Vietnam Insight

Dow reaches new record highs. The S&P 500 gained 0.3% and the Dow Jones jumped 630 points to a fresh record high, while the Nasdaq lost 0.3% as investors rotated out of tech stocks into blue chip and cyclical names on expectations that a funding deal will pass the House this week. Progress in the Senate toward reopening the government lifted sentiment in economically sensitive sectors while health care leaders such as Merck (4.8%), Amgen (4.6%) and Johnson & Johnson (2.9%) led the Dow higher

Short-term downtrend. VNINDEX closed at 1,593.61 (+13.07 points, +0.83%) with liquidity lower than the 20-session average. The market had 186 gainers and 114 losers. The stocks that put the biggest downward pressure on the market were HVN, LPB, VJC; the stocks that supported the market were VHM, VIC, BID. Foreign investors reduced their net selling, net selling only about 75 billion VND. Foreign investors focused on net buying VIC, HPG and VNM.

Trading Strategy: For Traders : It is advisable to limit transactions and wait for signs of renewed buying demand to emerge and for the market to form a new price base.

For Medium- to Long-Term Investors: They may begin to partially disburse capital into stock groups with solid business results and a sufficiently attractive valuation discount such as those in the banking, finance, and construction materials sectors....