Analysis of S&P 500 stocks: Long-term vs short-term investment

This paper is concerned with analyzing the stocks in Standard & Poors 500 Index that potentially yield high returns. To achieve this goal, historical stock prices and their corresponding simple moving averages are used together to capture trend directions. When time series of crosses over its average line from below (or above), it indicates an up down) signal a buy sell) initiated. A trading strategy consisting these buying selling indicators implemented. Simple various lengths constructed employed order maximize return for each stock. The results suggest long-term can returns short-term generally perform poorly.