The enthusiastic upward momentum in the morning triggered short-term profit-taking trades in the afternoon, creating noticeable pressure. The VN Index once again climbed close to the 1300 mark, and a defensive stance resurfaced.
The volume of successfully bottom-fished stocks over the past few days, along with the volume of stocks stuck in the 1300 range, led to a sell-off, putting downward pressure on most stocks, including the strongest ones. In such sessions, the range of price suppression, along with large or small volume, reflects the resistance.
Many stocks fell below the reference price by the afternoon; such stocks are weak, at least for this session. For the rest, it is necessary to observe how much the green price range is suppressed and how well the buying power can withstand the pressure. With the “original 1300 points” statement, the 3-session bounce is still considered a “test” of the peak again, and it is unclear whether there will be a breakthrough. Therefore, short-term profit-taking or reducing holdings is normal.
Today’s highlight is that the money flow is very focused, and stocks with higher-than-average liquidity, along with a strong price range and a slight price retreat from the peak, are robust and can absorb short-term stocks well. Stocks are diversifying in strength as money flow has not spread widely. The blue-chip group showed better signs of attracting money flow, maintaining price stability better than midcap and penny stocks. This is reasonable because large money flows usually choose blue-chip stocks or stocks with sufficient liquidity to operate.
The market is still in the testing phase for supply in the uptrend and within the old peak range. Note that the VN Index is not homogeneous with stocks, and the peak of the VN Index is not the peak of the stocks. Therefore, many stocks that were sold off today were not actually at their peak at all but were psychologically influenced when the VN Index approached the old peak. Therefore, when trading, observe the specific price basis of the stock.
Still maintaining the view that the market is positive, stocks that have risen rapidly in recent days may slow down a bit, and those that are still forming a base, the price may bounce back due to general psychological pressure, can be bought additionally. In sessions like today, robust stocks are revealed, and a good portfolio is unaffected.
Today’s derivatives market was challenging to profit from, although the VN30 index rose quite strongly, most of the increase was at the jump at the beginning of the session, but the intraday fluctuations during the session were very narrow, while the basis differed quite a bit. The points where VN30 exceeded 1367.xx were not effective for Long, and the breakdown points of 1367.xx did not get the corresponding basis.
The profit-taking session this afternoon created different price effects; purely looking at the VN Index shows signs of weakness, but many stocks are still strong. Money flow into blue-chips is good, and large-cap stocks are still supportive. VN30 is much stronger than VN Index. The strategy remains to buy stocks, Long/Short flexibly with derivatives.
VN30 closed today at 1360.58. The nearest resistance for tomorrow is 1368; 1376; 1380; 1388. Support is at 1357; 1348; 1341; 1333.
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