33.08 -0.46 (-1.4%) Sell

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

13 min read

TRMB delivered massive losses today. On a longer term basis, investors in TRIMBLE INC. made 0.0% per day. Tuesday's performance of -1.4% was a underperformance compared to it's daily average.

[Themes containing TRMB]

TRMB showed a strong bearish trend over the last 3 months. During this period TRMB delivered -24.15% and saw a maximum drawdown of -24.32%. There were 2 short signals during this period that returned a cumulative of +4.66% to investors.


TRMB has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 29 Jan, 2016 to 27 Oct, 2017. Over the last 2 years 11 months and 14 days, TRMB outperformed the SP500 index on 53% days.

During the last three months TRMB was mostly loss making and delivered on average -0.42% per day. It's best return during this period (of +4.21%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -5.56%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 1 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -5.4% of investor capital.

The last 12 months saw TRMB's investors making profits in 5 months and incurring losses in 7 months. TRMB was less consistent in delivering monthly returs than SP500 index. TRMB significantly outperformed SP500 index in Aug 2018, when it returned +19.26% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TRMB had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -25.43%. It is interesting to note that both TRMB and SP500 index significantly outperform during months when quarterly/annual results are announced.

Some of the people in finance touch enormous parts of the economy.
-- Stephen A. Schwarzman

TRMB is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in TRMB's volatility from 20 Sep, 2018 to 5 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that TRMB 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.

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

Based on your interest in TRMB you may find it interesting to know that RHT, LULU and SQ are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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