Energy-Alternate Sources THEME

1202.22 -16.6 (-1.38%) Sell

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Don't invest in ENERGYALTS THEME now, it is an investor's nightmare

14 min read

Energy-Alternate Sources is a falling knife that can bleed you if you catch it on Tuesday. It fell by -1.38% to close at 1202.22. On a day when the overall market breadth was 34%, it closed higher than 73% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

~ENERGYALTS showed a strong bearish trend over the last 3 months. During this period ~ENERGYALTS fell by -13.12% and saw a maximum drawdown of -14.42%. There were 5 short signals during this period that returned a cumulative of +2.55% to investors.


~ENERGYALTS has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 8 Mar, 2017 to 21 May, 2018. Over the last 2 years 2 months and 6 days, ~ENERGYALTS outperformed the SP500 index on 51% days.

During the last three months ~ENERGYALTS was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +3.3%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.58%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -7.71% of investor capital.

During the last year ~ENERGYALTS had 7 profitable months and 5 loss making months. ~ENERGYALTS returned profits in fewer months than SP500 index. ~ENERGYALTS was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -9.01% compared to -7.75% returned by SP500 index in Dec 2018. ~ENERGYALTS had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Many folks think they aren't good at earning money, when what they don't know is how to use it.
-- Frank A. Clark

~ENERGYALTS 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 ~ENERGYALTS's volatility from 19 Sep, 2018 to 30 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 ~ENERGYALTS has significant positive skewness in it's return distribution. This indicates that investors can expect ~ENERGYALTS to recover from drawdowns quickly. Which makes ~ENERGYALTS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~ENERGYALTS you may find it interesting to know that HTBI, G and SAFT have all performed similar to ~ENERGYALTS and qualify as alternative investment candidates that must be evaluated for diversification.

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