ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

10.39 +0.59 (+5.7%) Sell

MDRX does a dead cat bounce, it's still too early to buy into it

13 min read

ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. outperformed on Friday. It surged by +5.7% to close at 10.39. It is currently trading -35% below it's 52 week high of 16.03.

[Themes containing MDRX]

MDRX showed a strong bearish trend over the last 3 months. During this period MDRX fell by -28.49% and saw a maximum drawdown of -35.69%. There was a short signal during this period which returned +27.49%.

Trend

MDRX has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 22 Jan, 2016 to 6 Dec, 2018. Over the last 2 years 11 months and 10 days, MDRX underperformed the SP500 index on 49% days. Which indicates that on days MDRX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

MDRX returned losses on 56% days in the last three months. During this time, it delivered on average -0.47% per day. It delivered it's worst daily return of -18.94%, during this period, on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -8.68% of investor capital.

During the last year MDRX had 4 profitable months and 8 loss making months. MDRX returned profits in fewer months than SP500 index. MDRX significantly outperformed SP500 index in Aug 2018, when it returned +19.36% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MDRX had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -22.06%. It is interesting to note that both MDRX and SP500 index significantly outperform during months when quarterly/annual results are announced.

Finance, like time, devours its own children.
-- Honore de Balzac

MDRX 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 MDRX's volatility from 17 Sep, 2018 to 7 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 MDRX has significant positive skewness in it's return distribution. This indicates that investors can expect MDRX to recover from drawdowns quickly. Which makes MDRX 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 MDRX. Therefore, SP500 must receive a lower allocation than MDRX in your portfolio. SP500 index usually has shorter drawdown period than MDRX.

Based on your interest in MDRX you may find it interesting to know that CSCO and V are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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