17.6 -0.07 (-0.4%) Sell

CMC investors dump it

13 min read

COMMERCIAL METALS CO delivered massive losses on Tuesday. It fell by -0.4% to close at 17.6. It is currently trading -32% below it's 52 week high of 26.13.

[Themes containing CMC]

CMC is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +15.14% for investors.


CMC has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 7 Dec, 2016 to 24 Oct, 2018. Over the last 2 years 11 months and 7 days, CMC underperformed the SP500 index on 48% days. Which indicates that on days CMC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

CMC returned losses on 59% days in the last three months. During this time, it delivered on average -0.28% per day. It delivered it's best daily return of +9.55%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 29 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +14.79% to investors.

During the last year CMC had 6 profitable months and 6 loss making months. CMC returned profits in fewer months than SP500 index. CMC was also a more risky investment than SP500 index as it's worst month in the last year, Mar 2018, returned -15.8% compared to -7.28% returned by SP500 index in Oct 2018. CMC had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -16.14%. It is interesting to note that both CMC and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Stay on top of your finances. Don't leave that up to others.

CMC is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in CMC's volatility from 1 Oct, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CMC has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in CMC), three instruments that are extremely volatile are OPNT, NVCN and IMTE. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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