11.71 -0.16 (-1.35%) Sell

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

13 min read

SEA LTD (Foreign) ranked among the worst performers on Monday. It fell by -1.35% to close at 11.71. On a day when the overall market breadth was 34%, it closed higher than 8% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing SE]

SE is currently in a bearish trend. The current bearish signal has generated a profit of +12.87% for investors in the last three months.


SE has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 20 Oct, 2017 to 14 May, 2018. Over the last 1 year and 2 months, SE underperformed the SP500 index on 51% days.

During the last three months SE was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +8.04%) was on Friday, 12 Oct, 2018. While it's worst loss in the same period (of -7.7%) was on Thursday, 4 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -11.9% of investor capital.

During the last year SE had 5 profitable months and 7 loss making months. SE returned profits in fewer months than SP500 index. SE significantly outperformed SP500 index in May 2018, when it returned +40.99% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SE had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

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

SE 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 SE's volatility from 19 Sep, 2018 to 21 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SE has significant negative skewness in it's return distribution. This indicates that SE is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SE), two instruments that deserve special mention are AYTU and TYHT. They have significantly outperformed the overall market.

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