A Daily Chinese Equity Screen Using MACD, Positive P/E, and Float Size
Summary
The document outlines a daily pre-market screen for Chinese stocks that combines three conditions: MACD above zero, positive trailing P/E, and a circulating share count no greater than 5.5 billion shares. It interprets positive MACD as a sign of an upward trend, positive P/E as an ordinary valuation reading, and the float ceiling as a way to focus on smaller companies. The suggested ranking is based on trading activity, such as turnover, after applying the filters.
It provides indicator definitions and sample screening logic, but does not report backtest results, entry or exit rules, portfolio weights, or transaction costs. The source itself notes market uncertainty, the risk that a screen does not establish sound fundamentals, and possible inaccuracies in float data. Its claim that smaller companies may have more upside is not substantiated in the document. The screen is therefore a starting filter rather than a complete or validated trading strategy.
Key ideas
- The screen selects stocks with MACD above zero, positive trailing P/E, and a circulating share count at or below 5.5 billion.
- It is intended to run before the market opens each trading day.
- The document suggests ranking qualifying stocks by trading activity such as turnover.
- A positive screen result does not establish that a company has sound fundamentals.
- Float data errors, market risk, and the absence of tested trading rules limit the strategy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.