EWW Forecast + Trading Strategies


Bullish Case: Energy reforms and favorable trade policies could fuel economic growth. High institutional interest and elevated call option volumes highlight growing bullish sentiment. The EWW historical price return favors high potential gains.


Bearish Case: Current price trends show mean reversion patterns and declining volumes. The ETF shows a negative price return over the last three months, indicating continued downside risk. Implied volatility suggests higher uncertainty.


Potential Outcomes:

1. Price uptick due to institutional investments and energy reforms (45%).

2. Continued mean reversion and downside due to macroeconomic factors (35%).

3. Neutral trajectory with minimal change (20%).


Trading Oracle: Trade a bullish call debit spread: Buy 1 $60 strike call, sell 1 $61 strike call, expiring 09/20/2024. This captures potential price increase at a high reward-to-risk ratio. Probability of profit: 65%. Favor a bullish stance due to institutional interest despite bearish macro signals.


July 23, 2024


iShares MSCI Mexico Forecast

EWW      iShares MSCI Mexico











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