📈 SigmaTrader Blog

Investors are constantly searching for opportunities that offer a balance of risk and reward. One stock that has caught the eye of many is Arcos Dorados Holdings, Inc. ( $ARCO ), the company responsible for operating and franchising McDonald’s restaurants across Latin America and the Caribbean. With the stock currently sitting on a crucial weekly technical support level, now could be a significant moment to evaluate its potential. Why Consider ARCO? 1. Attractive Valuation Arcos Dorados Holdings is trading at a price-to-earnings (P/E) ratio of 11, with a forward-looking P/E of 9.97. This relatively low valuation suggests that the stock may be undervalued, especially considering the company’s strong market position and brand power. A P/E ratio below 15 is often a sign of a potentially undervalued stock, making ARCO appealing for value investors. 2. Dividend Yield In addition to its attractive valuation, ARCO offers a dividend yield of 2.33%. While this isn’t the highest yield availabl...

Chinese ADRs (American Depositary Receipts) are seeing a strong upward movement in premarket trading today, capturing the attention of investors. This positive momentum is largely driven by significant developments surrounding two major Chinese companies: Alibaba and Bilibili . Alibaba’s Strategic Shift: Opening Doors to Mainland Investors Alibaba is making headlines with its latest strategic move to change its listing status on the Hong Kong Stock Exchange. According to a report from the South China Morning Post, this adjustment will make Alibaba's shares eligible for trading by the 220 million investors in mainland China through the Stock Connect program. The move is still pending approval, but if it goes through, it is expected to significantly boost Alibaba’s trading volume and liquidity. This would be a major step in fulfilling a long-standing goal of allowing domestic Chinese investors to share in the capital gains of one of the country’s most prominent tech giants. The imp...

The Chinese stock market has been navigating rough waters lately, with many investors wary of diving in. However, a recent wave of insider buying at Yum China Holdings Inc. ( $YUMC ) has caught the attention of market watchers. Key insiders, including Director Aiken Robert Blaine, General Manager of KFC Wang Warton, and Chief Executive Officer Wat Joey, have all begun to accumulate shares this month.(Check it here ) This activity is particularly noteworthy as insider buying is often interpreted as a strong signal that those closest to the company believe in its future potential. As the saying goes, insiders might sell stock for a variety of reasons, but they buy only for one: they believe the stock will appreciate in value. Is Yum China Holdings a Good Buy? For investors, the big question is whether $YUMC  is a stock worth considering. On the surface, several factors suggest it might be a solid addition to a portfolio: Dividend Yield : Yum China offers a dividend yield of 1.68%, pr...

Investing for retirement is one of the most important financial decisions you'll make in your life. As you look to the future, it’s essential to create a portfolio that not only grows over time but also weathers various economic conditions. In this post, I’ll share the strategy behind my all-weather investment pie, a carefully crafted portfolio designed for long-term growth, steady income, and peace of mind. The Foundation of the All-Weather Pie At the heart of this investment pie is diversification. We’ve included a balanced mix of stocks from major global sectors and countries, ensuring broad exposure to both developed and emerging markets. This means you’re not overly reliant on any single market or sector, reducing the overall risk in your portfolio. Additionally, a portion of the pie is allocated to gold, a time-tested hedge against inflation and market volatility. Gold’s stability often provides a safety net during economic downturns, making it a valuable component of a dive...

The LKQ Corp. is a leading distributor of vehicle products and parts used to repair, maintain, and accessorize automobiles. The company operates in the Consumer Cyclical sector, which often faces challenges during economic downturns.  Given the widespread anticipation of a recession in the U.S., it's possible this has contributed to the significant decline in LKQ's stock price. However, there has been notable insider buying since July, with key executives like the CEO and CFO purchasing over half a million dollars' worth of stock. This insider activity is often viewed as a positive signal. As renowned investor Peter Lynch famously said, "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise." So, is LKQ a good stock to buy? While no one can predict the future with certainty, LKQ is a solid company, offering an attractive dividend yield of nearly 3% and potential upside of around 40%. Ultimately...

 When an asset gets squeezed into a wedge pattern, it typically leads to a significant move once it breaks out. So, which way will US Oil break? While no one can say for sure, technical indicators suggest an upward breakout, whereas fundamental factors, such as a slowdown in U.S. consumer demand, might point to a downward move. However, the potential for brewing geopolitical tensions could drive it higher. The direction of this breakout will have a significant impact on the stock market as well. Time will tell which direction it takes.

 Over the last few days, as the market attempts to bounce and push higher, the trading volume has been declining, indicating that the price action lacks strong support. Next Friday marks a major options expiration day, which could lead to increased market volatility. Be cautious with your long positions, as heightened volatility may return in the middle or later part of next week.

 Is HSBC a Good Stock to Buy Now? HSBC is one of the biggest, strongest, and most popular banks in the world. The bank is UK-based, and while the UK has been in a recession, it is now showing signs of improvement. The stock fell quite heavily after the earnings report. Additionally, the decline in the Japanese market impacted HSBC as a sympathy play. Currently, the company is trading with a P/E ratio of 6.8, which is reasonable for a bank. The dividend yield is 7.61%, which is attractive, especially during challenging economic times. The price target for the stock is 56, which is approximately 40% above the current level. You can check more details here This is not financial advice, but we are buyers at this level. If the stock drops in the near future, we will add more to our position. Result: +10% in money as of 27.08.2024

💛 Is the sky limit for Gold ?  As the market falls, gold is climbing higher. It is nearing a major resistance level that it has tried to break three times before. This will be the fourth attempt, and usually, this increases the probability of a breakout. If it breaks, the sky is the limit for yellow metal. 

Everyone is interested, is Merck ( $MRK ) at a Good Buy Level? 💊  If someone is looking for a healthcare stock just before a potential recession, maybe Merck is a good option.  The stock dropped sharply after earnings and closed the gap. It is also near another support level, as indicated by the dotted line in the screenshot. The company pays a dividend of over 2.7% and is currently trading with a P/E ratio of 20, which is a reasonable valuation for a stock with an operating margin of 27% and an almost 20% return on investment. Check it out here Anyway, this is not financial advice. We're buyer at this level because we were waiting for it to drop long enough, and if it drops further, our next buy level is between 100 and 90.

 Is Marriott International ( $MAR ) at a Buy Level? After the earnings report, the stock fell sharply but it is currently bouncing back from a gap close and support level. There is also a weekly support level around 200, where the stock might fall during the coming week. Is it a buy level? Based on technical analysis, it is a good level. Additionally, the RSI indicates the stock is in oversold territory. Fundamentally, we can all agree that the company is quite strong and well-known. Its P/E ratio is 21, which is also reasonable. Dividend yield 1.02% as of today. Can the company fall further? Of course, nobody knows, and there is a fear of a recession in the US, which could trigger a further downside move. This is not financial advice; however, we are buying at this level and will add more if it drops to 200, and eventually around 178 if it reaches that level anytime soon. Result: +6.8% in money as of 27.10.2024

As you can see in the screenshots below, the Nasdaq 100 ETF ($QQQ) sold off by more than 10%, and the S&P 500 ETF ($SPY) sold off by more than 5%. Is this the start of a bear market or just a correction? First, let's discuss how this all began on July 11th. What triggered this sell-off? On July 11th, economic data was released, including a negative CPI report. This may have led smart money to decide it was the top, anticipating rate cuts that the Fed was late to implement. This caused a significant sell-off on July 11th, followed by a brief pullback and another sell-off, as observed in the screenshots. Then, on July 24th, another significant economic event occurred: the PMI came in under 50, which is a major warning sign. We all know that when the Fed keeps rates high for longer than needed, a recession often follows. Even if they start to lower rates, it may not help immediately. You can check all these charts  here The next big hit was due to the Initial Jobless Claims, which...