DTE ENERGY CO

118.22 -1.58 (-1.34%) Buy

DTE investors herd to book profits while the going is good

13 min read

DTE ENERGY CO was among the worst performers on Friday. It returned -1.34% to close at 118.22. On a day when the overall market breadth was 35%, it closed higher than 12% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing DTE]

Buy-and-Hold investors in DTE experienced a maximum drawdown of -5.37% over the last three months. It grew by +5.23% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +0.39%.

Trend

DTE has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, DTE outperformed the SP500 index on 53% days.

During the last three months DTE was mostly profitable and delivered on average +0.09% per day. It's best return during this period (of +5.15%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -3.04%) was on Wednesday, 19 Sep, 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 -2.48% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 13 Nov, 2018. This bullish trend delivered +7.47% to investors.

On monthly basis, DTE delivered profits in more months over the last year, than losses. DTE delivered profits less regularly than SP500 index. DTE significantly outperformed SP500 index in Nov 2018, when it returned +6.53% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. DTE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both DTE and SP500 index significantly outperform during months when quarterly/annual results are announced.

Here's my gift-giving rule: Respect your current financial situation.
-- Suze Orman

DTE 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 DTE's volatility from 17 Sep, 2018 to 26 Oct, 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 DTE has significant positive skewness in it's return distribution. This indicates that investors can expect DTE to recover from drawdowns quickly. Which makes DTE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in DTE), AMD is a mid cap that deserves to be closely tracked for investment opportunities.

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