METTLER TOLEDO INTERNATIONAL INC

587.12 -12.2 (-2.08%) Sell

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

13 min read

METTLER TOLEDO INTERNATIONAL INC delivered massive losses on Friday. It lost -2.08% to close at 587.12. On a day when the overall market breadth was 35%, it closed higher than 80% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing MTD]

Buy-and-Hold investors in MTD experienced a maximum drawdown of -14.98% over the last three months. It lost -3.8% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

MTD has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, MTD outperformed the SP500 index on 56% days.

During the last three months MTD delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.17%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.61%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 3 Oct, 2018 and went on till 15 Oct, 2018. The trend delivered -10.19% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 9 Nov, 2018. This bullish trend delivered +13.15% to investors.

MTD had 5 profitable and 7 loss making months over the last year. During the last year, MTD underperformed SP500 index on monthly return basis. MTD significantly outperformed SP500 index in Nov 2018, when it returned +16.43% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MTD had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -17.55%. It is interesting to note that both MTD and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I finally know what distinguishes man from the other beasts: financial worries.

MTD is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in MTD's volatility from 17 Sep, 2018 to 19 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 MTD has significant positive skewness in it's return distribution. This indicates that investors can expect MTD to recover from drawdowns quickly. Which makes MTD 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 MTD. Therefore, SP500 must receive a lower allocation than MTD in your portfolio. SP500 index usually has shorter drawdown period than MTD.

On a general note (since you are interested in MTD), DFBG has performed really well this year and 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
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