China Stock Screening with Turnover, Recent Dragon-Tiger List, and Moving Averages

Summary

This China-stock screen combines three conditions: turnover between 3% and 12%, appearance on the previous day’s Dragon-Tiger list, and a 20-day moving average above the 120-day moving average. The post frames turnover and the market activity list as measures of liquidity and attention, while the moving-average comparison selects stocks whose shorter-term trend is above the longer-term trend. Its sample selection logic also orders qualifying names by a trading-activity measure.

The author warns that the rules are narrow and can miss fundamental, industry, policy, and broader market factors. A sharp price move can also alter moving-average signals and lead to misleading readings. The post proposes combining the screen with other technical and fundamental analysis, but supplies no backtest, return statistics, or evidence that the filters identify profitable investments. The listed thresholds describe the screen; they do not by themselves establish suitability or expected performance.

Key ideas

• The screen requires turnover from 3% through 12% and a Dragon-Tiger list appearance on the prior day.
• It selects stocks where the 20-day moving average exceeds the 120-day moving average.
• The post treats turnover and list membership as activity filters and the moving averages as a trend filter.
• The rules omit many fundamental and market factors, and rapid price changes may distort the moving-average signal.
• No performance test or evidence of profitability is provided.

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