Joy for MIDD investors as it shows marginal outperformance
13 Dec, 201813 min read
Share with friends 
MIDDLEBY CORP outperformed today. It surged by +1.06% to close at 110.3. It's recent 5 day performance has been -0.23%, +0.28%, -0.26%, -2.36% and +0.11%.
MIDD is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +6.04% for investors.
MIDD has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 7 Dec, 2016 to 25 Jul, 2018. Over the last 2 years 11 months and 9 days, MIDD underperformed the SP500 index on 48% days. Which indicates that on days MIDD underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
MIDD was profitable on 50% days in the last three months. During this time, it delivered on average -0.2% per day. It delivered it's worst daily return of -6.2%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -5.94% of investor capital.
During the last year MIDD had 7 profitable months and 5 loss making months. MIDD returned profits in fewer months than SP500 index. MIDD was also a more risky investment than SP500 index as it's worst month in the last year, May 2018, returned -20.84% compared to -7.28% returned by SP500 index in Oct 2018. MIDD had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.
"Price is what you pay and value is what you get.
MIDD is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in MIDD's volatility from 14 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 MIDD has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
SP500 index has more chance of extreme outcomes than MIDD. Therefore, SP500 must receive a lower allocation than MIDD in your portfolio. SP500 index usually has shorter drawdown period than MIDD.
On a general note (since you are interested in MIDD), CSCO is a large cap that deserves to be closely tracked for investment opportunities.
... 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