GAYFRIENDLY THEME is a falling knife, continues to bleed every investor trying to catch it
18 Dec, 201814 min read
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Gay Friendly significantly underperformed today. It lost -0.2% to close at 1431.13. During the last week it lost -4.01% and saw a maximum drawdown of -4.38% before bouncing back.
Buy-and-Hold investors in ~GAYFRIENDLY experienced a maximum drawdown of -7.0% over the last three months. It lost -4.78% during this 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.
~GAYFRIENDLY has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~GAYFRIENDLY outperformed the SP500 index on 60% days.
~GAYFRIENDLY was profitable on 50% days in the last three months. During this time, it delivered on average -0.07% per day. It delivered it's worst daily return of -2.75%, during this period, on Wednesday, 10 Oct, 2018. There was initially a bullish trend during this period which started on 27 Sep, 2018 and went on till 3 Oct, 2018. The bullish trend returned +0.88% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -2.55% of investor capital.
~GAYFRIENDLY had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of ~GAYFRIENDLY and SP500 index were the same. ~GAYFRIENDLY was also a less risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -6.89% compared to -7.75% returned by SP500 index in Dec 2018. ~GAYFRIENDLY and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ~GAYFRIENDLY and SP500 index significantly outperform during months when quarterly/annual results are announced.
The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher
~GAYFRIENDLY 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 ~GAYFRIENDLY's volatility from 19 Sep, 2018 to 26 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 ~GAYFRIENDLY has significant positive skewness in it's return distribution. This indicates that investors can expect ~GAYFRIENDLY to recover from drawdowns quickly. Which makes ~GAYFRIENDLY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
SP500 index has more chance of extreme outcomes than ~GAYFRIENDLY. Therefore, SP500 must receive a lower allocation than ~GAYFRIENDLY in your portfolio. SP500 index usually has shorter drawdown period than ~GAYFRIENDLY.
On a general note (since you are interested in ~GAYFRIENDLY), AAXN is a small cap that deserves to be closely tracked for investment opportunities.
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