GRAINGER W W INC

286.73 +1.43 (+0.5%) Sell

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

13 min read

GRAINGER W W INC outperformed the broader market on Tuesday. It increased by +0.5% to close at 286.73. On a day when the overall market breadth was 35%, it closed higher than 15% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing GWW]

GWW is currently in a bearish trend. The current bearish signal has generated a profit of +14.51% for investors in the last three months.

Trend

GWW has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 28 Aug, 2017 to 21 Aug, 2018. Over the last 2 years 11 months and 7 days, GWW outperformed the SP500 index on 53% days.

During the last three months GWW was mostly loss making and delivered on average -0.31% per day. It's best return during this period (of +3.35%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -11.95%) was on Tuesday, 16 Oct, 2018. The longest stort-term trends during this period were 6 profitable and losing days. The bullish trend (which returned +6.49%) started on 26 Oct, 2018 and went on till 2 Nov, 2018 while the bearish trend (which returned -14.43%) started on 4 Oct, 2018 and went on till 11 Oct, 2018.

The last 12 months saw GWW's investors making profits in 8 months and incurring losses in 4 months. During the last year, GWW and SP500 index had the same number of profitable months. GWW was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -20.23% compared to -7.28% returned by SP500 index in Oct 2018. GWW had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both GWW and SP500 index significantly outperform during months when quarterly/annual results are announced.

"We ignore outlooks and forecasts.. we're lousy at it and we admit it .. everyone else is lousy too, but most people won't admit it.

GWW is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in GWW's volatility from 13 Sep, 2018 to 16 Oct, 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 GWW 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 GWW derivatives at this moment can consider 'Calendar Spread' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in GWW), AYTU has performed really well and deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter