130.42 +1.29 (+0.99%) Sell

Joy for JNJ investors as it ranks better than it's peers but, has not managed to breakout

13 min read

JOHNSON & JOHNSON outperformed on Tuesday. It surged by +0.99% to close at 130.42. It is currently trading -11% below it's 52 week high of 148.14.

[Themes containing JNJ]

Buy-and-Hold investors in JNJ experienced a maximum drawdown of -12.65% over the last three months. It fell by -7.15% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


JNJ has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jul, 2016 to 18 Jun, 2018. Over the last 2 years 11 months and 14 days, JNJ outperformed the SP500 index on 51% days.

JNJ was profitable on 53% days in the last three months. During this time, it delivered on average -0.1% per day. It delivered it's worst daily return of -10.04%, during this period, on Friday, 14 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 5 Nov, 2018 and went on till 12 Nov, 2018. This bullish trend returned +3.47% to investors.

During the last year JNJ had 7 profitable months and 5 loss making months. JNJ returned profits in fewer months than SP500 index. JNJ was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -11.22% compared to -7.75% returned by SP500 index in Dec 2018. JNJ and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both JNJ and SP500 index significantly outperform during months when quarterly/annual results are announced.

When you stop chasing the wrong things you give the right things a chance to catch you.
-- Lolly Daskal

JNJ 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 JNJ's volatility from 19 Sep, 2018 to 14 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 JNJ has significant positive skewness in it's return distribution. This indicates that investors can expect JNJ to recover from drawdowns quickly. Which makes JNJ a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in JNJ 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 JNJ. Therefore, SP500 must receive a lower allocation than JNJ in your portfolio. JNJ usually has shorter drawdown period than the SP500 index.

Based on your interest in JNJ you may find it interesting to know that RHT, LULU and EW are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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