Should Investors Trust Putin?

Published 03/04/2014, 10:40 AM
Updated 07/09/2023, 06:31 AM

Market Vectors Russia ETF

Russia spent a few years and a few Dollars building the Olympic village and getting ready to host the games. Did Putin blow all that goodwill in the few days following the closing ceremony? I'll leave that for others to debate.

Twice In 2 Years

The above chart reflects that the Russia ETF (RSX) was, just before the games began, weak and near falling resistance, before the games and troop movement began. RSX is down almost 50% in the past three years and is now hitting the 61% Fib level of the financial crisis -- the second time in two years.

Should traders trust Putin or the Power of the Pattern at this point? Potential double support is at hand. Taking a bigger view of the pattern, a descending triangle is in place suggesting that if support is taken out, the declines in Russia are far from over.

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