CAMECO CORP (Foreign) was among the worst performers on Tuesday. It lost -0.17% to close at 11.67. It is currently trading +36% above it's 52 week low of 8.53 and is down only -6% from it's 52 week high.
CCJ showed a strong up trend over the last 3 months. During this period CCJ grew by +20.43% and saw a maximum drawdown of -14.88%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in CCJ till volatility reduces and a clear trend emerges.
During the last three months CCJ delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +15.36%) was on Thursday, 27 Sep, 2018. While it's worst loss in the same period (of -3.55%) was on Friday, 26 Oct, 2018. There was initially a bullish trend during this period which started on 30 Oct, 2018 and went on till 6 Nov, 2018. The bullish trend returned +18.79% to investors. This was followed by a bearish trend that started on 7 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -9.55% of investor capital.
CCJ had 5 profitable and 7 loss making months over the last year. During the last year, CCJ underperformed SP500 index on monthly return basis. CCJ significantly outperformed SP500 index in Apr 2018, when it returned +13.96% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CCJ had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.
Trading mastery is a state of complete acceptance of probability, not a state of fight it.
-- Yvan Byeajee
CCJ 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 CCJ's volatility from 19 Sep, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that CCJ has significant negative skewness in it's return distribution. This indicates that CCJ is very risky for short-term investment and can significantly underperform for long durations.
Investors trading in CCJ derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.
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