Even though, I said the Russian Stocks are ready to BOOM, I was a little wrong with timing. It looks like at the near future we will be facing a profit taking across all major sectors. Oil has already failed to rise above 75$ (for the 4th time already!) and some negative news have send US stocks also lower. Thus, I would advice to sell your longs and step back for awhile.
The current action looks like a classic distribution by bigger players, who were unloading their longs into the crowd. For the past couple of days, every open was met by a selloff.
My projection, is that we are stuck in a conjection area (20.00-25.00) for some time. I expect the market to continue lower, and RSX to reach 21.00-20.00 at some point. That’s a great buying point, which should coincide with 950-960 in SPX.
