Online Trading THEME

1687.69 -12.91 (-0.76%) Buy

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ONLINETRADING THEME investors treading cautiously as performance is muted

13 min read

Online Trading has destroyed investor wealth today. It returned -0.76% to close at 1687.69. During the last week it returned -3.85% and saw a maximum drawdown of -3.85%.

[Theme constituents]

Buy-and-Hold investors in ~ONLINETRADING experienced a maximum drawdown of -6.02% over the last three months. It returned +15.81% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +11.2%.

Trend

~ONLINETRADING has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~ONLINETRADING outperformed the SP500 index on 52% days.

During the last three months ~ONLINETRADING delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.75%) was on Tuesday, 27 Nov, 2018. While it's worst loss in the same period (of -1.6%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -3.56% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +7.33% to investors.

On monthly basis, ~ONLINETRADING delivered profits in more months over the last year, than losses. ~ONLINETRADING delivered profits less regularly than SP500 index. ~ONLINETRADING significantly outperformed SP500 index in Nov 2018, when it returned +15.71% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~ONLINETRADING had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both ~ONLINETRADING and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.

~ONLINETRADING is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~ONLINETRADING's volatility from 24 Sep, 2018 to 27 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 ~ONLINETRADING has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in ~ONLINETRADING), EW is a mid cap that deserves to be closely tracked for investment opportunities.

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