69.17 -1.53 (-2.21%) Sell

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

13 min read

JOHN BEAN TECHNOLOGIES CORP was among the worst performers today. It returned -2.21% to close at 69.17. During the last week it returned -4.4% and saw a maximum drawdown of -5.79% before bouncing back.

[Themes containing JBT]

JBT is currently in a down trend. The current bearish signal has generated a profit of +33.56% for investors in the last three months.


JBT has been underperforming the SP500 index in recent time, after having outperformed till 30 Nov, 2017. Over the last 2 years 11 months and 10 days, JBT outperformed the SP500 index on 51% days.

During the last three months JBT was mostly loss making and delivered on average -0.87% per day. It's best return during this period (of +7.22%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -13.06%) was on Thursday, 1 Nov, 2018. There was initially a bearish trend during this period which started on 26 Sep, 2018 and went on till 8 Oct, 2018. The trend delivered -9.57% losses to investors. This was followed by a bullish trend that started on 15 Oct, 2018 and ended on 17 Oct, 2018. This bullish trend delivered +3.7% to investors.

On monthly basis, JBT delivered profits and losses in equal number of months. JBT delivered profits less regularly than SP500 index. JBT significantly outperformed SP500 index in Jul 2018, when it returned +22.55% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. JBT had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both JBT and SP500 index significantly outperform during months when quarterly/annual results are announced.

The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams

JBT is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in JBT's volatility from 20 Sep, 2018 to 7 Dec, 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 JBT 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.

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

Based on your interest in JBT you may find it interesting to know that IMTE and ICPT are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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