Fools Russian Where Angels Fear to Trade

On an otherwise slow morning, Russia is gapping free and clear above prior resistance on its country ETF daily chart (RSX), a scenario we outlined for Members last night in the full video recap. 

It is understandable that many traders would shy away from even looking at Russia these days, what with all of the geopolitical risks, not to mention crude oil risk as Russia is a petro-sensitive economy. Still, there is no denying that Russia has been as strong as any emerging market, arguably sporting as impressive a chart as any emerging or frontier economy around the world. 

In terms of specific plays, we have outlined a few previously. But Mechel steel should also be on watch, based on Moscow. On the MTL daily chart, below, we can see a similar base to what RSX had before the gap up this morning. MTL is also higher, but could easily just be getting started with a new leg higher. Granted, this play carries additional risks, beyond being smaller and a bit thinner than desired. But the prospect of a multi-year trend reversal is still prominent for most things Russian. 

Elsewhere, of all the earnings reactions from last night, the WYNN strength has me most interested, especially a day after LVS had gotten whacked.