Cold War

Russia is in the news this morning due to the Hacking Scandal so that inspired me to take a look at the Russian markets and to watch Rocky kick Drago's ass for the millionth time.

RSX is the VanEck Vectors Russia ETF.  It seeks investment results that correspond to the price and yield of the MVIS TR Index, which tracks publically traded companies that are domiciled in Russia.

There is an interesting dynamic occurring here.  It has reached the same levels that it did in May of 2015.  Back then it went into a large selloff afterwards.  Will the same thing happen this time?  It is too soon to tell but the important thing is that when markets reach levels that were prior important highs, as is the case here, they tend to consolidate and then make a large move either up or down.

My strategy then is to be patient and wait to see which way the new trend will develop.  For example, $20.50 has been the bottom of the recent range.  If it breaks that level to the downside to could indicate that the trend will be lower.  $21.50 has been the top of the recent range.  If it breaks that to the upside that could mean that the new trend will be upwards. So this isn't a recommendation...I'm just letting you know that it's on my radar screen because I think there may be a trade here over the next few weeks.

A more aggressive way to play this impending move could be with RUSL or RUSS.  RUSL is the Direxion Daily Russia Bull 3x Shares and RUSS is the Bear 3x.  These leveraged ETFs have the objective of moving 300% pf the performance of the Market Vectors Russia Index.

 

USA! USA! USA!