SOUTHWEST GAS HOLDINGS, INC. is a falling knife that can bleed you if you catch it on Monday. It returned -2.46% to close at 80.66. On a day when the overall market breadth was 34%, it closed higher than 10% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
SWX is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for SWX's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -1.24%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to SWX.
During the last three months SWX delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.51%) was on Friday, 30 Nov, 2018. While it's worst loss in the same period (of -7.73%) was on Tuesday, 27 Nov, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -3.71% losses to investors. This was followed by a bullish trend that started on 2 Oct, 2018 and ended on 8 Oct, 2018. This bullish trend delivered +4.47% to investors.
On monthly basis, SWX delivered profits in more months over the last year, than losses. SWX delivered profits less regularly than SP500 index. SWX was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -10.46% compared to -7.28% returned by SP500 index in Oct 2018. SWX had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand
SWX 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 SWX's volatility from 18 Sep, 2018 to 30 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 SWX has significant positive skewness in it's return distribution. This indicates that investors can expect SWX to recover from drawdowns quickly. Which makes SWX a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Based on your interest in SWX you may find it interesting to know that AMD is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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