MAGELLAN MIDSTREAM PARTNERS LP

56.85 -1.16 (-2.03%) Sell

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

13 min read

MAGELLAN MIDSTREAM PARTNERS LP delivered massive losses today. It returned -2.03% to close at 56.85. It's recent 5 day performance has been -2.49%, +1.21%, -0.89%, +0.05% and +0.2%.

[Themes containing MMP]

MMP showed a strong down trend over the last 3 months. During this period MMP returned -17.44% and saw a maximum drawdown of -17.56%. There was a short signal during this period which returned +17.44%.

Trend

MMP has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, MMP underperformed the SP500 index on 48% days. Which indicates that on days MMP underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

MMP returned losses on 56% days in the last three months. During this time, it delivered on average -0.3% per day. It delivered it's worst daily return of -3.0%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -7.78% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +2.74% to investors.

On monthly basis, MMP delivered losses in more months over the last year, than profits. MMP delivered profits less regularly than SP500 index. MMP significantly outperformed SP500 index in Apr 2018, when it returned +14.25% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MMP had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -21.8%. It is interesting to note that both MMP and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
-- Robert Kiyosaki

MMP 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 MMP's volatility from 19 Sep, 2018 to 30 Oct, 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 MMP 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 MMP. Therefore, SP500 must receive a lower allocation than MMP in your portfolio. SP500 index usually has shorter drawdown period than MMP.

Based on your interest in MMP you may find it interesting to know that PFE is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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