Frack Attack THEME

585.917 -13.55 (-2.31%) Sell

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Don't buy FRACKING THEME now, it is a volatile investment

14 min read

Frack Attack significantly underperformed on Tuesday. It returned -2.31% to close at 585.917. It is currently trading -52% below it's 52 week high of 1229.5.

[Theme constituents]

~FRACKING showed a strong down trend over the last 3 months. During this period ~FRACKING returned -39.77% and saw a maximum drawdown of -41.61%. There were 3 short signals during this period that returned a cumulative of +38.35% to investors.

Trend

~FRACKING has been underperforming the SP500 index in recent time, after having outperformed till 11 Jan, 2018. Over the last 1 year 7 months and 6 days, ~FRACKING underperformed the SP500 index on 50% days. Which indicates that on days ~FRACKING underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

~FRACKING returned losses on 59% days in the last three months. During this time, it delivered on average -0.77% per day. It delivered it's worst daily return of -5.96%, during this period, on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 25 Sep, 2018. The bullish trend returned +2.63% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -21.16% of investor capital.

On monthly basis, ~FRACKING delivered losses in more months over the last year, than profits. ~FRACKING delivered profits less regularly than SP500 index. ~FRACKING was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -20.01% compared to -7.75% returned by SP500 index in Dec 2018. ~FRACKING had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -53.83%. It is interesting to note that both ~FRACKING and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.

~FRACKING is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~FRACKING's volatility from 24 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 ~FRACKING has significant positive skewness in it's return distribution. This indicates that investors can expect ~FRACKING to recover from drawdowns quickly. Which makes ~FRACKING a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~FRACKING), three large cap instruments that deserve special mention are MSFT, CSCO and V. They have all outperformed the market and must be closely watched for investment opportunities.

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