Earlier today, Russian President Vladimir Putin signed a treaty to annex the breakaway Ukrainian region of Crimea. Putin then went onto say, “Don’t believe those who say Russia will take other regions after Crimea. We don’t need that.” These words have seemed to calm down the stock market today. Just look at the way the stock market is rallying in the United States and Europe during today's trading session. Risk-on trading is back, at least for the time being.
So is it time to buy into the Russian stock market again? This morning, the Market Vectors Russia ETF (RSX) is trading higher by nearly 4.0 percent to $23.35 a share. The RSX put in a near term bottom on March 13, 2014 at $20.86 a share, so traders can easily see the short term momentum in the RSX is to the upside. Traders and investors should watch for major daily chart resistance around the $26.00 level for the RSX if it trades up to that level. After all, this coming Friday is the monthly options expiration for the month of March, so we often see beaten down equities catch a bid into the expiration. President Putin also has a tendency to rescind what he says after a few days. Traders should expect the RSX to start to decline around the $26.00 if it can trade that high, this could be a good shorting level for aggressive traders.