Apparel THEME

1329.35 +8.64 (+0.65%) Sell

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

14 min read

Apparel ranked among the worst performers today. It delivered +0.65% to close at 1329.35. It's recent 5 day performance has been -1.62%, -0.66%, -3.63%, +0.48% and -0.25%.

[Theme constituents]

~APPAREL is currently in a bearish trend. The current bearish signal has generated a profit of +11.98% for investors in the last three months.


~APPAREL has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 24 May, 2017 to 19 Jul, 2018. Over the last 1 year 9 months and 2 days, ~APPAREL outperformed the SP500 index on 53% days.

During the last three months ~APPAREL was mostly loss making and delivered on average -0.22% per day. It's best return during this period (of +4.63%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.62%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -9.9% of investor capital.

During the last year ~APPAREL had 7 profitable months and 5 loss making months. ~APPAREL returned profits in fewer months than SP500 index. ~APPAREL was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -11.67% compared to -7.75% returned by SP500 index in Dec 2018. ~APPAREL had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"There is no one-decision stocks

~APPAREL 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 ~APPAREL's volatility from 25 Sep, 2018 to 7 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 ~APPAREL has significant positive skewness in it's return distribution. This indicates that investors can expect ~APPAREL to recover from drawdowns quickly. Which makes ~APPAREL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~APPAREL you may find it interesting to know that I has shown remarkable performance this year and deserves to be on every investors' watchlist.

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