ECH is the iShares Chile ETF, with a basket of local stocks from the Santiago bourse. But really and truly it’s less a play on companies and more a play on the CLP, as this one year chart shows.
So with copper looking like it will be used as a “Obama stimulus will save us all” vehicle to the upside, playing the CLP via this ETF is a simple alternative that may offer decent leverage in the next couple of weeks. Today ECH stands at $33. I’d envisage this as a short-term play and would provisionally target $40 or so, I suppose, without getting too slide-rule accurate or deep into my own calculations. That target could adjust at any moment. Here’s the price chart for ECH that shows how it’s come back from the doldrums but has plenty of room before it regains its mid 2008 position.