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

~HOUSEWARES delivered massive losses today. On a longer term basis, investors in Housewares made -0.02% per day. Tuesday's performance of -0.02% was a underperformance compared to it's daily average.

[Theme constituents]

~HOUSEWARES showed a strong bearish trend over the last 3 months. During this period ~HOUSEWARES delivered -11.68% and saw a maximum drawdown of -15.57%. There were 2 short signals during this period that returned a cumulative of +7.52% to investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~HOUSEWARES has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 12 Dec, 2016 to 9 Oct, 2018. Over the last 2 years 11 months and 14 days, ~HOUSEWARES underperformed the SP500 index on 50% days. Which indicates that on days ~HOUSEWARES underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~HOUSEWARES was mostly loss making and delivered on average -0.18% per day. It's best return during this period (of +3.78%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -3.84%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 27 Sep, 2018 and ended on 5 Oct, 2018. This bearish trend lost -5.88% of investor capital.

The last 12 months saw ~HOUSEWARES's investors making profits in 4 months and incurring losses in 8 months. ~HOUSEWARES was less consistent in delivering monthly returs than SP500 index. ~HOUSEWARES significantly outperformed SP500 index in Nov 2018, when it returned +11.63% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~HOUSEWARES had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -22.9%. It is interesting to note that both ~HOUSEWARES and SP500 index significantly outperform during months when quarterly/annual results are announced.

Outcome is simply the final score: Who won the game; what numbers came up in a roll of the dice; how high did a stock go. Outcome is the result, regardless of the method used to achieve it. It is not controllable.
-- Barry Ritholtz

~HOUSEWARES 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 ~HOUSEWARES's volatility from 19 Sep, 2018 to 6 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 ~HOUSEWARES has significant positive skewness in it's return distribution. This indicates that investors can expect ~HOUSEWARES to recover from drawdowns quickly. Which makes ~HOUSEWARES a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~HOUSEWARES you may find it interesting to know that TYHT has shown remarkable performance and deserves to be on every investors' watchlist.