The Russian Connection

Many investors were extremely excited when the Russian ETF (RSX) debuted in May 2007. While it’s been a bumpy ride, the bias at first was definitely to the upside as the 1-year chart shows:




From the top, which was made on May 19, 2008, it’s been all downhill, and YTD this ETF is down some 23%. Russia’s recent “excursion” into Georgia has not given the world community a warm and fuzzy feeling, which contributed to the recent acceleration to the downside.

Since breaking the long-term trend line to the downside, RSX has lost 21%. As always, this serves as a reminder of the importance of watching where the trend is headed to avoid either giving back all of your profits or limiting your losses.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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