The positive news about Pfizer's (PFE) Covid-19 vaccine sent the markets soaring Morning. However, Jim Cramer told viewers of his Mad Money program that doesn't mean it's time to sell all of your stay-at-home stocks quite yet.
By Pfizer's estimates, the company will only have enough doses to treat 23 million people globally this year, and it will only be able to vaccinate 600 million throughout all of next year. That means it's still not too late to sell the office and retail REITs and the banks into any strength.
Cramer said the oil stocks will also continue to struggle, which is why he's only recommending Chevron (CVX) and Pioneer Natural Resources (PXD) in the oil patch. Let's check out a couple charts for each of these names.
In the daily bar chart of CVX, below, we can see that the shares gapped above the declining 50-day moving average line Monday but stopped short of the underside of the declining 200-day moving average line. Prices closed in the lower part of Monday's high/low range so we know that buyers were not entirely convinced of the move up.
The trading volume has been heavier since the middle of October and the On-Balance-Volume (OBV) line shows strength since late October and that is encouraging. The Moving Average Convergence Divergence (MACD) oscillator is moving up toward the zero line and hopefully an outright long signal.