55.33 -1.06 (-1.91%) Sell

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

13 min read

POSCO (Foreign) is a falling knife that can bleed you if you catch it on Friday. It returned -1.91% to close at 55.33. It is currently trading -40% below it's 52 week high of 92.78.

[Themes containing PKX]

PKX is currently in a down trend. The current bearish signal has generated a profit of +15.51% for investors in the last three months.


PKX has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, PKX outperformed the SP500 index on 52% days.

During the last three months PKX delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.07%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -8.32%) was on Thursday, 4 Oct, 2018. There was initially a bearish trend during this period which started on 8 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -5.46% losses to investors. This was followed by a bullish trend that started on 12 Oct, 2018 and ended on 17 Oct, 2018. This bullish trend delivered +3.8% to investors.

On monthly basis, PKX delivered losses in more months over the last year, than profits. PKX delivered profits less regularly than SP500 index. PKX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -13.3% compared to -7.28% returned by SP500 index in Oct 2018. PKX had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -27.6%. It is interesting to note that both PKX and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's good to have money and the things that money can buy, but It's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy.
-- George Lorimer

PKX is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in PKX's volatility from 19 Sep, 2018 to 29 Oct, 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 PKX 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.

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

On a general note (since you are interested in PKX), three instruments that deserve special mention are SBOT, APRN and NSPR. They have all outperformed the market and must be closely watched for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter