Screening Stocks with Positive MACD, Positive P/E, and High Turnover

Summary

This document describes a daily, pre-market stock screen combining MACD above zero, positive trailing P/E, and prior-day turnover above 8%. It presents MACD as a trend filter, positive P/E as a basic valuation condition, and turnover as a sign of trading activity. It also suggests ranking selected stocks by trading interest, such as daily traded value, and gives indicator and Python examples.

The article offers no backtest results or evidence that the screen produces returns. It warns that meeting the conditions does not establish sound fundamentals, and that market and data risks remain. There is also a discrepancy in the turnover example: its stated formula uses prior closing prices rather than a turnover-rate field, so it does not appear to calculate turnover as described. The suggested additions, such as other indicators or industry filters, are proposals rather than evaluated improvements.

Key ideas

• The screen selects stocks with MACD above zero, positive P/E, and prior-day turnover above 8%.
• Selection is intended to run before each trading day opens.
• The document suggests ranking candidates by trading activity, such as traded value.
• The turnover example uses closing prices, which does not match the described turnover-rate condition.
• The article supplies no performance evidence and warns that screening conditions do not guarantee sound fundamentals.

Tags

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