Vietnam Insight

The market is optimistic about Trump’s trade measures. On Tuesday, in regular trading, the Dow surged 1.24%, the S&P 500 gained 0.88%, and the Nasdaq Composite rose 0.64%. US stock futures rose on Wednesday following a strong market rally in the previous session, buoyed by relief over President Trump’s unexpectedly moderate trade measures on his first day in office. Trump announced he was considering a 25% tariff on Mexico and Canada and a 10% tariff on China, with the potential to take effect by Feb 1. Despite these proposals, the President held off on turning his threats into formal policy, even as he signed a series of executive orders

Short term sideways trend. VNINDEX closed at 1,246.09 (-3.46 points, -0.28%) with liquidity below the 20-session average. The market had 147 green codes and 240 red codes. Industry groups fluctuated around the reference level. VN-Index had a tug-of-war session when moving towards testing the resistance zone of 1250. Liquidity remained at a low level, showing that selling pressure was not large and buying pressure was still accepting to support prices. Therefore, VN-Index still does not have a strong cash flow to improve the short-term trend.

Trading Strategy: The market is following the main sideway trading trend. For short-term trading, investors can consider disbursing around this area and gradually taking profits when approaching 1,300 points. With a holding strategy, investors will only disburse strongly when the VN-Index breaks out and successfully defends the 1,300 point level.