13.04 +0.02 (+0.15%) Sell

Joy for VALE investors as it ranks better than it's peers but, has not managed to breakout

13 min read

VALE S.A. (Foreign) managed to outperform the broader market today. It surged by +0.15% to close at 13.04. It's recent 5 day performance has been +0.08%, +1.17%, -2.13%, -2.88% and -0.51%.

[Themes containing VALE]

VALE is currently in a bearish trend. The current bearish signal has generated a profit of +1.66% for investors in the last three months.


VALE has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 Feb, 2016 to 17 Oct, 2018. Over the last 2 years 11 months and 9 days, VALE outperformed the SP500 index on 54% days.

VALE was profitable on 53% days in the last three months. During this time, it delivered on average +0.01% per day. It delivered it's worst daily return of -7.6%, during this period, on Friday, 23 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 14 Sep, 2018 and went on till 21 Sep, 2018. This bullish trend returned +13.0% to investors.

During the last year VALE had 6 profitable months and 6 loss making months. VALE returned profits in fewer months than SP500 index. VALE significantly outperformed SP500 index in Jul 2018, when it returned +17.37% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. VALE had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both VALE and SP500 index significantly outperform during months when quarterly/annual results are announced.

Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.
-- Johann Wolfgang von Goethe

VALE 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 VALE's volatility from 17 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

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

Investors trading in VALE derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in VALE), EHC is a small cap that deserves to be closely tracked for investment opportunities.

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