BAXTER INTERNATIONAL INC

64.19 -1.48 (-2.3%) Sell

BAX investors dump it

13 min read

BAXTER INTERNATIONAL INC has destroyed investor wealth today. It fell by -2.3% to close at 64.19. It's recent 5 day performance has been -1.87%, -0.07%, +1.22%, +1.08% and +0.71%.

[Themes containing BAX]

BAX is currently in a bearish trend. The current bearish signal has generated a profit of +8.91% for investors in the last three months.

Trend

BAX has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 12 Jan, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 10 days, BAX outperformed the SP500 index on 57% days.

During the last three months BAX was mostly loss making and delivered on average -0.28% per day. It's best return during this period (of +3.58%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -8.96%) was on Wednesday, 31 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 2 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -10.23% of investor capital.

During the last year BAX had 7 profitable months and 5 loss making months. BAX returned profits in fewer months than SP500 index. BAX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -19.65% compared to -7.28% returned by SP500 index in Oct 2018. BAX 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 BAX and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Of course, it is a little bit disingenuous to hint that hard work is the only thing you need to achieve success.

BAX 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 BAX's volatility from 19 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

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

Investors trading in BAX derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in BAX), three large cap instruments that deserve special mention are AMZN, V and MSFT. They have all outperformed the market and must be closely watched for investment opportunities.

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