The Case for a Non-OPEC, Oil-Rich Country ETF

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( ETF Expert) -- Renewed fears over Thursday's deadline for Greece's debt swap with private bondholders served as the excuse. The truth is, the price of the S&P 500 had lived more than one standard deviation above a 50-day moving average since the last trading day of 2011; stocks were nearly certain to pull back.

It's not like warning lights weren't flashing yellow for several weeks. The DJ Transportation Index failed to confirm the Dow Jones Industrials' run at 13,000. Small caps had severely lagged large caps on a month-over-month basis. The materials segment had struggled since January. (Note: Investors may want to review my February 8 commentary a month before the fact, Consider a Temporary Portfolio Hedge With a Volatility ETN .)

The U.S. stock market is likely to take most of its cues from employment data on Wednesday and Friday (3/9/2012). That said, one might still expect a "pop" or a "drop" on the progress (or lack there of) in Greek sovereign debt dealings.

In brief, assets that were beaten the hardest by the ugly stick in Tuesday's action (March 7) could bounce the highest on news of a private bondholder agreement. Indeed, it's hard to imagine that there won't be a band-aid for the clinging.

Here, then, are some of the ETFs that received the harshest Greek drama-related punishment:

Indeed, member nations of the European Union experienced monster losses in the course of a single day. However, the size of those losses are magnified by the fact that these stock ETFs are unhedged; that is, the euro-dollar's significant decline in the trading day created more dramatic declines than what might be attributable to the selling of foreign equities alone.

Some traders may not care. Keep in mind, many of these same stock ETFs may surge 3%-4% on word of a Greek deal and on short covering.

Personally, I haven't gone near Europe for years, and I am still unwilling to do so. However, if you beat down non-OPEC oil plays like Market Vectors Russia ( RSX) and iShares MSCI Canada ( EWC) enough, you're going to get this adviser's attention.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

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