📈 SigmaTrader Blog

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...