ACN is a falling knife, continues to bleed every investor trying to catch it
07 Dec, 201813 min read
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ACCENTURE PLC was among the worst performers on Friday. It fell by -1.13% to close at 157.45. It is currently trading -9% below it's 52 week high of 174.19.
ACN is currently in a bearish trend. The current bearish signal has generated a profit of +2.65% for investors in the last three months.
ACN has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 17 Apr, 2017 to 4 Dec, 2018. Over the last 2 years 11 months and 3 days, ACN outperformed the SP500 index on 56% days.
During the last three months ACN was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +2.79%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -4.18%) 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 -10.84% of investor capital.
During the last year ACN had 8 profitable months and 4 loss making months. Profitable number of months of ACN and SP500 index were the same. ACN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.16% compared to -7.28% returned by SP500 index in Oct 2018. ACN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
"Derivatives are financial weapons of mass destruction.
ACN 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 ACN's volatility from 24 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that ACN has significant positive skewness in it's return distribution. This indicates that investors can expect ACN to recover from drawdowns quickly. Which makes ACN a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in ACN 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 ACN. Therefore, SP500 must receive a lower allocation than ACN in your portfolio. ACN usually has shorter drawdown period than the SP500 index.
Based on your interest in ACN you may find it interesting to know that EPIX and OPNT are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).
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