41.2 -0.89 (-2.16%) Sell

AEIS is a falling knife, continues to bleed every investor trying to catch it

13 min read

ADVANCED ENERGY INDUSTRIES INC was among the worst performers today. It fell by -2.16% to close at 41.2. It's recent 5 day performance has been +2.28%, -1.29%, +0.26%, -4.65% and -2.46%.

[Themes containing AEIS]

AEIS is currently in a bearish trend. The current bearish signal has generated a profit of +23.26% for investors in the last three months.


AEIS has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Jan, 2016 to 27 Oct, 2017. Over the last 2 years 11 months and 9 days, AEIS outperformed the SP500 index on 56% days.

During the last three months AEIS was mostly loss making and delivered on average -0.38% per day. It's best return during this period (of +9.5%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -6.03%) was on Tuesday, 30 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 3 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -13.17% of investor capital.

During the last year AEIS had 4 profitable months and 8 loss making months. AEIS returned profits in fewer months than SP500 index. AEIS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -17.6% compared to -7.28% returned by SP500 index in Oct 2018. AEIS had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -12.05%. It is interesting to note that both AEIS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Wealth is not his that has it, but his that enjoys it.
-- Benjamin Franklin

AEIS is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in AEIS's volatility from 14 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AEIS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in AEIS), three small cap instruments that deserve special mention are BURL, AAXN and HQY. They have all outperformed the market and must be closely watched for investment opportunities.

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