Screening Liquid Mid-Cap Stocks After Seven Consecutive Down Days

Summary

This proposed screen selects mainland Chinese main-board stocks with turnover between 3% and 12% and circulating market value between 5 and 10 billion yuan, then looks for shares that have fallen for seven consecutive days. The stated rationale is to focus on actively traded stocks experiencing a short-term decline, potentially setting up further analysis rather than establishing a buy signal by itself.

The document notes that a sustained short-term drop may reflect company or market problems and can continue after a brief rebound. It recommends adding fundamental and technical checks, and suggests excluding stocks that hit the lower price limit during the period. The example implementation includes such an exclusion, but its precise comparison logic is not fully explained. No backtest, return results, or evidence that the filters improve selection accuracy is provided, so the screen remains an unvalidated idea.

Key ideas

• The screen combines turnover and circulating market-value ranges with seven consecutive down days.
• It targets main-board stocks in mainland China.
• A recent decline may continue and can reflect underlying company or market problems.
• The article proposes adding fundamental and technical filters and excluding limit-down cases.
• No backtest or evidence of the screen’s effectiveness is given.

Tags

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