This post was just published on ZYX Emerging Alert.
Upgrading Russia to Buy both in the short-term and medium-term. Long-term remains a Buy. The ETF of choice is Market Vectors Russia ETF RSX.
Economy of Russia is heavily dependent on the export of commodities. This morning’s employment report in the United States, indicates that commodities from a trading perspective may be bottoming.
The Department of Labor released blowout employment numbers. April Non Farm Payroll numbers rise by 176K vs. consensus of 166K, more importantly the whisper numbers were under 140K. It is important to note that February Non Farm Payrolls have been revised to 332K from 268K, this is a huge revision upwards.
Money managers may start a search for lagging markets. Russia has been a lagging market as shown on the chart. Our objective is to simply get ahead of the money managers.
The chart also shows there is plenty of room for the market to run up.
