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-point mark, and a defensive stance resurfaced.
The volume of successfully bottom-fishing trades over the past few days, along with the volume of trapped trades in the 1300-point region, was released, putting downward pressure on most stocks, including the strongest ones. In such sessions, the range of stock prices is forced down, and the 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. The rest needs to observe how much the green price region is pressured and the ability of the buying power to withstand the pressure. With the “original 1300-point” 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 focus was on the highly concentrated cash flow, and stocks with higher-than-average liquidity, along with a strong increase in price range and a slight retreat from the peak, are healthy stocks with a good ability to absorb short-term holdings. Stocks are diversifying in strength as cash flow has not spread widely. The blue-chip group showed better signs of attracting cash flow, maintaining price stability better than midcap and penny stocks. This is reasonable because large cash 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 upward phase and in the old peak region. 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 its old peak. Therefore, when trading, observe the specific price base 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 price base can be bought at a lower price due to general psychological pressure. In sessions like today, healthy stocks are revealed, and a good portfolio is unaffected.
Today’s derivatives market was difficult to profit from, although the VN30 index rose quite strongly, most of the increase was in the jump at the beginning of the session, while the intraday fluctuations during the session were very narrow, and the basis differed quite widely. The points where VN30 exceeded 1367.xx were not effective for Long, and the breaking 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 remain strong. Cash flow into blue-chip stocks is positive, 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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