ALPHABET INC. significantly underperformed on Monday. It fell by -3.82% to close at 1027.42. It is currently trading -20% below it's 52 week high of 1285.5.
GOOGL showed a strong bearish trend over the last 3 months. During this period GOOGL fell by -15.92% and saw a maximum drawdown of -18.76%. There was a short signal during this period which returned +11.42%.
GOOGL has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 30 Jun, 2016 to 26 Jul, 2018. Over the last 2 years and 11 months, GOOGL outperformed the SP500 index on 54% days.
During the last three months GOOGL was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +4.4%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.18%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 30 Aug, 2018 and ended on 10 Sep, 2018. This bearish trend lost -7.29% of investor capital.
During the last year GOOGL had 7 profitable months and 5 loss making months. GOOGL returned profits in fewer months than SP500 index. GOOGL significantly outperformed SP500 index in Jan 2018, when it returned +10.16% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GOOGL had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both GOOGL and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Cash combined with courage in a time of crisis is priceless.
GOOGL 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 GOOGL's volatility from 29 Aug, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 20 Aug, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that GOOGL 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.
Investors trading in GOOGL derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
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