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  The real has been gaining strength against the dollar steadily for the last five years.  This will only increase as the commodity bull market continues.  Foreign currency reserves total a hefty 203 billion dollars.  They are getting their financial house in order and foreign direct investment is booming. 

Brazil's Real is the most overvalued currency according to the all powerful Goldman Sachs (NYSE:GS). The bank says a 2% tax on foreign purchases has yet to prove effective at control, as a "wall of money" has led the real to appreciate 34% this year.
You can jump on the bandwagon and go short the WisdomTree Dreyfus ETF BZ Real Fnd (ETF) (NYSE:BZF).

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"While we could see a short-term rally, I'm growing more convinced that the dollar is heading much lower," says Ron Rowland. In Money & Markets he looks at ETFs to play this trend.

"In just the last eight months, the U.S. Dollar Index (DXY), which measures the strength of the dollar against a basket of major currencies, plunged more than 15%. 

"One of the main reasons this trend is likely to continue is that the people who have the power to do anything about it — namely the Federal Reserve, Congress and the Obama administration — are perfectly content with the situation. 

One kind of soft week in the market and all we can find is a handful of new buy signals during our technical analysis of more than 800 ETF stock charts. At least there is a hint of a common theme peeping through the grey clouds as 2 biotech ETFs made our buy list this week. They add to last week’s buy signal on 2 other biotech ETFs.

An interesting way to trade these ETFs would be to buy them and short the S&P 500 or buy an ETF that goes up when the index falls, like Short S&P500 ProShares (SH). As long as these ETFs outperform the S&P 500, you make money:

We know what the US market is doing, shrugging off every single negative news and floating higher almost effortlessly. But what about the emerging markets?

One of the strongest emerging markets before the recent bear market was Brazil and it has come roaring back with a vengeance. If you think the recent gains, whether a bear market or the real thing, are impressive, then consider Brazil’s gains.