Continued turmoil in Russia has the Market Vectors Russia ETF ( RSX , quote ) down another 5% in trading today on strong above-average volume.
Yesterday Russian police arrested 300 with Moscow seeing its largest protest rally in years over charges of election fraud. Russia elite troops are patrolling Moscow streets Tuesday with more than a dozen opposition protestors arrested, according to the Dow Jones Newswire. Lifting the hood on the RSX to find the top two holdings, traders discover OAO Gazprom ADR ( OGZPY , quote ) and Lukoil ( LUKOY , quote ), both down more than 5% today. With Russia being the largest oil producer in the world and extremely rich in other natural resources, RSX can only benefit from commodity price inflation as central banks around the world fire up the printing press. RSX is trading around $29 a share, slightly above the 50-day moving average, which appears to be acting as support during the U.S. trading session. Stronger support is at the upward trend line that intersect the 61.8% Fibonacci level at $26.85. The RSX along with many of its constituents are cheap even for Russia but with the real possibly of continued protest overnight they may even get cheaper before reversing. Traders looking to gain exposure to Russia should be patient and let the turmoil play out. We'll take a technical look at OGZPY and LUKOY from the energy sector and telecom carriers Mobile TeleSystems ( MBT , quote ) and Vimpelcom ( VIP , quote ) in the next couple of posts. We'll also take look at how the ruble is faring against the U.S. dollar.
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