Merck is all over the news today as they pull Vioxx from the market. The first news of trouble with Vioxx actually hit on August 25. That news threw the stock for a loop and pushed it back under its 200-day moving average. That should have been a clear sign to bail. As I type this the stock is down over 27%. Just using the 200 DMA could have saved many people a lot of money in this 'safe' stock.
Here's the daily chart:
And a 5 minute chart of the action this morning:
Update: And so it begins -- little time was wasted before the Vioxx lawsuits started to be filed:
13:36 MRK Merck: Oklahoma City law firm files lawsuit against MRK; alleges Vioxx was defective, co failed to warn public (33.05 -12.02) -- Update --The lawsuit was filed by the Oklahoma City law firms of Federman & Sherwood and Strong, Martin & Assoc on behalf of an Oklahoma County resident.
