MU was among the best performers today. On a longer term basis, investors in MICRON TECHNOLOGY INC made -0.1% per day. Wednesday's performance of +2.33% was a significant outperformance compared to it's daily average.
Buy-and-Hold investors in MU experienced a maximum drawdown of -24.75% over the last three months. It lost -17.4% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +17.4% for investors.
During the last three months MU was mostly loss making and delivered on average -0.26% per day. It's best return during this period (of +6.36%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -8.4%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 3 Oct, 2018 and went on till 10 Oct, 2018. The trend delivered -9.42% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 28 Nov, 2018. This bullish trend delivered +7.05% to investors.
MU had 5 profitable and 7 loss making months over the last year. During the last year, MU underperformed SP500 index on monthly return basis. MU significantly outperformed SP500 index in May 2018, when it returned +25.25% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MU had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -42.89%.
You know you are on the road to success if you would do your job, and not be paid for it.
-- Oprah Winfrey
MU 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 MU's volatility from 1 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 MU has significant positive skewness in it's return distribution. This indicates that investors can expect MU to recover from drawdowns quickly. Which makes MU a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in MU derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.
On a general note (since you are interested in MU), three large cap instruments that deserve special mention are CSCO, V and UNH. They have all outperformed the market and must be closely watched for investment opportunities.
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