Computers has destroyed investor wealth on Tuesday. It returned +0.52% to close at 1097.74. On a day when the overall market breadth was 34%, it closed higher than 71% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.
~COMPUTERS is currently in a down trend. The current bearish signal has generated a profit of +15.56% for investors in the last three months.
~COMPUTERS has been underperforming the SP500 index in recent time, after having outperformed till 20 Mar, 2018. Over the last 1 year and 9 months, ~COMPUTERS outperformed the SP500 index on 58% days.
During the last three months ~COMPUTERS was mostly loss making and delivered on average -0.3% per day. It's best return during this period (of +2.62%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.66%) was on Wednesday, 24 Oct, 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 +1.35% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -8.54% of investor capital.
On monthly basis, ~COMPUTERS delivered profits and losses in equal number of months. ~COMPUTERS delivered profits less regularly than SP500 index. ~COMPUTERS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -10.85% compared to -7.75% returned by SP500 index in Dec 2018. ~COMPUTERS had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -20.12%. It is interesting to note that both ~COMPUTERS and SP500 index significantly outperform during months when quarterly/annual results are announced.
I made my money the old-fashioned way. I was very nice to a wealthy relative right before he died.
-- Malcolm Forbes
~COMPUTERS 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 ~COMPUTERS's volatility from 27 Sep, 2018 to 31 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 ~COMPUTERS has significant positive skewness in it's return distribution. This indicates that investors can expect ~COMPUTERS to recover from drawdowns quickly. Which makes ~COMPUTERS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
~COMPUTERS has more chance of extreme outcomes than the SP500 index. Therefore, ~COMPUTERS must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ~COMPUTERS.
On a general note (since you are interested in ~COMPUTERS), three small cap instruments that deserve special mention are KEYS, BURL and ZBRA. They have all outperformed the market and must be closely watched for investment opportunities.
... 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