NANOMETRICS INC

28.19 -0.63 (-2.22%) Sell

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

13 min read

NANO has destroyed investor wealth today. On a longer term basis, investors in NANOMETRICS INC made -0.04% per day. Friday's performance of -2.22% was a significant underperformance compared to it's daily average.

[Themes containing NANO]

Buy-and-Hold investors in NANO experienced a maximum drawdown of -24.87% over the last three months. It returned -23.42% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +23.42% for investors.

Trend

NANO has been underperforming the SP500 index in recent time, after having outperformed till 14 Aug, 2018. Over the last 2 years 11 months and 10 days, NANO outperformed the SP500 index on 52% days.

During the last three months NANO was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +4.66%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -10.39%) was on Thursday, 4 Oct, 2018. There was initially a bearish trend during this period which started on 1 Oct, 2018 and went on till 5 Oct, 2018. The trend delivered -19.29% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +8.82% to investors.

On monthly basis, NANO delivered profits and losses in equal number of months. NANO delivered profits less regularly than SP500 index. NANO significantly outperformed SP500 index in May 2018, when it returned +69.1% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NANO had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
-- Norman Vincent Peale

NANO 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 NANO's volatility from 17 Sep, 2018 to 31 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 NANO 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 NANO. Therefore, SP500 must receive a lower allocation than NANO in your portfolio. SP500 index usually has shorter drawdown period than NANO.

On a general note (since you are interested in NANO), two instruments that have been extremely volatile in recent times are OPNT and IX. Investors in these instruments should consider reducing their exposure (to OPNT and IX) and diversifying their portfolios.

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