NEXTERA ENERGY INC

182.86 +0.2 (+0.11%) Buy

NEE continues to mint money for it's investors

13 min read

NEXTERA ENERGY INC ranked among the best performers on Friday. It delivered +0.11% to close at 182.86. On a day when the overall market breadth was 35%, it closed higher than 8% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing NEE]

NEE is currently in a bullish trend. The previous long signal in NEE has not been profitable for investors in general. If you are invested in NEE at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

NEE has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 4 Jan, 2016 to 7 Dec, 2018. One must note that NEE is currently at it's peak outperformance to the SP500 index which makes it a good investment candidate. Over the last 2 years 11 months and 3 days, NEE outperformed the SP500 index on 52% days.

During the last three months NEE was mostly profitable and delivered on average +0.1% per day. It's best return during this period (of +2.91%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -2.46%) was on Wednesday, 19 Sep, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 5 Nov, 2018 and went on till 13 Nov, 2018. This bullish trend returned +6.09% to investors.

The last 12 months saw NEE's investors making profits in 9 months and incurring losses in 3 months. During the last year, NEE delivered profits in more months than SP500 index. NEE significantly outperformed SP500 index in Mar 2018, when it returned +7.35% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NEE had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both NEE and SP500 index significantly outperform during months when quarterly/annual results are announced.

"If all the economists were laid end to end, they'd never reach a conclusion.

NEE is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in NEE's volatility from 11 Sep, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that NEE has significant positive skewness in it's return distribution. This indicates that investors can expect NEE to recover from drawdowns quickly. Which makes NEE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

NEE has more chance of extreme outcomes than the SP500 index. Therefore, NEE must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than NEE.

Based on your interest in NEE you may find it interesting to know that OPNT and ICPT are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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