EQUINIX INC is a falling knife that can bleed you if you catch it on Friday. It fell by -0.62% to close at 386.9. On a day when the overall market breadth was 35%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
Buy-and-Hold investors in EQIX experienced a maximum drawdown of -15.83% over the last three months. It fell by -13.5% during this strong bearish 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 +8.78%.
EQIX has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 8 Nov, 2017 to 9 Nov, 2018. Over the last 2 years 11 months and 10 days, EQIX outperformed the SP500 index on 53% days.
During the last three months EQIX was mostly loss making and delivered on average -0.22% per day. It's best return during this period (of +2.95%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -6.49%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 15 Oct, 2018 and went on till 19 Oct, 2018. This bullish trend returned +4.58% to investors.
During the last year EQIX had 7 profitable months and 5 loss making months. EQIX returned profits in fewer months than SP500 index. EQIX was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -13.86% compared to -7.28% returned by SP500 index in Oct 2018. EQIX 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 -13.66%. It is interesting to note that both EQIX and SP500 index significantly outperform during months when quarterly/annual results are announced.
There is nothing wrong with changing a plan when the situation has changed.
EQIX is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in EQIX's volatility from 18 Sep, 2018 to 29 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 EQIX has significant positive skewness in it's return distribution. This indicates that investors can expect EQIX to recover from drawdowns quickly. Which makes EQIX a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Based on your interest in EQIX you may find it interesting to know that TWTR is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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