49.04 0.0 (0.0%) Sell

Waiting to invest in JWN? Look for alternatives because it delivered lacklustre performance

13 min read

NORDSTROM INC delivered lacklustre performance today. It delivered 0.0% to close at 49.04. It's recent 5 day performance has been 0.0%, +0.65%, +2.69%, +0.26% and +4.58%.

[Themes containing JWN]

JWN showed a strong bearish trend over the last 3 months. During this period JWN delivered -25.11% and saw a maximum drawdown of -27.31%. There was a short signal during this period which returned +3.71%.


JWN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 10 Mar, 2016 to 8 Nov, 2017. Over the last 2 years 11 months and 7 days, JWN underperformed the SP500 index on 48% days. Which indicates that on days JWN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

JWN returned losses on 59% days in the last three months. During this time, it delivered on average -0.43% per day. It delivered it's worst daily return of -13.66%, during this period, on Friday, 16 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 9 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -25.51% of investor capital.

The last 12 months saw JWN's investors making profits in 7 months and incurring losses in 5 months. JWN was less consistent in delivering monthly returs than SP500 index. JWN significantly outperformed SP500 index in Aug 2018, when it returned +19.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. JWN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both JWN and SP500 index significantly outperform during months when quarterly/annual results are announced.

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
-- Warren Buffett

JWN 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 JWN's volatility from 13 Sep, 2018 to 20 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

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

On a general note (since you are interested in JWN), three small cap instruments that deserve special mention are ZBRA, HQY and AAXN. They have all outperformed the market and must be closely watched for investment opportunities.

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