It’s been a rather interesting couple of weeks in the stock market with Pfizer (PFE) and Moderna (MRNA), and, of course, news of the Presidential Election. However, neither of those stocks flashed either buy or sell Simple Moving Average Crossover (SMAC) signals during the last two weeks. Pfizer is riding on a Buy Signal from October 27th at $35.15 and Moderna is doing the same from a Buy Signal on October 8th at $72.93. I’ve included graphs for each company below as Figure 1 and 2, respectively.
The SMAC Strategy has definitely not been kind to Pfizer over the last two years, but I think it could certainly be something to watch over the next six months. As mentioned, we’re in the middle of a Buy and Hold, and if the stock continues to go up without flashing a Sell Signal, it could prove to be profitable.
Moderna, on the other hand, has done very well with the SMAC Strategy. As with Pfizer, if it does continue to go up, then it could continue to prove profitable to investors.
Now on to business. Since my last article 102 companies on the S&P 500 as well as the NASDAQ 100 have flashed SMAC Buy Signals. All the while, 45 companies in each list have flashed Sell Signals. In this article, I really just want to concentrate on a couple of stocks that have flashed Sell Signals, keeping it short and sweet this week.
First up is Chipotle (CMG) as seen below.
In the last two years, Chipotle has been recovering from a public relations nightmare as people were getting sick from eating there. Thankfully they’ve been able to mostly fix the issues that were causing concern during that time, and investors have been handsomely rewarded. As you can see here, they, too, saw quite the dip during the March shutdowns but quickly recovered and continued their win streak. They, perhaps better than most, had an online platform that was incredibly robust and easy to use. It’s something I would use to pick up lunch on my way to work. Unfortunately the stock has been floundering sitting hitting a high of $1379.03 on September 2nd. As a result, Chipotle flashed a Sell Signal this week. Might have been a good time to take some of those profits, after all.
Next up is Zoom as seen above. They, too, have been a company that has been on a tear this year as more and more people used their services for work meeting as well as keeping up with family members. I had been using Zoom for Video Conference for the last couple of years myself with my Teaching Assistant duties with General Assembly, so I was quite familiar with what they offered. Heck, even my parents now use it to attend bible study and “visit” with family across the country. Using the SMAC Strategy, Zoom has been incredibly profitable for those who use it. Look at that gain just this year alone. Unfortunately, they have not really recovered much from hitting an all-time high of $568.34 back on October 19th having fallen quite a bit, so it might have been a good time to take some profits regardless.
I’m going to stop there for now. The upcoming week will be a short one for stock trading with Thanksgiving on Thursday. I have a four day weekend myself and staying home as most Americans should be doing, so I will likely try and do some more project work in the interim. I still want to show off the Moving Average Convergence Divergence Strategy that I had been working on several weeks ago. Long term, I definitely think it would be nice to have some kind of application that people can use to see the stocks themselves and compare the different stock charts and backtesting results. Will see how it goes, though. Have a Happy Thanksgiving, everyone!