WARRIOR MET COAL, INC.

23.36 -1.17 (-5.0%) Sell

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

13 min read

WARRIOR MET COAL, INC. significantly underperformed today. It lost -5.0% to close at 23.36. It's recent 5 day performance has been -0.77%, +1.98%, +2.75%, +0.85% and -2.29%.

[Themes containing HCC]

HCC is currently in a down trend. The current bearish signal has generated a profit of +7.41% for investors in the last three months.

Trend

HCC has been outperforming the SP500 index in recent time. Over the last 1 year 8 months and 1 days, HCC outperformed the SP500 index on 52% days.

HCC was profitable on 50% days in the last three months. During this time, it delivered on average -0.14% per day. It delivered it's worst daily return of -9.71%, during this period, on Tuesday, 20 Nov, 2018. There was initially a bearish trend during this period which started on 2 Oct, 2018 and went on till 4 Oct, 2018. The trend delivered -4.32% losses to investors. This was followed by a bullish trend that started on 11 Oct, 2018 and ended on 17 Oct, 2018. This bullish trend delivered +12.11% to investors.

HCC had 6 profitable and 6 loss making months over the last year. During the last year, HCC underperformed SP500 index on monthly return basis. HCC was also a more risky investment than SP500 index as it's worst month in the last year, Apr 2018, returned -18.79% compared to -7.28% returned by SP500 index in Oct 2018. HCC had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

Innovation distinguishes between a leader and a follower.
-- Steve Jobs

HCC is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in HCC's volatility from 20 Sep, 2018 to 28 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

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

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

Based on your interest in HCC you may find it interesting to know that HEAR has shown remarkable performance this year and deserves to be on every investors' watchlist.

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