METALFAB THEME investors looking to exit as part of sectoral rotation

Metal Fabrication and Hardware ranked among the worst performers on Tuesday. It delivered -0.36% to close at 1228.64. On a day when the overall market breadth was 34%, it closed higher than 73% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

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Buy-and-Hold investors in ~METALFAB experienced a maximum drawdown of -23.76% over the last three months. It delivered -22.76% during this strong 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. The net profit from Short signals was +19.44%.

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~METALFAB has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 Aug, 2016 to 30 May, 2018. Over the last 2 years 6 months and 8 days, ~METALFAB outperformed the SP500 index on 51% days.

During the last three months ~METALFAB was mostly loss making and delivered on average -0.4% per day. It's best return during this period (of +3.96%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -5.42%) was on Tuesday, 4 Dec, 2018. The longest stort-term trends during this period were 7 profitable and losing days. The bullish trend (which returned +9.85%) started on 30 Oct, 2018 and went on till 7 Nov, 2018 while the bearish trend (which returned -10.41%) started on 4 Oct, 2018 and went on till 12 Oct, 2018.

The last 12 months saw ~METALFAB's investors making profits in 6 months and incurring losses in 6 months. ~METALFAB was less consistent in delivering monthly returs than SP500 index. ~METALFAB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.96% compared to -7.75% returned by SP500 index in Dec 2018. ~METALFAB had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ~METALFAB and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The monarchy is foremost a business, and it's important to them that the British public continue to finance the excessive luxurious lifestyles of the now quite enormous, wasteful and useless 'royal' family. I find it very sad.

~METALFAB 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 ~METALFAB's volatility from 19 Sep, 2018 to 4 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 ~METALFAB has significant positive skewness in it's return distribution. This indicates that investors can expect ~METALFAB to recover from drawdowns quickly. Which makes ~METALFAB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~METALFAB you may find it interesting to know that BAM has delivered similar performance as ~METALFAB and can be considered as an alternative investment candidate (to ~METALFAB).