📈 SigmaTrader Blog

Ever wondered why many old-school traders keep folded cash in their left pocket? It goes back to a story from one of the greatest traders in history— Jesse Livermore . One day, he gave each of his sons a $10 bill and said: Fold it carefully, put it in your left front pocket, and never spend it. Why the left pocket? Livermore had two reasons. First, it was a psychological anchor. That folded bill was a constant, physical reminder of the value of money—and how hard it is to keep it. It was about discipline, self-control, and protecting your capital. Second, Livermore pointed out something clever: most pickpockets are right-handed and tend to target right-side or back pockets. So, the left front pocket was safer. In other words, Livermore taught his sons to protect their money—not just from the market, but from the world. And maybe that’s why, even today, some of us still carry a folded bill in our left pocket. Just in case.

Bitcoin at a Critical Juncture: Will It Follow Gold to New Highs? Bitcoin ($BTC) is currently approaching a major inflection point on the weekly chart. Technical indicators such as Money Flow and RSI are signaling strength, and it appears that the long-standing downtrend may be coming to an end. The big question is: Will BTC break out and follow in Gold’s footsteps as a “digital gold,” pushing toward a new all-time high (ATH)? No one can predict the future with certainty, but the odds favor a significant move if this breakout occurs. Despite recent weakness in the Nasdaq, Bitcoin has shown impressive resilience, which could be a bullish sign. However, if BTC fails to break out in the coming week, a drop to the $55K area is possible. This level aligns with strong historical support and the weekly 200 SMA — a level that many technical traders will be watching closely. So, What Can We Do? This is not financial advice , but from a long-term investor's perspective, we believe it m...

  Was There a Hint About a Tariff Pause for China Before the Sudden U-Turn? The first week of April unfolded like a geopolitical thriller, with markets reacting wildly to conflicting messages from Washington and Beijing. But amid the chaos, was there a subtle signal—a hint—about a potential tariff pause before the dramatic escalation? Let’s recap the whirlwind: April 2 : The U.S. imposes a 34% tariff on China, sparking global headlines. April 4 : China retaliates with its own 34% tariff on U.S. goods. April 7 (Early Hours) : News breaks of a 90-day pause on tariffs. Markets soar on the hope of de-escalation. Minutes Later : The White House denies the report, calling it fake news . Later on April 7 : President Trump gives China one day to roll back its retaliatory tariffs. April 8 : With no response from China, the White House slaps an additional 50% tariff , raising the total to 84% . April 9 : China retaliates with an additional 50% , matching the 84% t...

🧩 Why Do the Tariffs End with “4”? As all we know the United States has implemented 34 % tariff on Chinese imports and in response, China has imposed its own tariffs on U.S. goods, including a 34 % tariff on all U.S. imports effective April 10, 2025. ​ And today White House says 104% additional tariffs on China took effect at noon. Collection starts tomorrow. And more interestingly why these tariff numbers end with magical "4"? 🎯 1. Numerical Symbolism in Chinese Culture In Chinese culture, the number 4 (四, "sì") is considered unlucky because it sounds very similar to the word for "death" (死, "sǐ") . So when tariffs end in 4% , it could be seen as a subtle jab or psychological tactic—especially if done by U.S. policymakers to signal economic "punishment" or a hardline stance. 🧠 2. Calculated Messaging Governments often use non-verbal cues in trade wars: Numbers Timing (e.g., applying tariffs on national holidays) Produ...

 📉 Is It Time to Buy US Stocks? Nobody can perfectly time the market—let’s get that out of the way first. But when your favorite asset is hovering near a major technical support , you need to ask yourself a key question: ❓ If it drops, will you regret buying? Or if it flies, will you regret missing out? If you lean toward the second one, it might be time to pull the trigger . But let’s be clear: Never go all in. Never fully exit. Unless the fundamentals change. 🔍 Why Now? Both $QQQ and $SPY are sitting close to their 200-week SMA —a historically strong support zone. (A 10% drop in SPY would bring it down to its 200-week simple moving average (SMA)) Institutions often accumulate at these levels while retail panic sells. You might be thinking, "This time is different." But I’ve heard that exact phrase during: Market all-time highs Bearish breakdowns Sudden sentiment shifts The truth is: sentiment flips fast. Most investors aren't rational. They...

Ferrari ( $RACE ), the legendary Italian automaker, has announced price increases on select models in response to the possibility of a 25% tariff on imported vehicles under President Donald Trump’s proposed trade policies. While some automakers might struggle to pass increased costs to customers, Ferrari’s ability to do so with minimal resistance is a testament to its formidable competitive moat. The Price Hike and Its Impact Starting April 1, Ferrari ( $RACE ) will raise prices by up to 10% on some models, potentially adding around $50,000 to the cost of a typical Ferrari. Unlike mass-market carmakers that rely on competitive pricing to maintain demand, Ferrari is in a unique position where its exclusivity allows it to dictate prices without significant pushback from its affluent customer base. The company’s CEO, Benedetto Vigna, reaffirmed Ferrari's commitment to keeping all production in Maranello, Italy, even as it prepares to launch its first all-electric vehicle next year. A ...

The past week was a whirlwind for the markets. Major indices took a hit, with the Nasdaq 100 ($QQQ) plunging 10% and the S&P 500 ($SPY) dropping more than 7%. But beneath the surface of this broad sell-off, a different story was unfolding. While tech giants like NVIDIA ($NVDA), Tesla ($ TSLA ), Palantir ($ PLTR ), and Netflix ($ NFLX ) continued to slide, certain sectors and stocks stood their ground and even flourished. Who’s Thriving Amid the Chaos? Surprisingly, some consumer cyclical and communication services stocks saw gains: McDonald’s ($ MCD ) and Yum! Brands ($ YUM ) hit all-time highs. Verizon ($VZ) reached a 52-week peak. Beaten-down names like $TEX, $CE, $LKQ, $ GES , $ARCO, $CELH, $ EL , $NEE, $ FSLR , $ ADBE , and VOD saw strong inflows, closing in the green. This raises an important question: Are we witnessing a recession panic , or is this a strategic sector rotation? Recession Panic or Sector Rotation? If this were a true recession scare, we’d expect investors to f...