US BANCORP is a falling knife that can bleed you if you catch it on Friday. It fell by -0.89% to close at 48.75 which is it's 52 week low, down -16% from it's 52 week high.
USB is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +3.84% for investors.
USB has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Mar, 2017 to 2 Oct, 2018. Over the last 2 years 11 months and 10 days, USB underperformed the SP500 index on 46% days. Which indicates that on days USB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
USB returned losses on 58% days in the last three months. During this time, it delivered on average -0.16% per day. It delivered it's best daily return of +3.79%, during this period, on Wednesday, 17 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 21 Sep, 2018 and ended on 28 Sep, 2018. This bearish trend lost -4.68% of investor capital.
During the last year USB had 6 profitable months and 6 loss making months. USB returned profits in fewer months than SP500 index. USB was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -10.48% compared to -7.28% returned by SP500 index in Oct 2018. USB had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both USB and SP500 index significantly outperform during months when quarterly/annual results are announced.
Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.
-- Jim Rogers
USB 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 USB's volatility from 17 Sep, 2018 to 11 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that USB has significant positive skewness in it's return distribution. This indicates that investors can expect USB to recover from drawdowns quickly. Which makes USB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in USB derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.
Based on your interest in USB 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.
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