Wednesday
Feb032010
Russia Remains in an Uptrend
Wednesday, February 3, 2010 at 03:47PM Most equity indices across the globe broke their short-term uptrends and moved below their 50-day moving averages on the most recent downturn. Russia's main equity market index, the RTS, bucked the trend and held support at its 50-DMA, however. Since bouncing off of its 50-day, Russia has done well and continues to look good from a technical perspective. The ETF that tracks Russia (RSX) looks about the same.
Reader Comments (1)
Russia is a compelling investment opportunity in the wake of high commodities prices recorded over the last 6-9 months, and projected over the coming 6-9 months. But, its technical appeal has much to do with its high beta nature, and should not be read too literally.
While i have little doubt that the Russian market will go higher this year, the cooling in China (as reflected in your recent Baltic Dry comment) has immediate implications for Russia. This is a market that you want to be involved with, but only chase it if you are focused on relative performance to a benchmark. Otherwise its volatility will create windows - but then you might want to take a look at URKA in the near term.
http://www.market-melange.com/2009/11/18/russia-2010-worth-a-tactical-look/