MT delivered stellar performance today. On a longer term basis, investors in ARCELORMITTAL (Foreign) made -0.02% per day. Tuesday's performance of +0.79% was a significant outperformance compared to it's daily average.
MT showed a strong down trend over the last 3 months. During this period MT returned -25.52% and saw a maximum drawdown of -34.3%. There were 2 short signals during this period that returned a cumulative of +19.68% to investors.
MT returned losses on 54% days in the last three months. During this time, it delivered on average -0.44% per day. It delivered it's worst daily return of -8.58%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 13 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +11.31% to investors. This was followed by a bearish trend that started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -16.3% of investor capital.
On monthly basis, MT delivered losses in more months over the last year, than profits. MT delivered profits less regularly than SP500 index. MT was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -20.1% compared to -7.28% returned by SP500 index in Oct 2018. MT had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -33.9%. It is interesting to note that both MT and SP500 index significantly outperform during months when quarterly/annual results are announced.
I never dreamed about success, I worked for it.
-- Estee Lauder
MT 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 MT's volatility from 3 Oct, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that MT has significant positive skewness in it's return distribution. This indicates that investors can expect MT to recover from drawdowns quickly. Which makes MT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in MT derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.
Based on your interest in MT you may find it interesting to know that AMRH has shown remarkable performance and deserves to be on every investors' watchlist.
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