Cloud Computing THEME

1091.36 +17.78 (+1.63%) Sell

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

14 min read

Cloud Computing has destroyed investor wealth today. It returned +1.63% to close at 1091.36. It's recent 5 day performance has been -4.28%, -1.9%, -1.6%, +0.59% and +0.73%.

[Theme constituents]

~CLOUDCOMPUTING showed a strong down trend over the last 3 months. During this period ~CLOUDCOMPUTING returned -14.48% and saw a maximum drawdown of -16.65%. There were 3 short signals during this period that returned a cumulative of +8.33% to investors.


~CLOUDCOMPUTING has been underperforming the SP500 index in recent time, after having outperformed till 20 Jul, 2018. Over the last 1 year 2 months and 12 days, ~CLOUDCOMPUTING outperformed the SP500 index on 59% days.

During the last three months ~CLOUDCOMPUTING was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +3.32%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -4.28%) was on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -9.9% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +11.04% to investors.

On monthly basis, ~CLOUDCOMPUTING delivered profits in more months over the last year, than losses. ~CLOUDCOMPUTING delivered profits less regularly than SP500 index. ~CLOUDCOMPUTING was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -10.26% compared to -7.75% returned by SP500 index in Dec 2018. ~CLOUDCOMPUTING had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.
-- Jeroen Dijsselbloem

~CLOUDCOMPUTING 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 ~CLOUDCOMPUTING's volatility from 19 Sep, 2018 to 1 Nov, 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 ~CLOUDCOMPUTING has significant positive skewness in it's return distribution. This indicates that investors can expect ~CLOUDCOMPUTING to recover from drawdowns quickly. Which makes ~CLOUDCOMPUTING a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~CLOUDCOMPUTING), two instruments that have delivered similar performance as ~CLOUDCOMPUTING are ABM and HPP. They are suitable as good alternative investment candidates that can diversify your portfolio.

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