Screening Stocks with Positive MACD, Positive P/E, and Listing History
Summary
This daily stock screen selects securities before the market opens using three conditions: MACD above zero, a positive price-to-earnings ratio, and more than one year since listing. The document presents MACD as a way to identify an upward trend, treats positive P/E as a basic valuation sanity check, and excludes newer listings because of their potentially higher volatility. It also gives indicator definitions, a screening expression, and a Python illustration.
No historical performance, benchmark comparison, or risk-adjusted results are supplied, so the stated rationale is not evidence that the filter earns returns. The screen is intentionally simple and omits broader company fundamentals, a limitation the document acknowledges. The example code also has data and implementation ambiguities, including a single index symbol and an IPO-date calculation that does not clearly describe a cross-sectional stock universe. Further validation and careful data handling would be needed before using it in research or trading.
Key ideas
- The screen requires MACD above zero, positive P/E, and more than one year since listing.
- It is intended to run before each trading day's open.
- The document provides indicator formulas and illustrative screening code.
- No performance evidence is presented, and fundamental analysis is limited.
- The Python example does not clearly demonstrate a complete stock-universe workflow.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.