By now I guess
everyone knows the drama about Trump’s campaign with his view about Russia and
Putin. In a drastic contrast to the attitude of Obama and H Clinton who treat
Russia as a pure enemy, Trump has a more friendly attitude towards Putin.
Needless to say, since Trump’s win, people have suddenly started to chase
Russian stocks. The ETF for Russian stocks, RSX, has jumped about 20% since
early Nov.
Actually long before
the election, technically and
fundamentally RSX has already poised to go up as I have suggested. Even though the
Russia’s market is by no means safe, it was simply too cheap to ignore and its
technical pattern has already suggested a good up run for many months. Congrats
if you listened to me and bought RSX. But I have to caution you that don’t be too
complacent. After all, Russia is still a risky market. Right now it is
experiencing a honeymoon with Trump but it won’t be a smooth line up. While it
is still fundamentally cheap, technically it is quite overbought and is due for
a quick correction any time now. When that happens, it could be fast and
drastic as well.
Taking
some chips off the table to lock in some profits is a wise action I can advise.
Treat it as an early Christmas gift from Trump and Putin’s political honeymoon!!
No comments:
Post a Comment