16.61 +0.18 (+1.1%) Sell

ELY does a dead cat bounce, it's still too early to buy into it

13 min read

CALLAWAY GOLF CO was among the best performers today. It returned +1.1% to close at 16.61. It's recent 5 day performance has been -1.02%, -1.66%, +0.72%, -4.39% and +2.34%.

[Themes containing ELY]

ELY is currently in a down trend. The current bearish signal has generated a profit of +24.74% for investors in the last three months.


ELY has been underperforming the SP500 index in recent time, after having outperformed till 16 Oct, 2018. Over the last 2 years 11 months and 7 days, ELY outperformed the SP500 index on 52% days.

During the last three months ELY was mostly loss making and delivered on average -0.51% per day. It's best return during this period (of +3.94%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -9.41%) was on Friday, 30 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 8 Oct, 2018. The trend delivered -3.22% losses to investors. This was followed by a bullish trend that started on 11 Oct, 2018 and ended on 16 Oct, 2018. This bullish trend delivered +5.57% to investors.

On monthly basis, ELY delivered profits in more months over the last year, than losses. ELY delivered profits less regularly than SP500 index. ELY was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -19.95% compared to -7.28% returned by SP500 index in Oct 2018. ELY and SP500 index, both had periods of 6 consecutive profitable months.

Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.
-- Johann Wolfgang von Goethe

ELY 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 ELY's volatility from 21 Sep, 2018 to 4 Dec, 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 ELY 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 ELY. Therefore, SP500 must receive a lower allocation than ELY in your portfolio. SP500 index usually has shorter drawdown period than ELY.

Based on your interest in ELY you may find it interesting to know that FCCY, EVR and SVBI have all performed similar to ELY and qualify as alternative investment candidates that must be evaluated for diversification.

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