BRITISH AMERICAN TOBACCO P.L.C. (Foreign) was among the worst performers today. It lost -2.53% to close at 33.08. It's recent 5 day performance has been -1.14%, +2.08%, -1.95%, +1.78% and -2.57%.
BTI is currently in a down trend. The current bearish signal has generated a profit of +31.27% for investors in the last three months.
During the last three months BTI was mostly loss making and delivered on average -0.57% per day. It's best return during this period (of +4.69%) was on Tuesday, 23 Oct, 2018. While it's worst loss in the same period (of -8.79%) was on Monday, 12 Nov, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 27 Sep, 2018. The bullish trend returned +1.48% to investors. This was followed by a bearish trend that started on 8 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -26.1% of investor capital.
BTI had 2 profitable and 10 loss making months over the last year. During the last year, BTI underperformed SP500 index on monthly return basis. BTI was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -19.65% compared to -7.28% returned by SP500 index in Oct 2018. BTI had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -27.45%. It is interesting to note that both BTI and SP500 index significantly outperform during months when quarterly/annual results are announced.
I have probably purchased fifty 'hot tips' in my career, maybe even more. When I put them all together, I know I am a net loser.
-- Charles Schwab
BTI is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in BTI's volatility from 17 Sep, 2018 to 15 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 BTI has significant positive skewness in it's return distribution. This indicates that investors can expect BTI to recover from drawdowns quickly. Which makes BTI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
On a general note (since you are interested in BTI), three instruments that deserve special mention are SBOT, AYTU and APRN. They have all outperformed the market and must be closely watched for investment opportunities.
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