TEXAS ROADHOUSE, INC. delivered good returns today. It grew by +1.57% to close at 62.07. During the last week it lost -1.65% and saw a maximum drawdown of -3.17% before bouncing back.
Buy-and-Hold investors in TXRH experienced a maximum drawdown of -15.64% over the last three months. It lost -13.39% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +0.7%.
During the last three months TXRH was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +3.62%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -6.44%) was on Tuesday, 30 Oct, 2018. There was initially a bullish trend during this period which started on 4 Oct, 2018 and went on till 9 Oct, 2018. The bullish trend returned +2.91% to investors. This was followed by a bearish trend that started on 26 Oct, 2018 and ended on 31 Oct, 2018. This bearish trend lost -11.01% of investor capital.
TXRH had 7 profitable and 5 loss making months over the last year. During the last year, TXRH underperformed SP500 index on monthly return basis. TXRH significantly outperformed SP500 index in Apr 2018, when it returned +11.95% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TXRH had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.
If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.
-- John Bogle
TXRH 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 TXRH's volatility from 28 Sep, 2018 to 1 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 TXRH 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.
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