TECK RESOURCES LTD (Foreign) delivered stellar performance today. It gained +4.09% to close at 21.89. It's recent 5 day performance has been -1.96%, +0.28%, -1.52%, +1.73% and +5.17%.
TECK is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for TECK's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -5.52%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to TECK.
TECK returned losses on 55% days in the last three months. During this time, it delivered on average -0.05% per day. It delivered it's worst daily return of -7.45%, during this period, on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 13 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +9.86% to investors. This was followed by a bearish trend that started on 23 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -22.27% of investor capital.
On monthly basis, TECK delivered losses in more months over the last year, than profits. TECK delivered profits less regularly than SP500 index. TECK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -17.05% compared to -7.28% returned by SP500 index in Oct 2018. TECK had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -12.63%. It is interesting to note that both TECK and SP500 index significantly outperform during months when quarterly/annual results are announced.
Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.
-- Johann Wolfgang von Goethe
TECK 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 TECK's volatility from 17 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that TECK 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.
Investors trading in TECK derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.
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