NORDSON CORP is a falling knife that can bleed you if you catch it on Monday. It lost -3.18% to close at 114.78. On a day when the overall market breadth was 34%, it closed higher than 12% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
NDSN is currently in a down trend. The current bearish signal has generated a profit of +13.91% for investors in the last three months.
During the last three months NDSN was mostly loss making and delivered on average -0.35% per day. It's best return during this period (of +6.33%) was on Thursday, 13 Dec, 2018. While it's worst loss in the same period (of -5.08%) was on Tuesday, 27 Nov, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -5.47% 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 +10.41% to investors.
NDSN had 4 profitable and 8 loss making months over the last year. During the last year, NDSN underperformed SP500 index on monthly return basis. NDSN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -10.8% compared to -7.28% returned by SP500 index in Oct 2018. NDSN had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -14.27%.
The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams
NDSN 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 NDSN's volatility from 3 Oct, 2018 to 13 Dec, 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 NDSN 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.
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