Special Report: Is Russia the sick man of the BRICs?

The relative performance of the BRIC countries has been marginal this year, but the technical improvements are getting a lot of attention. We’ve been spending the week looking at what’s changed, and where the BRICs might go next.

We’ve already seen how Brazil and China show similar trading patterns, while India has launched a pretty recovery of its own. Today we make our final stop and see how Russia is bringing up the rear.

Russia is an energy titan, and the Market Vectors Russia ETF Trust (RSXquote) is full of energy stocks. But considering that crude oil is above $108 a barrel and Russia is a major oil exporter, the chart is a  disappointment.

The RSX ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal® Russia+ Index. The fund normally invests at least 80% of its total assets in securities that comprise the index. It uses a “passive” or indexing investment approach.

On technical bases the RSX continues to languish in a trading range 25% below last year’s peak.  Although  the price is close, it has not mustered enough energy to make the breakout move through the resistance level. The price is now trading below its 200 day moving average. In contrast, RSX’s fellow BRICs are above their respective averages.
Russia is hardly the “sick man” of the BRICs, but it’s got a long way to go to catch up with Brazil, China and India.

The Bottom Line:

The BRIC emerging markets may not be leading the S&P 500 at this point in time, but 3 out 4 have made key technical breakthroughs. Only time will tell if they can continue — but their conditions have indeed changed for the better, and they warrant being on traders’ radar screens once again.

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