21.84 -0.4 (-1.84%) Sell

JBL investors looking to exit as part of sectoral rotation

13 min read

JABIL INC delivered massive losses on Friday. It delivered -1.84% to close at 21.84 which is it's 52 week low, down -30% from it's 52 week high.

[Themes containing JBL]

JBL is currently in a bearish trend. The current bearish signal has generated a profit of +20.32% for investors in the last three months.


JBL has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 8 Jun, 2017 to 9 Oct, 2018. Over the last 2 years 11 months and 10 days, JBL underperformed the SP500 index on 47% days. Which indicates that on days JBL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months JBL was mostly loss making and delivered on average -0.44% per day. It's best return during this period (of +4.37%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.25%) was on Tuesday, 25 Sep, 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 -14.44% of investor capital.

The last 12 months saw JBL's investors making profits in 6 months and incurring losses in 6 months. JBL was less consistent in delivering monthly returs than SP500 index. JBL was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -12.54% compared to -7.28% returned by SP500 index in Oct 2018. JBL had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

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

JBL 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 JBL's volatility from 21 Sep, 2018 to 30 Oct, 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 JBL has significant positive skewness in it's return distribution. This indicates that investors can expect JBL to recover from drawdowns quickly. Which makes JBL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in JBL derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in JBL you may find it interesting to know that ICPT is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to ICPT or sufficiently diversifying your portfolio.

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