ABBOTT LABORATORIES

70.08 +0.33 (+0.47%) Buy

ABT continues it's uptrend, although on a weaker note

13 min read

ABBOTT LABORATORIES is looking better than most other alternatives today. It grew by +0.47% to close at 70.08. During the last week it lost -3.38% and saw a maximum drawdown of -3.83% before bouncing back.

[Themes containing ABT]

Buy-and-Hold investors in ABT experienced a maximum drawdown of -9.69% over the last three months. It grew by +2.31% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

ABT has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ABT outperformed the SP500 index on 54% days.

During the last three months ABT was mostly profitable and delivered on average +0.05% per day. It's best return during this period (of +4.48%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -3.73%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 1 Oct, 2018. The bullish trend returned +7.97% to investors. This was followed by a bearish trend that started on 2 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -8.38% of investor capital.

ABT had 6 profitable and 6 loss making months over the last year. During the last year, ABT underperformed SP500 index on monthly return basis. ABT significantly outperformed SP500 index in Sep 2018, when it returned +9.75% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ABT had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ABT and SP500 index significantly outperform during months when quarterly/annual results are announced.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher

ABT is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ABT's volatility from 21 Sep, 2018 to 10 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

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

Investors trading in ABT 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 ABT. Therefore, SP500 must receive a lower allocation than ABT in your portfolio. ABT usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in ABT), TNDM has performed really well this year and deserves to be closely tracked for investment opportunities.

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