Don't give up on SP500 INDEX now, it gave a fairly good return

S&P 500 Index ranked better than it's peers today. It delivered -0.15% to close at 2695.95. It's recent 5 day performance has been -1.91%, -0.02%, +0.54%, -0.04% and +0.18%.

SP500 showed a bearish trend over the last 3 months. During this period SP500 delivered -6.33% and saw a maximum drawdown of -10.17%. There was a short signal during this period which returned +3.22%.

Trend

Monthly Performance

Heatmap

Volatility

Return distribution

During the last three months SP500 was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +2.3%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -3.29%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -6.9% of investor capital.

The last 12 months saw SP500's investors making profits in 8 months and incurring losses in 4 months. During the last year, SP500 and SP500 index had the same number of profitable months. SP500 and SP500 index were almost equally risky as their worst month performance was almost the same. SP500 and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both SP500 and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The real measure of your wealth is how much you'd be worth if you lost all your money

SP500 is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SP500's volatility from 25 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SP500 has significant positive skewness in it's return distribution. This indicates that investors can expect SP500 to recover from drawdowns quickly. Which makes SP500 a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in SP500 derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than SP500. Therefore, SP500 must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than SP500.