The enthusiastic upward momentum in the morning triggered short-term profit-taking trades in the afternoon, creating noticeable pressure on the market. The VN Index once again climbed close to the 1300-point mark, and a defensive stance resurfaced.
The substantial amount of bottom-fishing trades that profited in the past few days, along with the trapped positions in the 1300-point region, 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 trading volume, reflects the opposing force.
By the afternoon, many stocks had been pushed below the reference price; such stocks are considered weak, at least for this session. For the remaining stocks, it is essential to observe how much the green price region is suppressed and the ability of the buying power to withstand the pressure. With the “original 1300-point” stance, the three-session rebound is still regarded as a “test” of the peak again, and it is unclear if there will be a breakthrough. Therefore, short-term profit-taking or reducing positions is a normal strategy.
Today’s highlight was the highly concentrated cash flow into stocks with above-average liquidity, along with a significant increase in price range and a slight retreat from the peak, indicating robust and capable stocks that can absorb short-term positions well. Stock strength is diversifying due to the uneven cash flow spread. The blue-chip group showed better money-attracting signals, maintaining more stable prices than midcap and penny stocks. This is reasonable, as large cash flows typically select blue-chip stocks or stocks with sufficient liquidity to operate effectively.
The market is still in the stage of testing supply on the upside and within the old peak region. It is important to note that the VN Index is not homogeneous with stocks, and its peak does not signify the peak of stocks. Therefore, many stocks that were heavily sold today have not actually peaked; they are merely affected by the psychological chain reaction when the VN Index approaches its old peak. Hence, in trading, it is crucial to observe the specific price foundation of the stocks.
Maintaining a positive market outlook, stocks that have risen rapidly in the past few days may pause slightly, while those still building a foundation may be bought at lower prices due to the overall psychological pressure. In sessions like today’s, robust stocks are evident, and a well-constructed portfolio remains unscathed.
Today’s derivatives market was challenging for profit-seeking, as the VN30 index rose significantly, but most of the increase occurred at the opening jump, while intraday fluctuations were narrow, and the basis differed considerably. The VN30 index levels surpassing 1367.xx were not favorable for Long positions, and the breakdown points of 1367.xx did not yield the corresponding basis return.
The profit-taking episode this afternoon resulted in varying price effects; purely observing the VN Index revealed signs of weakness, but many stocks remained robust. Cash flow into blue-chip stocks was favorable, and large-cap stocks provided adequate support. The VN30 outperformed the VN Index significantly. The strategy remains to focus on stock purchases, with flexible Long/Short approaches in derivatives.
The VN30 closed today at 1360.58. The nearest resistance levels for tomorrow are 1368, 1376, 1380, and 1388. The support levels are 1357, 1348, 1341, and 1333.
“Stock Market Blog” reflects the personal perspective of the author and does not represent the views of VnEconomy. The opinions and assessments are solely those of the individual investor, and VnEconomy respects the author’s perspective and writing style. VnEconomy and the author are not responsible for any issues arising from the published investment views and opinions.
The Ever-Rising Bridge Tolls: A Costly Commute
Although the VN-Index only slightly increased by 3.24 points (+0.25%) during the morning session, the index traded above the reference level for most of the time, with a positive market breadth. This is a result of buying power pushing the market to higher price levels. Blue-chips are leading the gains and dominating market liquidity, accounting for more than half of the total trading volume.
The Stock Market Buzz: Euphoria Takes Hold
Risk appetite from the buyers has been increasing significantly, immediately shifting the way orders are placed and the selected price zones. Today’s market still witnessed volatile swings, but they remained in the green zone and grew more enthusiastic as the day progressed.
Stock Market Blog: Short-Term Psychology Returns, Mid and Small-Cap Stocks Underperform
The enthusiastic upward momentum in the morning triggered short-term profit-taking trades in the afternoon, creating noticeable pressure. The VNI once again climbed close to the 1300 mark, and a defensive stance emerged.
The Savvy Investor’s Take: A Smart Sell-Off or a Missed Opportunity?
Individual investors sold a net amount of 71.3 billion VND, including 148.1 billion VND in matched orders. The top stocks sold were HPG, TCB, DBC, VHM, HAH, FPT, FRT, MWG, and EIB.
The Flow of Funds: Consecutive Failures at the 1300-Point Peak, Is There Still a Chance for a Breakthrough?
Over the past five trading sessions, the VN-Index has witnessed two attempts to breach the 1300-point mark, yet it failed to sustain this level. The notable surge in trading volume during these failed attempts leaves a stark impression of distribution activities.
