42.33 +0.01 (+0.02%) Sell

TNET shows sign of weakness as investors do cost averaging

13 min read

TRINET GROUP INC is looking better than most other alternatives today. It grew by +0.02% to close at 42.33. During the last week it lost -1.08% and saw a maximum drawdown of -3.23% before bouncing back.

[Themes containing TNET]

TNET is currently in a down trend. The current bearish signal has generated a profit of +22.4% for investors in the last three months.


TNET has been underperforming the SP500 index in recent time, after having outperformed till 24 Aug, 2018. Over the last 2 years 11 months and 7 days, TNET outperformed the SP500 index on 53% days.

During the last three months TNET was mostly loss making and delivered on average -0.38% per day. It's best return during this period (of +5.81%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -7.34%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 20 Sep, 2018 and went on till 26 Sep, 2018. The bullish trend returned +6.35% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -7.14% of investor capital.

TNET had 6 profitable and 6 loss making months over the last year. During the last year, TNET underperformed SP500 index on monthly return basis. TNET was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.04% compared to -7.28% returned by SP500 index in Oct 2018. TNET had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -29.8%.

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
-- Norman Vincent Peale

TNET 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 TNET's volatility from 18 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 TNET has significant positive skewness in it's return distribution. This indicates that investors can expect TNET to recover from drawdowns quickly. Which makes TNET 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 TNET. Therefore, SP500 must receive a lower allocation than TNET in your portfolio. TNET usually has shorter drawdown period than the SP500 index.

Based on your interest in TNET you may find it interesting to know that NIHD, TPNL and I have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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