Russia Bears Watching for Love

In the midst of the snapback rally in crude oil and energy stocks, Russia has stopped going down for now. The RSX, country ETF for Russia, seen below on the daily timeframe, shows a consolidation pattern which has morphed into a sideway channel. Bears have thus far failed to crack it lower, perhaps blinded by love for a crash in crude and failing to recognize the temporary bottoming signs in place for energy and energy stocks. Thus, RUSL is on my radar as a levered long play, especially if RSX holds over $15.30 today. Regarding the broad market, we have a rally led but the Dow and small caps, though the biotechs are lagging noticeably. I am close to cutting my small cap short position if there is no reversal soon. My airline shorts continue to work well, in line with the oil stabilizing thesis.