MAIN STREET CAPITAL CORP is a falling knife that can bleed you if you catch it on Thursday. It returned -0.16% to close at 37.48. On a day when the overall market breadth was 35%, it closed higher than 68% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.
MAIN is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +3.98% for investors.
MAIN has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, MAIN underperformed the SP500 index on 47% days. Which indicates that on days MAIN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months MAIN was mostly loss making and delivered on average -0.08% per day. It's best return during this period (of +3.31%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -1.98%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 2 Oct, 2018 and went on till 8 Oct, 2018. The trend delivered -3.64% losses to investors. This was followed by a bullish trend that started on 11 Oct, 2018 and ended on 16 Oct, 2018. This bullish trend delivered +3.5% to investors.
On monthly basis, MAIN delivered profits and losses in equal number of months. MAIN delivered profits less regularly than SP500 index. MAIN was also a less risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -6.24% compared to -7.28% returned by SP500 index in Oct 2018. MAIN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
Buy at the point of maximum pessimism; sell at the point of maximum optimism.
-- Sir John Templeton
MAIN 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 MAIN's volatility from 19 Sep, 2018 to 7 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that MAIN has significant positive skewness in it's return distribution. This indicates that investors can expect MAIN to recover from drawdowns quickly. Which makes MAIN a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Based on your interest in MAIN you may find it interesting to know that TNDM has shown remarkable performance this year and deserves to be on every investors' watchlist.
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