NUCOR CORP has destroyed investor wealth on Tuesday. It lost -0.91% to close at 56.46. It is currently trading -19% below it's 52 week high of 70.18.
Buy-and-Hold investors in NUE experienced a maximum drawdown of -14.88% over the last three months. It lost -11.09% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +11.09% for investors.
During the last three months NUE delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.7%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.05%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 7 Nov, 2018. The bullish trend returned +13.57% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -7.95% of investor capital.
NUE had 6 profitable and 6 loss making months over the last year. During the last year, NUE underperformed SP500 index on monthly return basis. NUE was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -8.06% compared to -7.28% returned by SP500 index in Oct 2018. NUE had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both NUE and SP500 index significantly outperform during months when quarterly/annual results are announced.
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NUE 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 NUE's volatility from 3 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 NUE 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.
Investors trading in NUE derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.
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