MRK ranked among the worst performers today. On a longer term basis, investors in MERCK & CO., INC. made -0.03% per day. Tuesday's performance of -1.2% was a underperformance compared to it's daily average.
MRK showed a bullish trend over the last 3 months. During this period MRK delivered +6.22% and saw a maximum drawdown of -6.31%. There was a long signal during this period which returned +6.22%.
MRK has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Mar, 2018 to 13 Dec, 2018. Over the last 2 years 11 months and 14 days, MRK outperformed the SP500 index on 52% days.
During the last three months MRK was mostly profitable and delivered on average +0.1% per day. It's best return during this period (of +2.53%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.2%) was on Friday, 14 Dec, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 16 Oct, 2018 and went on till 22 Oct, 2018. This bullish trend returned +4.4% to investors.
The last 12 months saw MRK's investors making profits in 10 months and incurring losses in 2 months. During the last year, MRK delivered profits in more months than SP500 index. MRK significantly outperformed SP500 index in Apr 2018, when it returned +10.51% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MRK had a longer winning streak of profitable months than SP500 index. It went up in 9 straight months (from Mar 2018 to Nov 2018) during which period it delivered +41.26%. It is interesting to note that both MRK and SP500 index significantly outperform during months when quarterly/annual results are announced.
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
-- Warren Buffett
MRK is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in MRK's volatility from 24 Sep, 2018 to 29 Oct, 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 MRK has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
Investors trading in MRK derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
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