Addictions THEME

1152.22 -22.75 (-1.97%) Sell

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

14 min read

Addictions was among the worst performers today. It lost -1.97% to close at 1152.22. During the last week it lost -3.16% and saw a maximum drawdown of -3.51% before bouncing back.

[Theme constituents]

~ADDICTIONS is currently in a down trend. The current bearish signal has generated a profit of +9.18% for investors in the last three months.


~ADDICTIONS has been underperforming the SP500 index in recent time, after having outperformed till 6 Jun, 2017. Over the last 2 years 11 months and 10 days, ~ADDICTIONS underperformed the SP500 index on 45% days. Which indicates that on days ~ADDICTIONS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~ADDICTIONS was mostly loss making and delivered on average -0.2% per day. It's best return during this period (of +1.93%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -3.03%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +1.27% to investors. This was followed by a bearish trend that started on 8 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -3.62% of investor capital.

~ADDICTIONS had 3 profitable and 9 loss making months over the last year. During the last year, ~ADDICTIONS underperformed SP500 index on monthly return basis. ~ADDICTIONS was also a less risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -5.78% compared to -7.28% returned by SP500 index in Oct 2018. ~ADDICTIONS had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -10.03%. It is interesting to note that both ~ADDICTIONS and SP500 index significantly outperform during months when quarterly/annual results are announced.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Phillip Fisher

~ADDICTIONS is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~ADDICTIONS's volatility from 19 Sep, 2018 to 4 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~ADDICTIONS has significant positive skewness in it's return distribution. This indicates that investors can expect ~ADDICTIONS to recover from drawdowns quickly. Which makes ~ADDICTIONS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~ADDICTIONS you may find it interesting to know that ~REITS has delivered similar performance as ~ADDICTIONS and can be considered as an alternative investment candidate (to ~ADDICTIONS).

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