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, led to a sell-off, 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.
By the afternoon, many stocks had been pressured to fall below the reference price. Such stocks are weak, at least for this session. For the rest, it’s necessary 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 three-session bounce is still considered a “test” of the peak again, and it is unclear if 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, are robust stocks with the ability to absorb short-term trades well. Stocks are differentiating in strength as cash flow has not spread widely. The blue-chip group showed better money-attracting signals, maintaining more stable prices than mid-cap 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 supply phase in the uptrend and within 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 peaks at all but were psychologically influenced when the VN Index approached the old peak. Therefore, when trading, observe the specific base price of the stock.
Maintain the view that the market is positive; 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 revealed, and a well-constructed portfolio remains unscathed.
Today’s derivatives market was challenging to profit from, although the VN30 index rose quite strongly. Most of the increase occurred at the jump at the beginning of the session, while the intraday fluctuations were very narrow, and the basis differed significantly. The points where VN30 exceeded 1367.xx were not effective for Long, and the breakdown points of 1367.xx did not yield 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-chips is positive, and large-cap stocks continue to provide support. VN30 outperformed the VN Index. The strategy remains to buy stocks, Long/Short flexibility 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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