Russian Stocks Fall

By www.ProfitableTradingTips.com

http://profitabletradingtips.com/trading-investing/russian-stocks-fall
Sanctions by the West have hurt the
ruble and Russian stocks.

Now we see that Russian stocks
fall again, as President Obama
indicates that sanctions have been
extended for a year.

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the biggest exchange-traded fund
tracking russian stocks dropped the
most in a week after president barack
obama said the u.s. will extend some
sanctions linked to the ukraine
conflict and as oil prices declined.

the market vectors russia etf tumbled
2.8 percent to $17.43 in new york
wednesday.

brent crude, the oil grade traders use
to price the country’s main export
blend, slid 0.8 percent to $60.55 a
barrel after dipping below $60.

oao sberbank sank 4.1 percent and oao
mobile telesystems fell 4.6 percent,
leading declines among russian
american depositary receipts.

the etf and stocks retreated as
obama, in a notice to congress, said
visa bans and asset freezes on russians
the u.s. believes to be involved in the
ukraine crisis will be extended by a
year.

the sanctions, which were set to
expire this month, were initially
introduced after president vladimir
putin annexed crimea in march 2014.

the u.s. and its allies have imposed
other measures, including
international financing restrictions
that are helping push the country
toward a recession.

So long as Russian holds on to Crimea
and actively supports separatists in
Ukraine sanctions will likely continue
keeping Russian stocks down. And then
there is the issue of oil.

Oil, the Ruble and Russian
Stocks

Forbes offers the opinion that recent
oil forecasts will not please Russian
investors.

russia investors aren’t going to get
any near-term relief from oil prices.

following a short spike in oil in recent
weeks, crude is expected to get
cheaper in the days ahead, barclays
capital said in a report released on
monday.

falling oil prices is bad for russia day
traders, who have been buying and
selling based on a combination of
geopolitics and the direction of crude
oil futures.

looked at over a short period, the
market vectors russia (rsx) exchange
traded fund by van eck global has
decoupled from oil year-to-date.

rsx is up. oil is down. but the upside
there has been entirely due to the
fighting in ukraine.

talks of peace deals and renewed
fighting with pro-russia rebels in
eastern ukraine keep rsx volatile way
more than oil.

however, over a longer period of time,
the popular market vectors etf tracks
oil quite closely.

over a five year period, the russia etf
is down 44% while the s&p gsci crude
oil index is down 52%.

Short term trading can be profitable if
there are two possibilities for a stock,
up and down.

When the prevailing sentiment is that
Russian stocks will fall traders had
better be shorting those stocks or
staying out of the market.

How about the Very Long
Term?

The so called blood in the streets view
of stock trading might have it that
now is the time to invest as Russian
stocks fall.

Certainly Exxon’s approach is to take
the long view in its dealings with
Russia.

exxon mobil corp. shook off the chill
of sanctions and continued to snap up
drilling rights in russia last year,
giving it more exploration holdings in
president vladimir putin’s backyard
than in the united states.

taking the long view, irving-based
exxon boosted its russian holdings to
63.7 million acres in 2014 from 11.4
million at the end of 2013, according
to data from u.s. regulatory filings.

that dwarfs the 14.6 million acres of
rights exxon holds in the u.s., which
until last year was its largest
exploration prospect.

while u.s. and european union
sanctions against russia forced exxon
to shut down an arctic drilling project
in october

there were no legal obstacles barring
the company from staking claims to
areas that could yield tens of billions
of barrels in coming decades.

The point is that as Russian stocks fall
there are deals to be had by anyone
with enough cash and the ability to
wait out the current difficulties.

Russian Stocks Fall

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Russian Stocks Fall