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April 26, 2013  Fri 2:45 AM CT

EWZ: SEE CHART GET CHAIN FIND STRATEGIES
Call selling led yesterday's option activity in the iShares Brazil Capped Index Fund.

More than 13,000 EWZ May 57.50 calls traded, compared to the previous open interest of 4,374 contracts at that strike. Almost all of the volume was sold, with the biggest block of 5,000 going for $0.13.

The calls may have been sold naked with an initial bearish bias. Alternatively, they could have been traded against long shares in a covered call position, which would be bullish up to the $57.50 strike price but not beyond. (See our Education section)

The EWZ gained 0.5 percent yesterday to close at $54.56. The exchange-traded fund has been rising for the last week off its 2013 lows and is now in the middle of its recent range. Shares encountered resistance at the $57.50 level six weeks ago. 
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Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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