WHR investors herd to book profits while the going is good

WHIRLPOOL CORP significantly underperformed today. It delivered -1.04% to close at 115.43. During the last week it delivered -4.61% and saw a maximum drawdown of -5.03% before bouncing back.

[Themes containing WHR]

WHR is currently in a bullish trend. The current bullish signal has generated a profit of +3.74% for WHR's investors in the last three months.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

WHR has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 18 Apr, 2016 to 9 Oct, 2018. Over the last 2 years 11 months and 7 days, WHR underperformed the SP500 index on 48% days. Which indicates that on days WHR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

WHR returned losses on 58% days in the last three months. During this time, it delivered on average -0.09% per day. It delivered it's best daily return of +6.78%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 10 losing days, which started on 24 Sep, 2018 and ended on 5 Oct, 2018. This bearish trend lost -10.31% of investor capital.

The last 12 months saw WHR's investors making profits in 4 months and incurring losses in 8 months. WHR was less consistent in delivering monthly returs than SP500 index. WHR significantly outperformed SP500 index in Nov 2018, when it returned +14.91% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WHR had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -27.88%. It is interesting to note that both WHR and SP500 index significantly outperform during months when quarterly/annual results are announced.

It is time for us to stand and cheer for the doer, the achiever, the one who recognizes the challenge and does something about it.
-- Vince Lombardi

WHR 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 WHR's volatility from 13 Sep, 2018 to 30 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 WHR has significant positive skewness in it's return distribution. This indicates that investors can expect WHR to recover from drawdowns quickly. Which makes WHR a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in WHR derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in WHR), three instruments that deserve special mention are AMRH, APRN and DLPH. They have all outperformed the market and must be closely watched for investment opportunities.