Price Patterns - Price Downside Is for Losers

Prices on the downside are bad bets for investors. Merck (MRK), a large pharmaceutical company, peaked in December 2000 at $78 and then went to the downside.

Of the 1,891 buy and sell combinations (investments) based on monthly closing prices from December 2000 through January 2006, only 267 (14.12%) made money. The other 1,624 (85.88%) investments were unprofitable.

The percent winners chart shows the money makers in green and the money losers in red. The sea of red tells the story of buying and selling on the downside.

The winners and losers map shows the profitable and unprofitable investments looking straight down with no elevation.

Posted February 9, 2006.