Brazilian-Russian Stock Market Linkage Trends


By G. R. Harrison (2014)


Charts courtesy of Yahoo Finance
Click on chart to enlarge for clarity

Brazil, another one of the BRIC countries (Brazil, Russia, India, China) is now up for examination.

We’re looking only at the Brazilian Stock Market (IBovespa) at this time.

The stock market bottom for Brazilian Stocks is amazing in it’s exact synchronization with Russia’s Stock Market as previously examined in our article and charts yesterday.

But, Brazil didn’t have ‘sanctions’ leveled against it, yet it also, like the Russian Stock Market declined first, made the same date bottom and has been rising since that bottom in lock-step with Russia.

Brazilian stocks have, on average, made gains of 20% since their Lows while Russia’s stock market has gained 10% in the same time period.

The similarity of two markets so widely separated by their politics and world attentions tracking the same financial paths gives pause for reflection.

This is a good example of politics being used as a smokescreen for grander financial plans by powerful interests.

While the ‘news’ misdirects like a good magician, the profitable markets-of-opportunity are scooped up for quick profits before the rest of the world knows what happened.

realTo get a broader view, I’ve included a currency chart for the Brazilian Real.

The REAL, like the Russian Ruble, has also been declining in value.

Presently, it’s showing support in the 2.15-2.20 area.

Should prices rise to hit the green circle price area, then, a new uptrend will likely engage and push the REAL upwards.

If prices drop to the lower red circle area, then support has failed and a renewed downward movement is highly likely which could drive the REAL to declines of .20-.25.

The daily and intradaily movements of currencies and stocks easily mask the true intentions of the main players from the general public. That’s exactly what they’re designed to do; leave average investors confused and hesitant.

That is, unless one has a method of market analysis that can uncover such grand strategies as they’re being implemented. Those critical early decision points are what’s illustrated on these charts with the red and green circles. See lower on the page to learn more about the Excalibur Method used on these charts. – George

NOTE that all charts show hypothetical decision points as part of this website’s educational content. All trading is risky. Please read the Disclaimers on this site.