Finance

Potential Buying Opportunities: Economic Updates on Mexico and Bitcoin

Published November 27, 2024

To gain an edge, this is what you need to know today.

Buying Opportunity Ahead

Please click here for an enlarged chart of iShares MSCI Mexico ETF EWW.

Here are some key points to consider:

President-elect Trump plans to impose significant tariffs on Mexico and Canada using an executive order on the first day of his presidency.
In response, Mexico's president is stating that migrant caravans are no longer heading towards the U.S. and is offering assistance to combat drug trafficking.
If negotiations with Mexico deteriorate, it could severely impact Mexican stocks. This could present a chance for long-term investors to purchase Mexican stocks at lower prices, since the U.S. market alone cannot sustain full-fledged economic growth nor absorb all manufacturing previously handled by China.
The current chart indicates that the Mexico ETF EWW is oversold, but further declines are possible.
The ETF could drop to a strong support zone as illustrated in the chart.
According to The Arora Report's analysis, a potential buying opportunity will appear if the Mexico ETF EWW reaches its lower support zone, although this is contingent on various data factors. Investors should monitor these developments closely.
Preparation is crucial; if an opportunity to invest in Mexico arises, signals will be disseminated via The Arora Report’s Real-Time Feed of ZYX Emerging. The report utilizes complex algorithms which combine macroeconomic, fundamental, technical, and quantitative analyses to spot shifts early, facilitating the capture of potential gains.
Trump is also considering imposing tariffs on Canada, which could similarly create a buying opportunity for the iShares MSCI Canada ETF EWC. Investors should again prepare ahead to seize such opportunities when they become evident.
After the announcement of Trump's tariff strategy, stock futures initially plummeted, but then experienced a resurgence as investors began buying the dip.
Developments in the Bitcoin sector are also noteworthy. Please scroll down for updates on Bitcoin.

Magnificent Seven Money Flows

During early trading, money flows are showing positive trends in major companies such as Apple Inc AAPL, Amazon.com, Inc. AMZN, Meta Platforms Inc META, NVIDIA Corp NVDA, and Tesla Inc TSLA.

In contrast, money flows are neutral for Alphabet Inc Class C GOOG and Microsoft Corp MSFT.

Additionally, money flows are positive for the SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust Series 1 QQQ.

Momo Crowd And Smart Money In Stocks

Investors can gain an advantage by tracking money flows within SPY and QQQ. Knowledge of when smart money enters the markets can be significantly beneficial, especially for stocks, gold, and oil. Popular ETFs for these commodities include SPDR Gold Trust GLD for gold and United States Oil ETF USO for oil.

Bitcoin

Interestingly, while many are optimistic about Bitcoin (BTC/USD) and other cryptocurrencies, there exists a record volume of money directed towards shorting Bitcoin. For instance, the ProShares UltraShort Bitcoin ETF (ARCA: SBIT) reached a record $18.8 million in short investments yesterday. This is notable despite the significant long positions currently held.

Bitcoin investors, often referred to as whales, have taken profits between the $93,000 and $98,000 range, capitalizing on the enthusiasm of retail investors. While retail investors traded their cash for Bitcoin, these whales converted their Bitcoin back into cash.

Protection Band And What To Do Now

Investors are encouraged to prioritize forward-looking strategies instead of focusing solely on past performance. The proprietary protection band devised by The Arora Report is highly regarded and integrates comprehensive data, indicators, news, and analyses into a user-friendly format for investors.

Continued holding of solid, long-term positions is recommended. Based on individual risk tolerance, consider a protective band that includes cash or short-term treasury bills, as well as adapted short to medium-term hedges.

It’s essential to have enough cash on hand to seize new opportunities as they arise. Adjust hedge levels thoughtfully and consider wider stop-loss orders on high beta stocks, which are more volatile than the market average.

Traditional 60/40 Portfolio

Risk-reward considerations adjusted for inflation do not presently favor long-duration strategic bond allocations.

For investors sticking to the classic 60% stock and 40% bond allocation, focusing on high-quality bonds with durations of five years or less might be wise. Those open to more sophisticated investing strategies might think about utilizing bond ETFs for tactical over strategic purposes at this time.

The Arora Report has gained acclaim for its accurate predictions, having successfully identified significant market movements over the years. To stay informed, consider signing up for a free newsletter that provides wealth generation insights.

Buying, Opportunity, Investing