Wall Street THEME

1243.05 -17.84 (-1.43%) Sell

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

14 min read

~WALLSTREET was among the worst performers today. On a longer term basis, investors in Wall Street made +0.04% per day. Friday's performance of -1.43% was a significant underperformance compared to it's daily average.

[Theme constituents]

~WALLSTREET showed a strong down trend over the last 3 months. During this period ~WALLSTREET returned -14.86% and saw a maximum drawdown of -18.33%. There was a short signal during this period which returned +14.86%.


~WALLSTREET has been underperforming the SP500 index in recent time, after having outperformed till 22 May, 2018. Over the last 2 years 11 months and 3 days, ~WALLSTREET underperformed the SP500 index on 48% days. Which indicates that on days ~WALLSTREET underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~WALLSTREET was mostly loss making and delivered on average -0.24% per day. It's best return during this period (of +2.63%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -5.0%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +3.28% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -7.76% of investor capital.

On monthly basis, ~WALLSTREET delivered losses in more months over the last year, than profits. ~WALLSTREET delivered profits less regularly than SP500 index. ~WALLSTREET was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.41% compared to -7.28% returned by SP500 index in Oct 2018. ~WALLSTREET had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -15.8%. It is interesting to note that both ~WALLSTREET and SP500 index significantly outperform during months when quarterly/annual results are announced.

The studios don't finance anymore, they get outside funds.
-- Robert Rodriguez

~WALLSTREET is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~WALLSTREET's volatility from 12 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~WALLSTREET has significant positive skewness in it's return distribution. This indicates that investors can expect ~WALLSTREET to recover from drawdowns quickly. Which makes ~WALLSTREET a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~WALLSTREET), two instruments that have delivered similar performance as ~WALLSTREET are HPP and SNN. They are suitable as good alternative investment candidates that can diversify your portfolio.

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