Screening Chinese Stocks with Positive MACD, Popularity, and Float Limits

Summary

This note proposes screening Chinese stocks after the open using positive MACD, a circulating share count no greater than 5.5 billion, and a ranking by individual-stock popularity. Its indicator example calculates MACD from 12- and 26-period exponential averages and a 9-period signal average, then filters for a positive MACD reading. The article presents the popularity ranking as a way to order the eligible names, though it does not clearly define the popularity measure.

The note offers formula and Python examples but provides no backtest results or evidence that these conditions predict returns. It warns that float size varies across industries and markets, that short-term technical and popularity signals can overlook fundamentals, and that concentrating in a small number of names can raise risk. It recommends adding broader filters, considering company fundamentals, and diversifying the resulting portfolio. The examples would require validation because the data fields and implementation details are not consistently specified.

Key ideas

• The proposed screen combines positive MACD with a circulating-share cap of 5.5 billion.
• Eligible stocks are ordered by a popularity measure whose definition is not supplied.
• The article provides formula and Python examples but reports no performance test.
• It identifies neglected fundamentals and concentration risk as important limitations.

Tags

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