Vietnam Insight

Caution after the FOMC meeting and Trump's tariff threats. On Wednesday, the S&P 500 climbed 0.24% to reach a new record high, while the Dow and Nasdaq Composite posted modest gains of 0.16% and 0.07%, respectively. Investors digested the latest Federal Reserve meeting minutes and President Donald Trump’s renewed tariff threats. In January, Fed officials expressed a preference for further progress on inflation before considering additional interest rate cuts, while also voicing concerns over the potential impact of Trump's tariffs. Trump recently unveiled plans for a 25% tariff on imports of autos, semiconductors, and pharmaceuticals, set to take effect as early as April 2, raising fresh uncertainty in global trade. 

Cash flow spreads across all sectors. VNINDEX closed at 1,288.56 (+10.42 points, +0.82%) with higher liquidity than the 20-session average. The VN-Index had a successful retest at the 1280-point mark with strong cash flow. Although the market has surpassed the 1280 resistance level, the 1300 zone, which is approaching, is a strong resistance zone that has been tested unsuccessfully many times. In a positive scenario, buying power needs to continue to increase to support the VN-Index in this retest

Trading Strategy: The market is currently trending towards a sideways trading pattern. For short-term trading, investors can consider deploying capital around the 1,240-point range and gradually take profits as it approaches 1,280-1,300 points. With a buy-and-hold strategy, investors can deploy additional capital when the VN-Index breaks out of and successfully defends the 1,300-point zone.