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Although the reversal for the downtrend is still not confirmed, new long positions for swing trading are not recommended due to the upcoming volatile period.

U.S July Retail sales and Vietnam T&G exports According to the latest data from the U.S. Census Bureau, retail sales in the U.S. increased by 0.7% MoM in July of 2023, marking a fourth consecutive rise, and beating market forecasts of a 0.4% increase. In more detail, US clothing store sales grew 1.34% YoY in July, slightly decelerated from 2.69% in June, but remain higher than the one-year slowest growth of 0.32% in April. The potential upturn in US clothing sales, given a relatively strong correlation with Vietnam T&G exports, subsequently benefiting this export sector in the latter half of 2023.

The stock market experiences a significant decrease in session with low liquidity, showing investors’ caution sentiment. Besides, the downside risk is still present as the VNIndex closes below the 50-period moving average. Therefore, investors should reduce the portion of stock in their portfolios and wait for the next signals.

Interest rates in the money market continued sticking to their lows this week due to the minimal improvement in the first lending market. However, liquidity providers tend to less eager in selling funds at this price range, showed by raising overnight rate and lower traded value. This situation was attributable to the recent government’s urge to reduce bank lending rates. In the notable development, USDVND rose for the fifth consecutive week but corrected significantly after failing to break out 24,000 level, signaling a temporary pause in its upturn.

The trading interest has started to spread to all cover warrants which have different underlying assets as well as trading activity also surged across groups. This is the sign for the active market. However, the correction from the major market has negatively impacted the Cover Warrant market.

Although the reversal for the downtrend is still not confirmed, new long positions for swing trading are not recommended due to the upcoming volatile period.

The stock market increases slightly during the session with liquidity records at a normal level. Despite the recoveries, the downside is present as the bearish market is confirmed before. Therefore, investors should reduce the portion of stock in their portfolios and wait for the next signals.

In general, outflow across Vietnam’s ETF intensified strongly while an absence of signs of demand resurgence. In this case, selling pressure may present the next time, however, an expectation that demand will come back on some major ETFs the next time.

Although the downtrend is not confirmed, the current bullish swing has been completely paused. Thus, long positions on leading stocks should be closed by half until there is the accurate signal for the upcoming market leg.

The stock market experiences the deepest decline of the year session with record-high liquidity. Furthermore, the VNIndex also closes below the important resistance level of the 1,200-pts threshold, indicating a bearish signal. Therefore, investors should reduce the portion of stock in their portfolios. The next time, if the market appears recovery sessions, investors should be careful with their investment decisions. Because the systematic risk is at a high level and more probability it is a Bull Trap. Overall, investors should reduce the portion of stock in their portfolios and carefully observe the next movements of the market.