A-Share Screen Using Positive MACD, Positive P/E, Low Holdings Ratio, and Market Cap

Summary

This daily pre-open stock screen combines a positive MACD reading, positive trailing P/E, a holdings ratio below 20%, and market capitalization of at least 200 million. The document interprets positive MACD as an upward trend, positive P/E as a normal valuation reading, and the holdings-ratio limit as a way to reduce the influence of large holders. A minimum market size is presented as a possible source of resilience.

It gives indicator definitions and example screening logic, plus an illustrative ranking by trading activity. No historical backtest, performance data, or evidence that the conditions predict returns is provided. The authors caution that meeting the filters does not establish sound fundamentals, and that the holdings cap may exclude otherwise attractive companies. They suggest adding other technical and fundamental measures and reviewing the approach as market conditions change.

Key ideas

• The screen selects stocks with MACD above zero and trailing P/E above zero.
• It also requires a holdings ratio below 20% and market capitalization of at least 200 million.
• The selection is intended to run before the market opens each trading day.
• The document offers no backtest evidence and warns that screening conditions do not guarantee strong fundamentals or returns.

Tags

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