ROCKWELL AUTOMATION INC is a falling knife that can bleed you if you catch it on Thursday. It lost -1.22% to close at 157.2. It is currently trading -24% below it's 52 week high of 207.92.
ROK is currently in a down trend. The current bearish signal has generated a profit of +5.44% for investors in the last three months.
During the last three months ROK was mostly loss making and delivered on average -0.3% per day. It's best return during this period (of +5.24%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.04%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +2.85% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -11.52% of investor capital.
ROK had 4 profitable and 8 loss making months over the last year. During the last year, ROK underperformed SP500 index on monthly return basis. ROK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.38% compared to -7.28% returned by SP500 index in Oct 2018. ROK had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -14.83%. It is interesting to note that both ROK and SP500 index significantly outperform during months when quarterly/annual results are announced.
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ROK 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 ROK's volatility from 17 Sep, 2018 to 11 Dec, 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 ROK 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.
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