INTERNATIONAL BUSINESS MACHINES CORP managed to outperform the broader market today. It surged by +0.47% to close at 116.65. It's recent 5 day performance has been -3.17%, -0.69%, -0.35%, +0.22% and -0.2%.
IBM is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +9.95% for investors.
IBM has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 26 Jan, 2017 to 1 Nov, 2018. Over the last 2 years 11 months and 14 days, IBM underperformed the SP500 index on 49% days. Which indicates that on days IBM underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
IBM returned losses on 56% days in the last three months. During this time, it delivered on average -0.37% per day. It delivered it's worst daily return of -7.63%, during this period, on Wednesday, 17 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 3 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -9.96% of investor capital.
During the last year IBM had 5 profitable months and 7 loss making months. IBM returned profits in fewer months than SP500 index. IBM was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -24.56% compared to -7.75% returned by SP500 index in Dec 2018. IBM had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -13.42%. It is interesting to note that both IBM and SP500 index significantly outperform during months when quarterly/annual results are announced.
Greed is not a financial issue. It's a heart issue.
-- Andy Stanley
IBM 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 IBM's volatility from 2 Oct, 2018 to 30 Oct, 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 IBM has significant positive skewness in it's return distribution. This indicates that investors can expect IBM to recover from drawdowns quickly. Which makes IBM a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in IBM derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
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