Bank THEME

1127.79 -0.72 (-0.06%) Sell

Optimize theme

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

14 min read

Bank has destroyed investor wealth today. It fell by -0.06% to close at 1127.79. It's recent 5 day performance has been -0.92%, -1.02%, -0.36%, +1.21% and -0.83%.

[Theme constituents]

~BANK is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +11.55% for investors.

Trend

~BANK has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Feb, 2018 to 11 Dec, 2018. Over the last 2 years 11 months and 14 days, ~BANK underperformed the SP500 index on 50% days. Which indicates that on days ~BANK underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~BANK was mostly loss making and delivered on average -0.26% per day. It's best return during this period (of +1.72%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -3.29%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 29 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +5.87% to investors.

During the last year ~BANK had 4 profitable months and 8 loss making months. ~BANK returned profits in fewer months than SP500 index. ~BANK was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -8.64% compared to -7.75% returned by SP500 index in Dec 2018. ~BANK had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -9.58%. It is interesting to note that both ~BANK and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Money is like manure. You have to spread it around or it smells.

~BANK 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 fall in ~BANK's volatility from 19 Sep, 2018 to 8 Oct, 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 ~BANK has significant positive skewness in it's return distribution. This indicates that investors can expect ~BANK to recover from drawdowns quickly. Which makes ~BANK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~BANK you may find it interesting to know that ZBRA, BURL and AAXN are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter