Vietnam Insight

Many markets are adjusting and waiting for the US CPI data this week. In regular trading on Tuesday, the Dow dropped 0.35%, the S&P 500 fell 0.3%, and the Nasdaq Composite declined 0.25%. This marked the second consecutive down day for the S&P 500 and Nasdaq, and the fourth negative session in a row for the Dow.  Markets are currently pricing in an 86% chance of a 25-basis-point rate cut by the Fed this month, up from 73% a week ago. The dollar index gained traction and rose to above 106.5 on Tuesday, the highest in two weeks, amid dovish expectations for major central banks outside the US ahead of the domestic CPI print this week. 

Take a break. VNINDEX closed at 1,272 points (-1.77 points, -0.14%) with trading volume sideways compared to the 20-day average. while VCB, VIC, and VHM contributed to the market's decline. Foreign investors net sell VND 135 bn. Under normal circumstances, the VN-Index needs to form an absorption zone with a narrow range and liquidity before entering the strong resistance zone of 1290-1300.

Strategy: Many stocks have reached the target profit-taking threshold, short-term investors can sell a portion, and take profit of the remaining portion when VNINDEX reaches the 1,300 zone.