Last Friday I closed my long position in the Russia ETF (RSX) at $24.80 which is equal to my initial buying price. As I mentioned in this post, if the RTS index were to have a weekly close below 1220 I would close the trade. As it turned out, the RTS finished the week on August 1st at 1212 for a second false breakdown this year making the triangle pattern unreliable.

I was hoping to wait and sell out at a better price, but the geopolitical situation in Russia seems to be deteriorating and beyond my area of competence so I decided to close the position before the weekend.

My rationale for the trade was based on the chart and valuation. While Russian equities remain extremely cheap relative to other markets and its own history, it can remain so for years. I was hoping the false breakdown would signal that Russian stocks were ready to close the valuation gap, but the unexpected shooting of flight MH-17 along with the increased sanctions between Russia and NATO countries has trumped the chart.