The EWZ setup large-caps miss

The thesis

Small-cap breadth is basing in a way that usually precedes leadership.

The special situation here is mispriced relative to the catalyst path.

What I'm watching

• the catalyst timeline
• the catalyst timeline
• A clean move through the level I flag below

Positioning

Short on EWZ, 1-6 months horizon. Conviction: Medium. A risk-off turn hits small caps and EM first; defined risk.

Opinion, not investment advice. The author may or may not hold positions discussed.