M
MACY'S, INC.

30.61 -0.19 (-0.62%) Buy

M investors herd to book profits while the going is good

13 min read

MACY'S, INC. ranked among the worst performers on Friday. It lost -0.62% to close at 30.61. On a day when the overall market breadth was 35%, it closed higher than 67% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing M]

M is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning -12.94%) for M's investors than trading long signals.

Trend

M has been underperforming the SP500 index in recent time, after having outperformed till 4 Mar, 2016. Over the last 2 years 11 months and 10 days, M underperformed the SP500 index on 47% days. Which indicates that on days M underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months M was mostly loss making and delivered on average -0.19% per day. It's best return during this period (of +5.12%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -7.18%) was on Wednesday, 14 Nov, 2018. There was initially a bullish trend during this period which started on 1 Nov, 2018 and went on till 8 Nov, 2018. The bullish trend returned +9.82% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -15.4% of investor capital.

M had 6 profitable and 6 loss making months over the last year. During the last year, M underperformed SP500 index on monthly return basis. M significantly outperformed SP500 index in Feb 2018, when it returned +13.33% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. M and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both M and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.
-- Benjamin Franklin

M is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in M's volatility from 19 Sep, 2018 to 16 Nov, 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 M has significant positive skewness in it's return distribution. This indicates that investors can expect M to recover from drawdowns quickly. Which makes M a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in M derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in M), ZBRA is a small cap that deserves to be closely tracked for investment opportunities.

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
Following
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