66.99 +1.97 (+2.93%) Sell

PJC does a dead cat bounce, it's still too early to buy into it

13 min read

PIPER JAFFRAY COMPANIES outperformed today. It surged by +2.93% to close at 66.99. During the last week it surged by +1.27% and saw a maximum drawdown of -1.62% before bouncing back.

[Themes containing PJC]

PJC is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +1.6% for investors.


PJC has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 Feb, 2016 to 1 Feb, 2018. Over the last 2 years 11 months and 7 days, PJC outperformed the SP500 index on 53% days.

PJC returned losses on 53% days in the last three months. During this time, it delivered on average -0.12% per day. It delivered it's worst daily return of -5.94%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 21 Sep, 2018 and ended on 27 Sep, 2018. This bearish trend lost -5.59% of investor capital.

The last 12 months saw PJC's investors making profits in 4 months and incurring losses in 8 months. PJC was less consistent in delivering monthly returs than SP500 index. PJC was also a more risky investment than SP500 index as it's worst month in the last year, Apr 2018, returned -14.25% compared to -7.28% returned by SP500 index in Oct 2018. PJC had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -9.74%.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

PJC 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 PJC's volatility from 9 Oct, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

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

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

On a general note (since you are interested in PJC), two instruments that deserve special mention are NFEC and AMRN. They have significantly outperformed the overall market this year.

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