SLEEP NUMBER CORP

33.0 -1.7 (-5.15%) Sell

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

13 min read

SLEEP NUMBER CORP is a falling knife that can bleed you if you catch it on Friday. It delivered -5.15% to close at 33.0. On a day when the overall market breadth was 35%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing SNBR]

SNBR is currently in a bearish trend. The previous short signal in SNBR has not been profitable for investors in general. If you are short on SNBR at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

SNBR has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 7 Feb, 2017 to 8 Nov, 2018. Over the last 2 years 11 months and 10 days, SNBR outperformed the SP500 index on 52% days.

During the last three months SNBR was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +18.29%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -7.3%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -13.98% of investor capital.

The last 12 months saw SNBR's investors making profits in 6 months and incurring losses in 6 months. SNBR was less consistent in delivering monthly returs than SP500 index. SNBR significantly outperformed SP500 index in Aug 2018, when it returned +18.29% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SNBR had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"After two decades of personal finance reporting, I've heard every excuse in the book for not saving money. That said, none of them really hold up - at least over the long term.

SNBR 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 SNBR's volatility from 8 Oct, 2018 to 26 Oct, 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 SNBR 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.

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

Based on your interest in SNBR you may find it interesting to know that NVCN is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to NVCN or sufficiently diversifying your portfolio.

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