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 stocks stuck in the 1300 range, were offloaded, putting downward pressure on most stocks, including the strongest ones. In such sessions, the range of price suppression, coupled 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. The rest needs to observe how much the green price range is suppressed and the resilience of the buying power.
With the “original 1300 point” statement, the three-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 was the highly concentrated cash flow, and stocks with higher-than-average liquidity, along with a significant increase in price range and a slight retreat from the peak, are robust stocks with a good ability to absorb short-term stocks. Stocks are diversifying in strength as cash flow has not spread widely. The blue-chip group showed better signs of attracting cash flow, maintaining 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 on the upside and within the old peak range. It should be noted that the VN Index is not homogeneous with stocks, and the peak of the VN Index is not the peak of stocks. Therefore, many stocks that were sold off today were not actually peaks at all but were psychologically influenced when the VN Index approached the old peak. Therefore, when trading, observe the specific stock price.
Still maintaining a positive market view, stocks that have risen rapidly in recent days may pause, and those that are still forming a base can be bought at a lower price due to general psychological pressure. In sessions like today, robust stocks are exposed, and a well-constructed portfolio remains unscathed.
Today’s derivatives market was challenging to profit from, although the VN30 index rose quite strongly, but most of the increase was at the jump at the beginning of the session, and the intraday fluctuations during the session were very narrow, while the basis differed significantly. The points where VN30 exceeded 1367.xx were ineffective 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. Looking purely at the VN Index, there are signs of weakness, but many stocks remain robust. Cash flow into blue-chip stocks is positive, and large-cap stocks are still supportive. VN30 outperformed the VN Index. The strategy remains to buy stocks, Long/Short with flexible 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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