2U, INC.

56.7 -0.87 (-1.53%) Sell

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

13 min read

2U, INC. is a falling knife that can bleed you if you catch it today. It delivered -1.53% to close at 56.7. It's recent 5 day performance has been +1.44%, -1.03%, -1.78%, +0.95% and +1.47%.

[Themes containing TWOU]

TWOU showed a strong bearish trend over the last 3 months. During this period TWOU delivered -33.39% and saw a maximum drawdown of -41.67%. There was a short signal during this period which returned +33.39%.


TWOU has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 10 Feb, 2016 to 11 May, 2018. Over the last 2 years 11 months and 3 days, TWOU outperformed the SP500 index on 54% days.

During the last three months TWOU was mostly loss making and delivered on average -0.58% per day. It's best return during this period (of +7.91%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -15.58%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -15.07% of investor capital.

The last 12 months saw TWOU's investors making profits in 5 months and incurring losses in 7 months. TWOU was less consistent in delivering monthly returs than SP500 index. TWOU significantly outperformed SP500 index in Aug 2018, when it returned +18.11% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TWOU 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 -41.24%.

"Derivatives are financial weapons of mass destruction.

TWOU 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 TWOU's volatility from 11 Sep, 2018 to 7 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that TWOU 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 TWOU. Therefore, SP500 must receive a lower allocation than TWOU in your portfolio. SP500 index usually has shorter drawdown period than TWOU.

Based on your interest in TWOU you may find it interesting to know that EHC, AAXN and BURL are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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