Screening Beverage and Alcohol Stocks with MACD and Moving Averages

Summary

The document presents a stock screen focused on beverage and alcohol import or export companies, with MACD above zero and the 20-day moving average above the 120-day average. The combination is intended to select companies in the relevant industry whose momentum and moving-average alignment are positive. The article later proposes longer moving-average periods and adding other technical and financial measures.

It discusses MACD lag, moving-average crossovers, and the effects of unusual market conditions or economic changes as risks. SQL and Python examples are included, along with a portfolio routine that selects up to 50 securities and exits positions after a specified loss threshold. No backtest results or evidence that the selection rules predict returns are provided. The examples also do not consistently match the described industry screen and the adjusted moving-average logic, so the proposed filters and implementation should be verified before use.

Key ideas

• The described screen combines a beverage and alcohol industry filter with MACD above zero and the 20-day average above the 120-day average.
• The article suggests considering longer moving-average periods and adding technical or financial indicators.
• It identifies indicator lag, moving-average crossovers, and changing economic conditions as risks.
• The code examples include a position exit threshold and a limit on the number of selected stocks.
• No performance evidence is presented, and the examples do not fully align with all stated criteria.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.