Thoughts on the causes of the growth of the market

On Wednesday, Russia's stock market continued its upward flight, being able to update the inertia of the maximum annual levels of the MICEX Index (1,245.73 points) and RTS (1,297.13 points). Develop positive momentum helped us a positive external background, plus the internal factors such as the strengthening of the ruble and the desire to earn money on the cheap. As leaders of growth on MICEX today, shares of oil and gas and financial sectors.

Over the past 3 days our stock indexes rose swiftly and strongly. Why? First, our market is very much cheap money and the players who play long in one direction - up. Secondly, because of the low number of securities in the free float market easily move up even small amounts of applications. Thirdly, are reinforced ruble makes investments in Russia's assets for non-residents is extremely beneficial, which again washes away from the market of paper. And, finally, a large number of commercial robots can maintain activity in the current trend, that is, to make a growth.

However, growth is not eternal, and the market always takes the current overbought. Fortunately, the players have short memories, because today almost no one remembers what we have experienced falling just three days ago, when the MMC and Sberbank lost almost 7%. All this suggests that Russia's stock market is the most speculative in the world in the light of existing free-float of securities and the number of committed transactions at the exchanges. This is good or bad? I think this is normal. Just be aware that the last time on the exchange came not only high liquidity, and volatility. Therefore, to construct trading ideas need to reflect these factors.

Shares Gazpromneft (4%) and Rosneft (3%) now easily upgrade their maximum annual marks. Shares of Sberbank (2.4%) reached their peaks, stopping growth at 63.25 rubles. This strong bull signals which indicate that after a small correction of our stock indexes may go to new heights. Today, after the end of the trading session in the United States reports the U.S. aluminum giant Alcoa. If the forecast of its profits will fall short of market expectations, and we just get the opportunity to correct, otherwise, the RTS index is easy to overcome the bar for 1300 points.

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