Medical Devices THEME

1546.39 -1.87 (-0.12%) Sell

Optimize theme

MEDICALDEVICES THEME investors looking to exit as part of sectoral rotation

14 min read

Medical Devices is a falling knife that can bleed you if you catch it on Tuesday. It delivered -0.12% to close at 1546.39. On a day when the overall market breadth was 34%, it closed higher than 77% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

Buy-and-Hold investors in ~MEDICALDEVICES experienced a maximum drawdown of -11.55% over the last three months. It delivered -6.69% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


~MEDICALDEVICES has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 1 Dec, 2016 to 12 Dec, 2018. Over the last 2 years 11 months and 14 days, ~MEDICALDEVICES outperformed the SP500 index on 57% days.

~MEDICALDEVICES was profitable on 53% days in the last three months. During this time, it delivered on average -0.1% per day. It delivered it's worst daily return of -3.1%, during this period, on Friday, 7 Dec, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 19 Sep, 2018 and went on till 1 Oct, 2018. This bullish trend returned +2.22% to investors.

The last 12 months saw ~MEDICALDEVICES's investors making profits in 9 months and incurring losses in 3 months. During the last year, ~MEDICALDEVICES delivered profits in more months than SP500 index. ~MEDICALDEVICES significantly outperformed SP500 index in Nov 2018, when it returned +9.9% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~MEDICALDEVICES had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Mar 2018 to Sep 2018) during which period it delivered +17.24%. It is interesting to note that both ~MEDICALDEVICES and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Based on my own personal experience - both as an investor in recent years and an expert witness in years past - rarely do more than three or four variables really count. Everything else is noise.

~MEDICALDEVICES 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 ~MEDICALDEVICES's volatility from 27 Sep, 2018 to 7 Dec, 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 ~MEDICALDEVICES has significant positive skewness in it's return distribution. This indicates that investors can expect ~MEDICALDEVICES to recover from drawdowns quickly. Which makes ~MEDICALDEVICES a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~MEDICALDEVICES you may find it interesting to know that MSFT, V and PFE are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter