As you well know, my strategy is to be invested in sectors …
with more relative strength (for this strategy I use ratios) with a particular focus on the commodities sector. To diversify as much as possible, today I analyze the index of Russia which – in silence and without anyone talking too much about it – is performing very well in the wake of the strength of the Oil Stocks (+ 15% YTD)
Here are the charts of the monthly RTSI index and then compared with the Lukoil stock listed in London
In a diversification strategy I believe both the stock and the index to be included in the Portfolio, paying attention (for the stock) to seize the right moment that could be when the price exceeds the resistances and the trendline
The monthly RTSI chart suggests a broad accumulation base that could be the prelude to a further rise in the medium term: if the RTSI rises it means that Lukoil could follow too (and vice versa)
The seasonality of the last 25 years tells me that the next 2 months are usually very profitable while in the last 5 years the accumulation in this period has given excellent performances until the end of the year.
LAST 25 YEARS
LAST 5 YEARS