Screening Profitable Small-Cap Stocks with Rising Moving Averages

Summary

The document describes an A-share stock screen combining daily price movement, market capitalization, profitability, and moving-average conditions. It selects stocks with an intraday range of at least 1%, positive net profit, market value up to 10 billion yuan, a close at or above the 10-day average, and the 10-day average at or above the 20-day average. The author frames the screen as a way to find smaller, profitable companies with recent upward price momentum.

The post cautions that short-term price strength can distract from long-term value, and that moving averages may also reflect an overheated market. It recommends combining technical filters with financial and fundamental analysis and adjusting screening frequency. The document offers indicator and Python examples, but provides no backtest, performance evidence, or rules for portfolio construction and execution; its claims about growth potential and upside are not demonstrated.

Key ideas

• The screen combines a minimum daily range with a small-capitalization ceiling and positive net profit.
• It requires the close to be above the 10-day average and that average to be above the 20-day average.
• The moving-average structure is intended to capture recent upward momentum.
• The author warns that technical strength can coexist with overbought conditions and weak fundamental context.
• The post recommends adding financial and fundamental measures, but does not report tested results.

Tags

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