79.76 +0.4 (+0.5%) Buy

Don't sell AEP now, it delivered great returns

13 min read

AMERICAN ELECTRIC POWER CO INC delivered stellar performance on Tuesday. It gained +0.5% to close at 79.76 which is it's 52 week high.

[Themes containing AEP]

AEP showed a up trend over the last 3 months. During this period AEP gained +10.0% and saw a maximum drawdown of -5.48%. There were 2 long signals during this period that returned a cumulative of +7.08% to investors.


AEP has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, AEP outperformed the SP500 index on 52% days.

AEP was profitable on 65% days in the last three months. During this time, it delivered on average +0.16% per day. It delivered it's best daily return of +2.89%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -3.43% losses to investors. This was followed by a bullish trend that started on 29 Nov, 2018 and ended on 11 Dec, 2018. This bullish trend delivered +4.55% to investors.

On monthly basis, AEP delivered profits in more months over the last year, than losses. AEP delivered profits less regularly than SP500 index. AEP significantly outperformed SP500 index in Nov 2018, when it returned +5.97% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AEP 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 AEP and SP500 index significantly outperform during months when quarterly/annual results are announced.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

AEP is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AEP's volatility from 17 Sep, 2018 to 26 Oct, 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 AEP has significant positive skewness in it's return distribution. This indicates that investors can expect AEP to recover from drawdowns quickly. Which makes AEP a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in AEP you may find it interesting to know that LULU and TWTR are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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