4.8 -0.11 (-2.24%) Sell

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

13 min read

INSYS THERAPEUTICS, INC. significantly underperformed on Monday. It returned -2.24% to close at 4.8 which is it's 52 week low, down -64% from it's 52 week high.

[Themes containing INSY]

INSY is currently in a down trend. The current bearish signal has generated a profit of +47.14% for investors in the last three months.


INSY has been underperforming the SP500 index in recent time, after having outperformed till 7 Jan, 2016. Over the last 2 years 11 months and 10 days, INSY underperformed the SP500 index on 53% days.

During the last three months INSY was mostly loss making and delivered on average -0.96% per day. It's best return during this period (of +9.75%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -11.61%) was on Tuesday, 6 Nov, 2018. There was initially a bullish trend during this period which started on 30 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +17.54% to investors. This was followed by a bearish trend that started on 26 Nov, 2018 and ended on 6 Dec, 2018. This bearish trend lost -26.02% of investor capital.

On monthly basis, INSY delivered losses in more months over the last year, than profits. INSY delivered profits less regularly than SP500 index. INSY significantly outperformed SP500 index in Aug 2018, when it returned +40.39% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. INSY 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 -58.04%. It is interesting to note that both INSY and SP500 index significantly outperform during months when quarterly/annual results are announced.

Some of the people in finance touch enormous parts of the economy.
-- Stephen A. Schwarzman

INSY 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 fall in INSY's volatility from 18 Sep, 2018 to 30 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that INSY has significant positive skewness in it's return distribution. This indicates that investors can expect INSY to recover from drawdowns quickly. Which makes INSY 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 INSY. Therefore, SP500 must receive a lower allocation than INSY in your portfolio. SP500 index usually has shorter drawdown period than INSY.

Based on your interest in INSY you may find it interesting to know that ICPT, IX and NVCN are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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