Small accumulated losses over several sessions have grown, eventually prompting aggressive stop-loss action. Combined with large declines in the pillars, VNI lost more points, creating a selling spree this afternoon. This is an opportunity to observe stocks that are stronger than the index.
The liquidity of the two exchanges today increased to approximately 15,000 billion (excluding agreements), which is not significant, just about the average of the last week of August. However, stocks and indices had a session of widening the price range. This is a consequence of bottom-fishing money that is very patient, refusing to chase prices up and only placing buy orders in the low-price region. As long as the price widens the range down, it will touch this demand and push up liquidity.
After many sessions of slight decrease in the market and no longer expecting to exceed the 1,300-point peak in the short term, the view seems to have changed and agreed that the market will enter a correction phase. Technically, the support levels of the index will be lower, so if you sell early, you will have the opportunity to buy back at a lower price. The market is operating under short-term supply and demand pressure and partly due to the discouraging psychology when the news of storm and flood damage is rampant in the media.
Currently, stocks can be divided into three groups: first, the strong codes that have gone against the flow in the last 1-2 weeks, mostly showing signs of peaking or creating a peak region; second, the codes that increase and decrease alternately to create a base; third, the weak codes that penetrate the support region or are in a clear short-term downtrend. Therefore, the trading strategy depends on the stock. VNI adjustment does not necessarily lead to similar stock adjustments. Strong stocks still have their own resistance and will often fluctuate and consolidate. If we look back at the sharp decline at the beginning of August, the index plummeted very badly, but many stocks bottomed out early and the impact of the index trend was not much. This adjustment phase is also an opportunity to buy strong stocks.
Tiring information is overwhelming at the moment, and the market has prominent stories in some periods to “occupy the airwaves”. The evolution of storms and floods can affect production and business activities and cause damage. However, this will then be followed by stimulating support measures. Initially, the new information stream always attracts attention, but then fades over time. This is just the usual compatibility of a correction phase rather than a causal relationship.
Still holding the view that if the market does not increase, it will decrease, this correction phase is an opportunity to increase the stock ratio. The development of widening the range is very good, making it easier to stimulate money flow in rather than the annoying sideways movement. Strong stocks, although they may fall intraday or fall for 1-2 sessions, will balance faster and will not create a new bottom. Such stocks may cause short-term losses, but they are within expectations and can be easily made up for.
The derivatives market today reacted quite strongly, F1 maintained a very tight basis. The expected range of VN30 has a narrow range from 1306.xx to 1302.xx. Above this range is a widening range up to 1318.xx and below is a widening range down to 1292.xx. Both of these widening ranges are the main profit-making areas.
In the morning, VN30 increased early but only reached 1313 and then slowly slid down, making it difficult to trade without a standard setup. At the beginning of the afternoon session, the market weakened and broke the narrow range from 1306.xx – 1302.xx. This is a Short-selling region, and if you are more cautious, you can wait for a retest of 1302.xx. The subsequent decline had many small bounces, but VN30 eventually reached 1292.xx (lowest at 1291.16)
The selling pressure today was quite strong, but liquidity has not increased significantly. There is still selling power before there is clearer bottom-fishing demand. The strategy is to look for buying stocks, Long/Short flexibility with derivatives.
VN30 closed today at 1294.06. Tomorrow’s nearest resistance is 1300; 1306; 1317; 1322. Support 1291; 1280; 1275; 1268; 1263.
“Stock Blog” is personal and does not represent the opinion of VnEconomy. The views and assessments are those of the individual investors, and VnEconomy respects the views and writing style of the author. VnEconomy and the author are not responsible for any issues related to the investment views and opinions posted.
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