SYSTEMAX INC

30.2 -0.57 (-1.88%) Sell

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

13 min read

SYSTEMAX INC ranked among the worst performers on Friday. It delivered -1.88% to close at 30.2. On a day when the overall market breadth was 35%, it closed higher than 14% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing SYX]

SYX is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +5.41% for investors.

Trend

SYX has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 24 Mar, 2017 to 23 Jul, 2018. Over the last 2 years 11 months and 10 days, SYX outperformed the SP500 index on 49% days. Which indicates that on days SYX outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months SYX was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +22.85%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.5%) was on Monday, 5 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -12.47% of investor capital.

The last 12 months saw SYX's investors making profits in 5 months and incurring losses in 7 months. SYX was less consistent in delivering monthly returs than SP500 index. SYX significantly outperformed SP500 index in Jul 2018, when it returned +27.37% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SYX had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both SYX and SP500 index significantly outperform during months when quarterly/annual results are announced.

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SYX is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in SYX's volatility from 20 Sep, 2018 to 31 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 SYX has significant negative skewness in it's return distribution. This indicates that SYX is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SYX you may find it interesting to know that STNG has delivered similar performance as SYX and can be considered as an alternative investment candidate (to SYX).

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