61.99 -2.36 (-3.8%) Sell

Stop-loss on the minds of SINA investors as it destroyed investor wealth

13 min read

SINA CORP (Foreign) has destroyed investor wealth on Thursday. It lost -3.8% to close at 61.99. It is currently trading -49% below it's 52 week high of 122.92.

[Themes containing SINA]

SINA is currently in a down trend. The current bearish signal has generated a profit of +6.23% for investors in the last three months.


SINA has been underperforming the SP500 index in recent time, after having outperformed till 3 Oct, 2017. Over the last 2 years 11 months and 9 days, SINA underperformed the SP500 index on 48% days. Which indicates that on days SINA underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months SINA was mostly loss making and delivered on average -0.06% per day. It's best return during this period (of +7.67%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -6.34%) was on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -13.28% losses to investors. This was followed by a bullish trend that started on 13 Nov, 2018 and ended on 16 Nov, 2018. This bullish trend delivered +6.23% to investors.

SINA had 2 profitable and 10 loss making months over the last year. During the last year, SINA underperformed SP500 index on monthly return basis. SINA was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -11.83% compared to -7.28% returned by SP500 index in Oct 2018. SINA had a longer winning streak of losing months than SP500 index. It went down in 9 straight months (from Feb 2018 to Oct 2018) during which period it delivered -54.57%. It is interesting to note that both SINA and SP500 index significantly outperform during months when quarterly/annual results are announced.

The Stock Market is designed to transfer money from the Active to the Patient.
-- Warren Buffett

SINA 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 SINA's volatility from 3 Oct, 2018 to 1 Nov, 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 SINA has significant negative skewness in it's return distribution. This indicates that SINA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SINA you may find it interesting to know that AMD, TWTR and LULU are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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