Stop-loss on the minds of WEARABLETECH THEME investors as it ranked among the worst performers

Wearable Tech was among the worst performers today. It grew by +0.91% to close at 1362.11. During the last week it lost -3.59% and saw a maximum drawdown of -4.46% before bouncing back.

[Theme constituents]

Buy-and-Hold investors in ~WEARABLETECH experienced a maximum drawdown of -18.43% over the last three months. It lost -16.01% during this strong down 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 +11.13%.

Trend

Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

~WEARABLETECH has been underperforming the SP500 index in recent time, after having outperformed till 14 Jun, 2018. Over the last 2 years and 2 months, ~WEARABLETECH outperformed the SP500 index on 54% days.

During the last three months ~WEARABLETECH was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +7.44%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -5.41%) was on Monday, 12 Nov, 2018. There was initially a bearish trend during this period which started on 1 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -12.59% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +5.5% to investors.

~WEARABLETECH had 5 profitable and 7 loss making months over the last year. During the last year, ~WEARABLETECH underperformed SP500 index on monthly return basis. ~WEARABLETECH significantly outperformed SP500 index in May 2018, when it returned +12.76% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~WEARABLETECH had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -19.03%. It is interesting to note that both ~WEARABLETECH and SP500 index significantly outperform during months when quarterly/annual results are announced.

Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.
-- Warren Edward Buffett

~WEARABLETECH 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 ~WEARABLETECH's volatility from 25 Sep, 2018 to 1 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 ~WEARABLETECH has significant positive skewness in it's return distribution. This indicates that investors can expect ~WEARABLETECH to recover from drawdowns quickly. Which makes ~WEARABLETECH a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~WEARABLETECH), three mid cap instruments that deserve special mention are SQ, EW and RHT. They have all outperformed the market and must be closely watched for investment opportunities.