Tech Small Caps THEME

1153.95 +16.83 (+1.46%) Sell

Optimize theme

Stop-loss on the minds of TECHSMALLCAPS THEME investors as it significantly underperforms

14 min read

Tech Small Caps has destroyed investor wealth on Tuesday. It gained +1.46% to close at 1153.95. It is currently trading -18% below it's 52 week high of 1407.79.

[Theme constituents]

~TECHSMALLCAPS is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +9.06% for investors.


~TECHSMALLCAPS has been outperforming the SP500 index in recent time. Over the last 1 year 1 month and 1 day, ~TECHSMALLCAPS outperformed the SP500 index on 59% days.

~TECHSMALLCAPS returned losses on 53% days in the last three months. During this time, it delivered on average -0.24% per day. It delivered it's worst daily return of -6.71%, during this period, on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -13.66% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +9.34% to investors.

~TECHSMALLCAPS had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of ~TECHSMALLCAPS and SP500 index were the same. ~TECHSMALLCAPS significantly outperformed SP500 index in Aug 2018, when it returned +18.48% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~TECHSMALLCAPS and SP500 index, both had periods of 6 consecutive profitable months.

"A bull market is very much like being in love. You don't realise its value till It's gone.

~TECHSMALLCAPS 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 ~TECHSMALLCAPS's volatility from 28 Sep, 2018 to 19 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 ~TECHSMALLCAPS has significant positive skewness in it's return distribution. This indicates that investors can expect ~TECHSMALLCAPS to recover from drawdowns quickly. Which makes ~TECHSMALLCAPS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

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