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

Junk Foods was among the worst performers today. It fell by -0.14% to close at 1223.35. It's recent 5 day performance has been -1.85%, -1.77%, +0.24%, +0.72% and -0.32%.

[Theme constituents]

~JUNKFOODS is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for ~JUNKFOODS's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -2.42%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to ~JUNKFOODS.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~JUNKFOODS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Jun, 2017 to 23 May, 2018. Over the last 2 years 2 months and 1 days, ~JUNKFOODS outperformed the SP500 index on 50% days. Which indicates that on days ~JUNKFOODS outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months ~JUNKFOODS delivered profits on 52% days. However, it still managed to end this period in a loss. It's best return during this period (of +1.99%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -1.85%) was on Monday, 17 Dec, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 1 Nov, 2018 and went on till 7 Nov, 2018. This bullish trend returned +3.73% to investors.

During the last year ~JUNKFOODS had 6 profitable months and 6 loss making months. ~JUNKFOODS returned profits in fewer months than SP500 index. ~JUNKFOODS was also a less risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -6.36% compared to -7.75% returned by SP500 index in Dec 2018. ~JUNKFOODS had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both ~JUNKFOODS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Live as if you were to die tomorrow. Learn as if you were to live forever.
-- Mahatma Gandhi

~JUNKFOODS is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~JUNKFOODS's volatility from 19 Sep, 2018 to 11 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 ~JUNKFOODS has significant positive skewness in it's return distribution. This indicates that investors can expect ~JUNKFOODS to recover from drawdowns quickly. Which makes ~JUNKFOODS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~JUNKFOODS you may find it interesting to know that AMZN and PFE are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.