WEC ENERGY GROUP, INC. ranked among the best performers on Tuesday. It delivered +0.62% to close at 74.89. On a day when the overall market breadth was 35%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.
WEC showed a bullish trend over the last 3 months. During this period WEC delivered +9.01% and saw a maximum drawdown of -6.52%. There were 3 long signals during this period that returned a cumulative of +1.83% to investors.
WEC has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jun, 2016 to 11 Jun, 2018. Over the last 2 years 11 months and 7 days, WEC outperformed the SP500 index on 52% days.
During the last three months WEC was mostly profitable and delivered on average +0.14% per day. It's best return during this period (of +2.5%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -2.41%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 29 Nov, 2018 and went on till 11 Dec, 2018. This bullish trend returned +5.83% to investors.
During the last year WEC had 8 profitable months and 4 loss making months. Profitable number of months of WEC and SP500 index were the same. WEC was also a less risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -6.81% compared to -7.28% returned by SP500 index in Oct 2018. WEC 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 WEC and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Buy not on optimism, but on arithmetic.
WEC 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 WEC's volatility from 12 Sep, 2018 to 31 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 WEC has significant positive skewness in it's return distribution. This indicates that investors can expect WEC to recover from drawdowns quickly. Which makes WEC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
WEC has more chance of extreme outcomes than the SP500 index. Therefore, WEC must receive a lower allocation than SP500 in your portfolio. WEC usually has shorter drawdown period than the SP500 index.
On a general note (since you are interested in WEC), three mid cap instruments that deserve special mention are ABMD, SQ and TWTR. They have all outperformed the market and must be closely watched for investment opportunities.
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