52.12 -1.48 (-2.83%) Sell

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

13 min read

BMY was among the worst performers today. On a longer term basis, investors in BRISTOL MYERS SQUIBB CO made -0.01% per day. Friday's performance of -2.83% was a underperformance compared to it's daily average.

[Themes containing BMY]

Buy-and-Hold investors in BMY experienced a maximum drawdown of -22.77% over the last three months. It delivered -14.98% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +10.91%.


BMY has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 13 Jul, 2016 to 22 Oct, 2018. Over the last 2 years 11 months and 10 days, BMY underperformed the SP500 index on 46% days. Which indicates that on days BMY underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months BMY was mostly loss making and delivered on average -0.24% per day. It's best return during this period (of +3.19%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -6.3%) was on Monday, 22 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -18.3% of investor capital.

The last 12 months saw BMY's investors making profits in 8 months and incurring losses in 4 months. During the last year, BMY and SP500 index had the same number of profitable months. BMY was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -18.62% compared to -7.28% returned by SP500 index in Oct 2018. BMY had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

"The best thing money can buy is financial freedom.

BMY 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 BMY's volatility from 18 Sep, 2018 to 29 Oct, 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 BMY has significant positive skewness in it's return distribution. This indicates that investors can expect BMY to recover from drawdowns quickly. Which makes BMY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in BMY 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 BMY. Therefore, SP500 must receive a lower allocation than BMY in your portfolio. BMY usually has shorter drawdown period than the SP500 index.

Based on your interest in BMY you may find it interesting to know that GNK is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to GNK or sufficiently diversifying your portfolio.

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