145.78 -3.95 (-2.71%) Sell

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

13 min read

MCO was among the worst performers today. On a longer term basis, investors in MOODYS CORP made -0.06% per day. Friday's performance of -2.71% was a significant underperformance compared to it's daily average.

[Themes containing MCO]

MCO showed a strong down trend over the last 3 months. During this period MCO returned -17.71% and saw a maximum drawdown of -22.26%. There were 2 short signals during this period that returned a cumulative of +9.1% to investors.


MCO has been underperforming the SP500 index in recent time, after having outperformed till 23 Jul, 2018. Over the last 2 years 11 months and 3 days, MCO outperformed the SP500 index on 57% days.

MCO returned losses on 58% days in the last three months. During this time, it delivered on average -0.29% per day. It delivered it's worst daily return of -8.67%, during this period, on Friday, 26 Oct, 2018. There was initially a bullish trend during this period which started on 10 Sep, 2018 and went on till 14 Sep, 2018. The bullish trend returned +2.46% to investors. This was followed by a bearish trend that started on 2 Oct, 2018 and ended on 5 Oct, 2018. This bearish trend lost -4.91% of investor capital.

On monthly basis, MCO delivered profits in more months over the last year, than losses. MCO delivered profits less regularly than SP500 index. MCO was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.2% compared to -7.28% returned by SP500 index in Oct 2018. MCO had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

"Infinite growth of material consumption in a finite world is an impossibility.

MCO 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 MCO's volatility from 13 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

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

On a general note (since you are interested in MCO), AMD is a mid 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
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{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