17.83 +0.02 (+0.11%) Sell

CUTR shows sign of weakness as investors do cost averaging

13 min read

CUTERA INC performed better than the broader market on Wednesday. It returned +0.11% to close at 17.83. It is currently trading -68% below it's 52 week high of 55.85.

[Themes containing CUTR]

CUTR is currently in a down trend. The current bearish signal has generated a profit of +43.4% for investors in the last three months.


CUTR has been underperforming the SP500 index in recent time, after having outperformed till 8 May, 2018. Over the last 2 years 11 months and 8 days, CUTR outperformed the SP500 index on 51% days.

During the last three months CUTR was mostly loss making and delivered on average -0.8% per day. It's best return during this period (of +5.35%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -26.06%) was on Friday, 5 Oct, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 28 Sep, 2018. The bullish trend returned +10.01% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 25 Oct, 2018. This bearish trend lost -11.35% of investor capital.

CUTR had 4 profitable and 8 loss making months over the last year. During the last year, CUTR underperformed SP500 index on monthly return basis. CUTR was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -33.88% compared to -7.28% returned by SP500 index in Oct 2018. CUTR had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -75.4%. It is interesting to note that both CUTR and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.

CUTR 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 CUTR's volatility from 19 Sep, 2018 to 7 Nov, 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 CUTR has significant positive skewness in it's return distribution. This indicates that investors can expect CUTR to recover from drawdowns quickly. Which makes CUTR a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in CUTR), if you are an investor in NVCN, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.

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