Price Patterns - Upside is for Winners

A prolonged upside produces a very high percentage of profitable investments. Investors who bought Caremark Rx (CMX), a pharmaceutical services provider, in January 2000 have a ten-fold increase. Short-term traders have made money buying on dips and selling as prices moved up.

The percent returns chart shows the 2,701 monthly close buy and sell combinations (investments) from January 2000 through February 2006 for CMX. The green area represents the 2,539 (94%) profitable investments and the red area shows the 162 (6%) unprofitable ones.

The winners and losers map shows the buy and sell combinations looking straight down without any elevation.

Posted February 7, 2006. Updated February 9, 2006.