol up and call OI building is classic upside panic. The Brazil bull remains supported by commodities and the macro backdrop, but after this kind of move, chasing it here looks increasingly uncomfortable.