13.16 +0.12 (+0.92%) Sell

Profit booking on the minds of CY investors as it marginally outperforms

13 min read

CYPRESS SEMICONDUCTOR CORP is looking better than most other alternatives today. It grew by +0.92% to close at 13.16. During the last week it returned -1.57% and saw a maximum drawdown of -3.14% before bouncing back.

[Themes containing CY]

Buy-and-Hold investors in CY experienced a maximum drawdown of -26.91% over the last three months. It returned -14.66% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.04%.


CY has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 8 days, CY outperformed the SP500 index on 53% days.

During the last three months CY delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +5.49%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -10.23%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -10.99% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +15.18% to investors.

On monthly basis, CY delivered losses in more months over the last year, than profits. CY delivered profits less regularly than SP500 index. CY was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -15.8% compared to -7.28% returned by SP500 index in Oct 2018. CY 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 -29.0%. It is interesting to note that both CY and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Infinite growth of material consumption in a finite world is an impossibility.

CY 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 CY's volatility from 21 Sep, 2018 to 1 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 CY has significant positive skewness in it's return distribution. This indicates that investors can expect CY to recover from drawdowns quickly. Which makes CY 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 CY. Therefore, SP500 must receive a lower allocation than CY in your portfolio. SP500 index usually has shorter drawdown period than CY.

On a general note (since you are interested in CY), I has performed really well this year and deserves to be closely tracked for investment opportunities.

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