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.


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.

"Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.

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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