88.23 -4.55 (-5.16%) Buy

Search for alternative investments is on for UAL investors as it shows weakness

13 min read

UNITED CONTINENTAL HOLDINGS, INC. was among the worst performers on Friday. It fell by -5.16% to close at 88.23. On a day when the overall market breadth was 35%, it closed higher than 7% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing UAL]

UAL is currently in a bullish trend. The previous long signal in UAL has not been profitable for investors in general. If you are invested in UAL at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


UAL has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Jul, 2016 to 23 Nov, 2018. Over the last 2 years 11 months and 3 days, UAL outperformed the SP500 index on 52% days.

UAL was profitable on 53% days in the last three months. During this time, it delivered on average +0.02% per day. It delivered it's best daily return of +5.95%, during this period, on Wednesday, 17 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 1 Nov, 2018 and went on till 8 Nov, 2018. This bullish trend returned +8.01% to investors.

During the last year UAL had 8 profitable months and 4 loss making months. Profitable number of months of UAL and SP500 index were the same. UAL significantly outperformed SP500 index in Jul 2018, when it returned +13.37% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. UAL had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Mar 2018 to Sep 2018) during which period it delivered +30.85%.

You can only become truly accomplished at something you love. Don't make money your goal. Instead, pursue the things you love doing, and then do them so well that people can't take their eyes off you.
-- Maya Angelou

UAL is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in UAL's volatility from 10 Sep, 2018 to 25 Oct, 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 UAL has significant positive skewness in it's return distribution. This indicates that investors can expect UAL to recover from drawdowns quickly. Which makes UAL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in UAL derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in UAL you may find it interesting to know that TWTR is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter