KEANE GROUP, INC.

8.93 -0.19 (-2.08%) Sell

FRAC is a falling knife, continues to bleed every investor trying to catch it

13 min read

KEANE GROUP, INC. is a falling knife that can bleed you if you catch it today. It lost -2.08% to close at 8.93. During the last week it lost -19.69% and saw a maximum drawdown of -19.98% before bouncing back.

[Themes containing FRAC]

FRAC is currently in a down trend. The current bearish signal has generated a profit of +20.27% for investors in the last three months.

Trend

FRAC has been underperforming the SP500 index in recent time, after having outperformed till 1 Feb, 2017. Over the last 1 year and 11 months, FRAC underperformed the SP500 index on 51% days.

During the last three months FRAC was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +7.92%) was on Wednesday, 12 Sep, 2018. While it's worst loss in the same period (of -12.19%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 1 Oct, 2018 and went on till 9 Oct, 2018. The bullish trend returned +8.91% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -18.4% of investor capital.

FRAC had 3 profitable and 9 loss making months over the last year. During the last year, FRAC underperformed SP500 index on monthly return basis. FRAC was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -19.69% compared to -7.28% returned by SP500 index in Oct 2018. FRAC had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -24.92%. It is interesting to note that both FRAC and SP500 index significantly outperform during months when quarterly/annual results are announced.

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FRAC 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 fall in FRAC's volatility from 12 Sep, 2018 to 28 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FRAC has significant positive skewness in it's return distribution. This indicates that investors can expect FRAC to recover from drawdowns quickly. Which makes FRAC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in FRAC), two small cap instruments that deserve special mention are AAXN and HQY. They have significantly outperformed the overall market.

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