SLAB is a falling knife, continues to bleed every investor trying to catch it
17 Dec, 201813 min read
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SLAB was among the worst performers today. On a longer term basis, investors in SILICON LABORATORIES INC made -0.02% per day. Monday's performance of -2.65% was a underperformance compared to it's daily average.
Buy-and-Hold investors in SLAB experienced a maximum drawdown of -18.93% over the last three months. It delivered -15.24% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +15.24% for investors.
SLAB has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 11 Feb, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 10 days, SLAB outperformed the SP500 index on 54% days.
SLAB was profitable on 51% days in the last three months. During this time, it delivered on average -0.24% per day. It delivered it's best daily return of +5.53%, during this period, on Thursday, 1 Nov, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +6.62%) started on 12 Oct, 2018 and went on till 17 Oct, 2018 while the bearish trend (which returned -8.39%) started on 3 Oct, 2018 and went on till 8 Oct, 2018.
The last 12 months saw SLAB's investors making profits in 5 months and incurring losses in 7 months. SLAB was less consistent in delivering monthly returs than SP500 index. SLAB significantly outperformed SP500 index in May 2018, when it returned +13.67% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SLAB had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both SLAB and SP500 index significantly outperform during months when quarterly/annual results are announced.
If all the economists were laid end to end, they'd never reach a conclusion.
-- George Bernard Shaw
SLAB 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 SLAB's volatility from 20 Sep, 2018 to 29 Oct, 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 SLAB has significant positive skewness in it's return distribution. This indicates that investors can expect SLAB to recover from drawdowns quickly. Which makes SLAB 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 SLAB. Therefore, SP500 must receive a lower allocation than SLAB in your portfolio. SP500 index usually has shorter drawdown period than SLAB.
On a general note (since you are interested in SLAB), three instruments that deserve special mention are HEAR, TNDM and I. They have all outperformed the market and must be closely watched for investment opportunities.
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