Many traders are looking for a way to play the potential for higher oil prices via the equity markets. Credit Suisse believes investors can obtain exposure to the higher oil trade through Russia’s equity markets:
Key cyclical drivers for Russia remain supportive: Oil prices and international interest rates. We believe Russia is one of the economies that benefits most from the high crude oil price and this is likely to support near-term outperformance of this market.
BUY Russia via the RTS Index in USD for one full position in our Research Weekly portfolio. Stop loss: –5.0%
The RTS index remains in a steady upmove. The index has just reached the 2000 threshold. A brief halt at this key mark is possible but the technical structure of the index looks positive. The short and medium-term momentum oscillators are rising and are supported by the corresponding trends. Furthermore, the long-term cycle is in the early stage of a new bottoming and turnaround process above the zero line. Therefore, we expect a further advance towards mid-Q2 2011. The next key resistances are at 2100/20 and 2235/50.
Source: Credit Suisse
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.