Screening Stocks with Positive MACD, Positive P/E, and Recent Price Spikes

Summary

This document describes a daily pre-market stock screen combining three conditions: MACD above zero, positive trailing price-to-earnings ratio, and at least one daily gain of 10% or more within the prior 25 trading days. It presents the MACD as a trend filter, positive P/E as a basic valuation constraint, and a recent large gain as a sign of trading activity. It also offers example indicator formulas and sample Python logic, with candidates sorted by daily performance.

The article gives no backtest, returns, or empirical evidence that the screen predicts future gains. It flags market volatility, the subjectivity and incompleteness of the criteria, and the risks of stocks that have recently surged. There is also a potential mismatch in the examples: the written rule requires a large daily gain during the lookback period, while the formula appears to test the current day's gain and adds a 25-day high-low range condition. Those details would need reconciliation before implementation.

Key ideas

• The screen combines MACD above zero with positive P/E and a recent daily gain of at least 10%.
• It is intended to run before each trading day's open.
• The document interprets positive MACD as a trend signal and positive P/E as a basic valuation filter.
• Recent sharp gains can indicate activity but may also bring substantial price volatility.
• The sample formula does not cleanly match the stated lookback rule and should be checked before use.

Tags

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