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-fishing trades over the past few days, along with the volume of trapped trades in the 1300 range, was released, 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. The rest needs to observe how much the green price range is suppressed and the ability to withstand buying 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 highlight is that the money flow is very concentrated, and stocks with higher-than-average liquidity, along with a strong price range increase, are robust stocks with the ability to absorb short-term holdings well. Stocks are differentiating in strength as money flow has not spread widely. The blue-chip group has better money-attracting signals, maintaining price stability compared to mid-cap 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 supply phase in the uptrend and within the old peak area. 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 are not really at their peak at all but are psychologically influenced when the VN Index approaches its old peak. Therefore, when trading, observe the specific price foundation of the stock.
Still holding 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 foundation can be bought at a lower price due to general psychological pressure. In sessions like today, robust stocks are exposed, and a good portfolio is unaffected.
Today’s derivatives market is 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, while the intraday fluctuations during the session were very narrow, and the basis differed quite widely. The points where VN30 exceeded 1367.xx are not effective for Long, and the breakdown points of 1367.xx are also not paid the corresponding basis.
The profit-taking session this afternoon created different price effects; purely looking at the VN Index shows weakness, but many stocks remain strong. Money flow into blue-chips 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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