CATO CORP has destroyed investor wealth today. It lost -3.91% to close at 13.75. During the last week it lost -2.96% and saw a maximum drawdown of -4.38% before bouncing back.
CATO is currently in a down trend. The current bearish signal has generated a profit of +34.55% for investors in the last three months.
During the last three months CATO was mostly loss making and delivered on average -0.63% per day. It's best return during this period (of +4.93%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -8.48%) was on Thursday, 8 Nov, 2018. There was initially a bullish trend during this period which started on 4 Oct, 2018 and went on till 10 Oct, 2018. The bullish trend returned +7.42% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -11.87% of investor capital.
CATO had 4 profitable and 8 loss making months over the last year. During the last year, CATO underperformed SP500 index on monthly return basis. CATO significantly outperformed SP500 index in May 2018, when it returned +40.84% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CATO had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -47.84%. It is interesting to note that both CATO and SP500 index significantly outperform during months when quarterly/annual results are announced.
Happiness lies in the joy of achievement and the thrill of creative effort.
-- Franklin D. Roosevelt
CATO 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 CATO's volatility from 17 Sep, 2018 to 26 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 CATO has significant positive skewness in it's return distribution. This indicates that investors can expect CATO to recover from drawdowns quickly. Which makes CATO a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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