CIMAREX ENERGY CO

71.48 -1.31 (-1.83%) Sell

XEC is a falling knife, continues to bleed every investor trying to catch it

13 min read

CIMAREX ENERGY CO delivered massive losses today. It lost -1.83% to close at 71.48. During the last week it lost -4.97% and saw a maximum drawdown of -4.97%.

[Themes containing XEC]

XEC is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +8.52% for investors.

Trend

XEC has been underperforming the SP500 index in recent time, after having outperformed till 10 Oct, 2016. XEC is currently at it's worst performance to the SP500 index and therefore does not make a good investment candidate. Over the last 2 years 11 months and 9 days, XEC underperformed the SP500 index on 50% days. Which indicates that on days XEC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

XEC returned losses on 59% days in the last three months. During this time, it delivered on average -0.35% per day. It delivered it's best daily return of +12.07%, during this period, on Wednesday, 7 Nov, 2018. There was initially a bullish trend during this period which started on 1 Oct, 2018 and went on till 3 Oct, 2018. The bullish trend returned +5.9% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -16.25% of investor capital.

XEC had 5 profitable and 7 loss making months over the last year. During the last year, XEC underperformed SP500 index on monthly return basis. XEC was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.74% compared to -7.28% returned by SP500 index in Oct 2018. XEC had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -27.66%. It is interesting to note that both XEC and SP500 index significantly outperform during months when quarterly/annual results are announced.

Many folks think they aren't good at earning money, when what they don't know is how to use it.
-- Frank A. Clark

XEC is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in XEC's volatility from 28 Sep, 2018 to 20 Nov, 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 XEC 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.

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

Based on your interest in XEC you may find it interesting to know that ZBRA is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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