Entertainment THEME

1414.56 -13.14 (-0.93%) Sell

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

14 min read

~ENTERTAINMENT was among the worst performers today. On a longer term basis, investors in Entertainment made +0.06% per day. Tuesday's performance of -0.93% was a significant underperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~ENTERTAINMENT experienced a maximum drawdown of -18.94% over the last three months. It returned -16.39% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +13.77%.

Trend

~ENTERTAINMENT has been outperforming the SP500 index in recent time. Over the last 2 years and 8 months, ~ENTERTAINMENT outperformed the SP500 index on 53% days.

During the last three months ~ENTERTAINMENT was mostly loss making and delivered on average -0.27% per day. It's best return during this period (of +3.91%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -4.7%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -12.67% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +7.94% to investors.

On monthly basis, ~ENTERTAINMENT delivered profits and losses in equal number of months. ~ENTERTAINMENT delivered profits less regularly than SP500 index. ~ENTERTAINMENT was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.39% compared to -7.75% returned by SP500 index in Dec 2018. ~ENTERTAINMENT 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 ~ENTERTAINMENT and SP500 index significantly outperform during months when quarterly/annual results are announced.

But having said that, what's happening with campaign finance reform and our political culture is devastating.
-- Robert McChesney

~ENTERTAINMENT 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 ~ENTERTAINMENT's volatility from 27 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 ~ENTERTAINMENT has significant positive skewness in it's return distribution. This indicates that investors can expect ~ENTERTAINMENT to recover from drawdowns quickly. Which makes ~ENTERTAINMENT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~ENTERTAINMENT), ABMD is a mid cap that deserves to be closely tracked for investment opportunities.

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