I see good signs in the market this week. The moving average lines are beginning to cross to the upside (See the 5 SMA crossing above the 10 SMA…this isn’t a major bull sign or anything but it means that the market is beginning to beat the drop we’ve had).

I like that the DOW is above the 200 SMA. Hopefully, the S&P 500 will get there soon.

With that said, I think it bodes well for us to be a bit isolated from the volatility that I expect we’ll see this week with the elections. While I’d love to see the market ignore politics, it just doesn’t happen and it’s almost impossible to assess how much of that is baked in.

Gol Linhas Aereas Inteligentes (GOL) is a Brazilian airline play that I have my eye on this week. I’m looking at the price around 10.47 for Friday’s open as my entry. If that doesn’t fill, I’ll reevaluate sometime later Monday. I’m really in no hurry to get into the market this week due to the politics that are going to impact the market.

Note how the stock seems to come down to the 5 SMA and rebound off of it (It does go below it some but it doesn’t seem to sink too far below).

The ETF to watch for Brazil is EWZ. A strong move up for EWZ is good news for GOL.