Electric THEME

1072.74 -9.86 (-0.92%) Buy

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ELECTRIC THEME investors treading cautiously as performance is muted

14 min read

Electric significantly underperformed on Tuesday. It lost -0.92% to close at 1072.74. On a day when the overall market breadth was 34%, it closed higher than 69% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

~ELECTRIC is currently in a up trend. The previous long signal in ~ELECTRIC has not been profitable for investors in general. If you are invested in ~ELECTRIC at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


~ELECTRIC has been outperforming the SP500 index in recent time. Over the last 2 years 2 months and 1 days, ~ELECTRIC underperformed the SP500 index on 48% days. Which indicates that on days ~ELECTRIC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~ELECTRIC was mostly profitable and delivered on average +0.03% per day. It's best return during this period (of +2.96%) was on Friday, 16 Nov, 2018. While it's worst loss in the same period (of -3.07%) was on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -3.13% losses to investors. This was followed by a bullish trend that started on 15 Oct, 2018 and ended on 19 Oct, 2018. This bullish trend delivered +3.48% to investors.

~ELECTRIC had 7 profitable and 5 loss making months over the last year. During the last year, ~ELECTRIC underperformed SP500 index on monthly return basis. ~ELECTRIC was also a less risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -5.13% compared to -7.75% returned by SP500 index in Dec 2018. ~ELECTRIC had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ~ELECTRIC and SP500 index significantly outperform during months when quarterly/annual results are announced.

Making money from enforcing patents is no more wrong than investing in preferred stock.
-- Nathan Myhrvold

~ELECTRIC 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 fall in ~ELECTRIC's volatility from 19 Sep, 2018 to 11 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 ~ELECTRIC has significant positive skewness in it's return distribution. This indicates that investors can expect ~ELECTRIC to recover from drawdowns quickly. Which makes ~ELECTRIC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~ELECTRIC), three small cap instruments that deserve special mention are AAXN, PTC and BURL. They have all outperformed the market and must be closely watched for investment opportunities.

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