4.34 -0.11 (-2.47%) Sell

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

13 min read

NEVSUN RESOURCES LTD (Foreign) was among the worst performers today. It delivered -2.47% to close at 4.34. During the last week it delivered -2.47% and saw a maximum drawdown of -3.13% before bouncing back.

[Themes containing NSU]

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


NSU has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 31 Jan, 2018 to 23 Nov, 2018. Over the last 2 years 11 months and 8 days, NSU outperformed the SP500 index on 50% days. Which indicates that on days NSU outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months NSU was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +2.05%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -2.47%) was on Wednesday, 12 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 13 Nov, 2018 and went on till 21 Nov, 2018. This bullish trend returned +1.8% to investors.

The last 12 months saw NSU's investors making profits in 9 months and incurring losses in 3 months. During the last year, NSU delivered profits in more months than SP500 index. NSU significantly outperformed SP500 index in Sep 2018, when it returned +17.2% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NSU had a longer winning streak of profitable months than SP500 index. It went up in 8 straight months (from Feb 2018 to Sep 2018) during which period it delivered +81.49%.

Finance, like time, devours its own children.
-- Honore de Balzac

NSU is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in NSU's volatility from 14 Sep, 2018 to 9 Nov, 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 NSU 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 NSU. Therefore, SP500 must receive a lower allocation than NSU in your portfolio. SP500 index usually has shorter drawdown period than NSU.

Based on your interest in NSU you may find it interesting to know that DFBG has shown remarkable performance this year and deserves to be on every investors' watchlist.

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