166.56 -6.07 (-3.64%) Sell

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

13 min read

STRYKER CORP significantly underperformed on Friday. It lost -3.64% to close at 166.56. It is currently trading +12% above it's 52 week low of 148.01 and is down only -7% from it's 52 week high.

[Themes containing SYK]

SYK is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for SYK's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -1.95%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to SYK.


SYK has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, SYK outperformed the SP500 index on 57% days.

During the last three months SYK delivered profits on 52% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.36%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.64%) was on Friday, 14 Dec, 2018. There was initially a bearish trend during this period which started on 18 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -7.61% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +3.82% to investors.

SYK had 6 profitable and 6 loss making months over the last year. During the last year, SYK underperformed SP500 index on monthly return basis. SYK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.2% compared to -7.28% returned by SP500 index in Oct 2018. SYK had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

SYK is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in SYK's volatility from 27 Sep, 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 SYK has significant positive skewness in it's return distribution. This indicates that investors can expect SYK to recover from drawdowns quickly. Which makes SYK 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 SYK. Therefore, SP500 must receive a lower allocation than SYK in your portfolio. SP500 index usually has shorter drawdown period than SYK.

On a general note (since you are interested in SYK), three instruments that deserve special mention are TNDM, NFEC and NIHD. They have all outperformed the market and must be closely watched for investment opportunities.

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