Screening Stocks with Positive MACD and Low Ownership Concentration

Summary

The document describes an equity screen requiring MACD above zero, ownership concentration below 20%, and company capitalization of at least 200 million. Its rationale combines a technical condition with ownership structure and scale, aiming to identify stocks with positive momentum and less concentrated ownership. A formula and Python example illustrate retrieving valuation and price data, calculating MACD, and applying the thresholds.

The post does not provide backtest results or evidence that the screen produces superior returns. It notes that the data requirements may leave few eligible stocks and that market and fundamental risks remain. Low concentration may also exclude firms where a major shareholder provides effective oversight or continuity. The author suggests adding financial measures and adjusting the concentration and size thresholds to the industry or company structure. The implementation details depend on the cited data services and should not be treated as a complete investment process.

Key ideas

• The screen combines MACD above zero with ownership concentration below 20% and capitalization of at least 200 million.
• The proposed rationale blends technical momentum with ownership and company scale criteria.
• The example computes MACD from daily closing prices and filters candidates using valuation data.
• The document offers no performance test, and a restrictive screen may produce a small candidate set.
• Low ownership concentration does not by itself guarantee sound governance or reduce business and market risks.

Tags

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