72.61 +1.93 (+2.66%) Sell

AME investors looking to add more to current positions

13 min read

AMETEK INC was among the best performers on Wednesday. It returned +2.66% to close at 72.61. On a day when the overall market breadth was 35%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.

[Themes containing AME]

AME is currently in a down trend. The current bearish signal has generated a profit of +2.67% for investors in the last three months.


AME has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 8 days, AME outperformed the SP500 index on 51% days.

During the last three months AME was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +6.78%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.27%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 15 Oct, 2018. The trend delivered -9.87% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +13.82% to investors.

AME had 6 profitable and 6 loss making months over the last year. During the last year, AME underperformed SP500 index on monthly return basis. AME was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.84% compared to -7.28% returned by SP500 index in Oct 2018. AME had no profitable months, compared to 6 consecutive months of profit by SP500 index during the period Apr 2018 to Sep 2018.

Wealth after all is a relative thing since he that has little and wants less is richer than he that has much and wants more.
-- Charles Caleb Colton

AME 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 AME's volatility from 3 Oct, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

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

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

On a general note (since you are interested in AME), three instruments that are extremely volatile are VIPS, IX and IMTE. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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