Screening Stocks by Positive MACD, Positive P/E, and Recent Limit-Ups

Summary

This premarket stock screen combines three conditions: MACD above zero, price-to-earnings ratio above zero, and more than two limit-up days during the prior ten days. The article interprets positive MACD as an uptrend, positive P/E as a normal valuation reading, and repeated limit-ups as evidence of momentum. It includes example indicator formulas and Python-style filtering and ranking references, with ranking based on trading activity.

The post provides no backtest or performance evidence, and satisfying the conditions does not establish sound fundamentals or future gains. It notes that limit-up frequency can reflect market sentiment and may not work across market environments; equities can also incur substantial losses. Suggested refinements include additional technical measures, capital-flow information, and peer valuation comparisons. The screen is therefore a heuristic for candidate selection, with its predictive value left untested in the document.

Key ideas

• The screen requires MACD above zero and a positive P/E ratio.
• It selects stocks with more than two limit-up sessions in the prior ten days.
• The stated selection time is before the market opens each trading day.
• The document warns that limit-up counts are sensitive to market sentiment.
• No backtest establishes the profitability or reliability of the screen.

Tags

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