Screening Beverage and Alcohol Stocks with RSI and Positive P/E

Summary

This post describes a simple stock selection screen combining a 14-period Relative Strength Index below 65, membership in a beverage and alcohol import-export industry category, and a positive price-to-earnings ratio. The RSI condition is intended to capture technical conditions, while the industry and valuation filters add business-sector and earnings criteria. A sample implementation also applies a minimum market capitalization, excludes special-treatment stocks, and ranks qualifying names by net money flow, although those details are not part of the headline screen.

The post offers a rationale for combining technical and fundamental filters, but it provides no performance results, validation, or evidence that these conditions identify future winners. It notes that RSI, valuation data, and market conditions can change or be delayed, and suggests additional measures and risk controls such as stop losses and position management. The strategy is therefore a basic screening recipe rather than a tested trading system; the industry classification and data fields also depend on the platform used.

Key ideas

• The core screen requires RSI below 65, a specified beverage and alcohol industry classification, and positive P/E.
• The sample implementation adds a market capitalization floor, excludes special-treatment stocks, and ranks by money flow.
• The post provides a rationale for combining technical and fundamental filters but no empirical performance evidence.
• Financial reporting delays and abnormal market moves can weaken the screen's inputs and outcomes.
• Further fundamental measures and explicit position and loss controls are suggested as possible additions.

Tags

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