11.21 +0.15 (+1.36%) Sell

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

13 min read

JAGGED PEAK ENERGY INC. ranked among the best performers on Friday. It delivered +1.36% to close at 11.21. It is currently trading -31% below it's 52 week high of 16.35.

[Themes containing JAG]

JAG is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +6.65% for investors.


JAG has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 6 Feb, 2017 to 4 Jun, 2018. Over the last 1 year 10 months and 10 days, JAG underperformed the SP500 index on 50% days. Which indicates that on days JAG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months JAG delivered profits on 57% days. However, it still managed to end this period in a loss. It's best return during this period (of +7.08%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -7.12%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 10 Sep, 2018 and went on till 19 Sep, 2018. This bullish trend returned +14.04% to investors.

During the last year JAG had 5 profitable months and 7 loss making months. JAG returned profits in fewer months than SP500 index. JAG was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -18.67% compared to -7.28% returned by SP500 index in Oct 2018. JAG had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -20.71%. It is interesting to note that both JAG and SP500 index significantly outperform during months when quarterly/annual results are announced.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens

JAG 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 JAG's volatility from 22 Oct, 2018 to 14 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that JAG 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.

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

Based on your interest in JAG you may find it interesting to know that MSFT is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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
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