WEYERHAEUSER CO is a falling knife that can bleed you if you catch it on Thursday. It fell by -0.89% to close at 24.5 which is it's 52 week low, down -36% from it's 52 week high.
WY showed a strong bearish trend over the last 3 months. During this period WY fell by -27.88% and saw a maximum drawdown of -27.88%. There was a short signal during this period which returned +27.17%.
WY has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 29 Apr, 2016 to 4 Dec, 2018. Over the last 2 years 11 months and 9 days, WY underperformed the SP500 index on 51% days.
During the last three months WY was mostly loss making and delivered on average -0.5% per day. It's best return during this period (of +6.45%) was on Thursday, 6 Dec, 2018. While it's worst loss in the same period (of -8.5%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 9 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -9.46% of investor capital.
During the last year WY had 4 profitable months and 8 loss making months. WY returned profits in fewer months than SP500 index. WY was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.44% compared to -7.28% returned by SP500 index in Oct 2018. WY had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -31.53%. It is interesting to note that both WY and SP500 index significantly outperform during months when quarterly/annual results are announced.
Fortune sides with him who dares.
WY 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 WY's volatility from 18 Sep, 2018 to 7 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 WY has significant positive skewness in it's return distribution. This indicates that investors can expect WY to recover from drawdowns quickly. Which makes WY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in WY derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
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