YANDEX N.V. (FOREIGN)

28.01 +0.11 (+0.39%) Sell

YNDX does a dead cat bounce, it's still too early to buy into it

13 min read

YANDEX N.V. (Foreign) ranked among the best performers on Friday. It delivered +0.39% to close at 28.01. It is currently trading -35% below it's 52 week high of 43.75.

[Themes containing YNDX]

YNDX showed a bearish trend over the last 3 months. During this period YNDX fell by -9.91% and saw a maximum drawdown of -28.07%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in YNDX till volatility reduces and a clear trend emerges.

Trend

YNDX has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Jan, 2016 to 21 Feb, 2018. Over the last 2 years 11 months and 10 days, YNDX outperformed the SP500 index on 52% days.

During the last three months YNDX delivered profits on 52% days. However, it still managed to end this period in a loss. It's best return during this period (of +9.33%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -17.81%) was on Thursday, 18 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 17 Sep, 2018 and went on till 24 Sep, 2018. This bullish trend returned +7.45% to investors.

During the last year YNDX had 5 profitable months and 7 loss making months. YNDX returned profits in fewer months than SP500 index. YNDX significantly outperformed SP500 index in Jan 2018, when it returned +15.13% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. YNDX had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -14.35%.

Finance, like time, devours its own children.
-- Honore de Balzac

YNDX 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 YNDX's volatility from 28 Sep, 2018 to 18 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Investors trading in YNDX 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 YNDX. Therefore, SP500 must receive a lower allocation than YNDX in your portfolio.

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

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