STEVEN MADDEN, LTD.

28.78 -0.12 (-0.42%) Sell

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

13 min read

STEVEN MADDEN, LTD. delivered massive losses today. It delivered -0.42% to close at 28.78. It's recent 5 day performance has been -3.22%, +0.98%, +1.79%, -0.14% and -3.68%.

[Themes containing SHOO]

SHOO is currently in a bearish trend. The current bearish signal has generated a profit of +47.24% for investors in the last three months.

Trend

SHOO has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 23 Aug, 2018 to 19 Oct, 2018. Over the last 2 years 11 months and 10 days, SHOO underperformed the SP500 index on 49% days. Which indicates that on days SHOO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months SHOO was mostly loss making and delivered on average -0.93% per day. It's best return during this period (of +9.89%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -32.96%) was on Friday, 12 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 21 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -14.36% of investor capital.

The last 12 months saw SHOO's investors making profits in 6 months and incurring losses in 6 months. SHOO was less consistent in delivering monthly returs than SP500 index. SHOO was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -40.22% compared to -7.28% returned by SP500 index in Oct 2018. SHOO and SP500 index, both had periods of 6 consecutive profitable months.

"I grew up in Finance.

SHOO is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SHOO's volatility from 19 Sep, 2018 to 1 Nov, 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 SHOO has significant positive skewness in it's return distribution. This indicates that investors can expect SHOO to recover from drawdowns quickly. Which makes SHOO 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 SHOO. Therefore, SP500 must receive a lower allocation than SHOO in your portfolio. SHOO usually has shorter drawdown period than the SP500 index.

Based on your interest in SHOO you may find it interesting to know that AXE has delivered similar performance as SHOO and can be considered as an alternative investment candidate (to SHOO).

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