Screening Profitable Small-Cap Shares with Positive MACD

Summary

This document outlines a pre-market stock screen for shares with MACD above zero, positive trailing price-to-earnings, market capitalization below the stated ceiling, and positive net income. It treats positive MACD as a sign of an upward trend and the valuation and profitability filters as ways to exclude loss-making firms and focus on smaller companies. The examples also propose ranking eligible shares by daily percentage change, although the article does not specify a full portfolio construction or trading method.

The document offers no historical results or evidence that the combined criteria improve returns. It cautions that equity market risk remains and that a positive P/E ratio does not establish durable earnings power. Suggested refinements include adding measures such as book value or return on equity, reviewing the screen over time, and assessing historical performance. The strategy is therefore a screening recipe, not a validated forecast; its daily selection timing and listed thresholds do not address execution, position sizing, or transaction costs.

Key ideas

• The screen requires MACD above zero, positive P/E, market capitalization below the stated limit, and positive net income.
• The selection is intended to be run before each trading day opens.
• The article suggests ranking qualifying shares by percentage change but supplies no performance results.
• Positive P/E may not capture long-term earning capacity, and market risk remains.
• The author recommends adding fundamental filters and reviewing historical strategy performance.

Tags

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