HOMEFURNISHINGS THEME investors looking to exit as part of sectoral rotation
18 Dec, 201814 min read
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Home Furnishings has destroyed investor wealth today. It delivered -0.06% to close at 875.605. During the last week it delivered -6.47% and saw a maximum drawdown of -6.47%.
~HOMEFURNISHINGS is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +12.08% for investors.
~HOMEFURNISHINGS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 3 Oct, 2017 to 1 Jun, 2018. Over the last 1 year and 3 months, ~HOMEFURNISHINGS underperformed the SP500 index on 49% days. Which indicates that on days ~HOMEFURNISHINGS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months ~HOMEFURNISHINGS was mostly loss making and delivered on average -0.32% per day. It's best return during this period (of +3.44%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -5.39%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -8.87% of investor capital.
The last 12 months saw ~HOMEFURNISHINGS's investors making profits in 3 months and incurring losses in 9 months. ~HOMEFURNISHINGS was less consistent in delivering monthly returs than SP500 index. ~HOMEFURNISHINGS significantly outperformed SP500 index in Aug 2018, when it returned +11.85% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~HOMEFURNISHINGS had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -12.14%.
"There is a huge amount of freedom that is derived from not fighting the market.
~HOMEFURNISHINGS 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 ~HOMEFURNISHINGS's volatility from 20 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 ~HOMEFURNISHINGS has positive skewness in it's return distribution. This indicates that investors can expect ~HOMEFURNISHINGS to make attempts to recover from drawdowns quickly. Which makes ~HOMEFURNISHINGS a good candidate for momentum based trading on short-term bullish trends or counter-trends.
~HOMEFURNISHINGS has more chance of extreme outcomes than the SP500 index. Therefore, ~HOMEFURNISHINGS must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ~HOMEFURNISHINGS.
Based on your interest in ~HOMEFURNISHINGS you may find it interesting to know that RHT, SQ and LULU are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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